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  3. ahmad and samuel enter into a 2 year mudaraba agre

Ahmad and Samuel enter into a 2 year mudaraba agreement, where Samuel is the Rab...

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Accounting

Ahmad and Samuel enter into a 2 year mudaraba agreement, where Samuel is the Rab al-Mal and Ahmad is Mudarib. The profit sharing ratio is 60% to the Rab al-Mal and 40% to the mudarib. Samuel invests in $10,000 the capital of the mudaraba. Ahmad, with Samuels permission, invests an additional $5,000 to make the total mudaraba capital $15,000. At the end of the first year, the mudaraba made lost 20% of its capital due to a market downturn. However, during the second year market conditions improve, and the mudaraba capital increases by 30% (from its position at the end of year one). What is the value of the capital held by Ahmad and Samuel, individually, at the end of year 2? How much What was the total profit/loss of the Mudarib at the end of the period?

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