Shamil Islamic Bank agreed to manufacture an apartment for its client Jalal (from joint investment funds) under the following conditions:- Implementing the work according to the engineering plans submitted to the bank.The price of the apartment is 70,000 dinars, paid as follows:- 25,000 dinars upon completion of the building foundations.- 25,000 dinars upon completion of the majority of the building.- 20,000 dinars upon delivery of the apartment.The following operations occurred:- On April 4, 2008, the bank paid in cash the amount of 10,000 dinars for cement, iron, sand, etc.On April 20, 2008, the bank deposited an amount of 8,000 dinars, the price of cement and iron, in an account under notice for Al-Ikhwa Building Materials Stores. On April 25, 2008, the bank paid workers’ wages in the amount of 3,000 dinars in cash.- On May 1, 2008, he sent the first claim to client Jalal as agreed.- On 5/4/2008, Jalal paid the first agreed-upon payment.- On 5/5/2008, the bank paid 20,000 dinars for building materials by check to the Amman branch, and 3,000 dinars to the workers in cash.- On May 20, 2008, Al-Mustasna’ requested the second installment.- On 1/6, Jalal made the required payment.On 2/6, the bank purchased tiles, cement, and other materials necessary to complete the work, with a value of 16,000 dinars.- On 6/15, he paid the workers’ wages amounting to 3,000 dinars in cash. He sent the claim to Al-Mustasna’, asking him for the final payment.- On July 18, Jalal paid what he owed and received the apartment from the bank.Handing over the apartment and closing accountsRequired:1-Calculate the total cost of the Istisna contract2-Calculate the Islamic bank’s profit from the Istisna’ contractTotality
Shamil Islamic Bank agreed to manufacture an apartment for its client Jalal (from joint investment funds) under the following conditions:
- Implementing the work according to the engineering plans submitted to the bank.
The price of the apartment is 70,000 dinars, paid as follows:
- 25,000 dinars upon completion of the building foundations.
- 25,000 dinars upon completion of the majority of the building.
- 20,000 dinars upon delivery of the apartment.
The following operations occurred:
- On April 4, 2008, the bank paid in cash the amount of 10,000 dinars for cement, iron, sand, etc.
On April 20, 2008, the bank deposited an amount of 8,000 dinars, the price of cement and iron, in an account under notice for Al-Ikhwa Building Materials Stores. On April 25, 2008, the bank paid workers’ wages in the amount of 3,000 dinars in cash.
- On May 1, 2008, he sent the first claim to client Jalal as agreed.
- On 5/4/2008, Jalal paid the first agreed-upon payment.
- On 5/5/2008, the bank paid 20,000 dinars for building materials by check to the Amman branch, and 3,000 dinars to the workers in cash.
- On May 20, 2008, Al-Mustasna’ requested the second installment.
- On 1/6, Jalal made the required payment.
On 2/6, the bank purchased tiles, cement, and other materials necessary to complete the work, with a value of 16,000 dinars.
- On 6/15, he paid the workers’ wages amounting to 3,000 dinars in cash. He sent the claim to Al-Mustasna’, asking him for the final payment.
- On July 18, Jalal paid what he owed and received the apartment from the bank.
Handing over the apartment and closing accounts
Required:
1-Calculate the total cost of the Istisna contract
2-Calculate the Islamic bank’s profit from the Istisna’ contract
Totality
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