The bank and client executed a Murabahah contract at an agreed price of RM240,000 (RM200,000 cost...

 

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The bank and client executed a Murabahah contract at an agreed price of RM240,000 (RM200,000 cost and RM40,000 profit for a machine. The bank would receive payment by installment of RM48,000 per year for 5 years. You are required to prepare journal entries to record the following transaction 1) At the inception of a machine (at the time of contract) 2) When the installment is received in 1st year The bank and client executed a Murabahah contract at an agreed price of RM240,000 (RM200,000 cost and RM40,000 profit for a machine. The bank would receive payment by installment of RM48,000 per year for 5 years. You are required to prepare journal entries to record the following transaction 1) At the inception of a machine (at the time of contract) 2) When the installment is received in 1st year

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1 At the inception of the machine at the time of contract Cash RM240000 Machine cost RM200000 ... View the full answer