User Account

All Pages

Identify the nature of contract

Assignment Help Accounting Basics
Reference no: EM132744830

Suppose a customer visits an Islamic Bank for opening investment account. This investment account is opened through Mudharabah contract.

Required:

Problem i. Identify the nature (type) of contract.

Problem ii. What are the roles (names) of Islamic Bank and customer in this contract?

Problem iii. If the Islamic Bank decides that the customer (depositor) will be compensated with a 10% rate of return at the end of each month for the first year and then according to the KIBOR rate. Is this return allowed in Islamic Law?

Problem iv. What are Islamic principles (Shariah rulings) regarding the profit and loss distribution in a Mudharabah contract?

Reference no: EM132744830

Questions Cloud

Prepare amortization schedule using the corridor approach : Prepare the amortization schedule using the corridor approach. ABC Corporation has the following beginning-of-the-year present values
Prepare the journal entries for krause on jan : Prepare the journal entries for Krause on Jan 1, 2020 to record signing of the lease agreement and first rental payment. Show computation of the amounts
Estimate the expected profit or loss : Today the spot rate of the Canadian dollar is $0.91 and the one-year futures contract of the Canadian dollar is priced at $0.88. Estimate the expected profit
What do you understand by data independence : What do you understand by Data Independence? What are its two types? What are the advantages and disadvantages of views in the database?
Identify the nature of contract : 10% rate of return at the end of each month for the first year and then according to the KIBOR rate. Is this return allowed in Islamic Law?
How much money must easy have in the account : EZ wants to receive an annual retirement payment of $66,000 at the beginning of each year. How much money must Easy have in the account
From world view perspective : From a world view perspective, how are situations similar? How are they different?
Why quality is important to that product or service : It is based on quality management concepts and improving quality and performance excellence. Please provide citations.
Compute kline total shareholders equity : Compute Kline's 12/31/2021 total shareholders equity. Accum Depreciation-equipment 271,000. depreciation expense 71,000. common stock 501,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd