KFH entered into a 4 year mudarabah muqayyadah contract with a mudarib with a profit...
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Accounting
KFH entered into a 4 year mudarabah muqayyadah contract with a mudarib with a profit sharing ratio of 3:1. The amount of capital involved was BD 3,000,000. The profit or loss details during the four years of the business is as follows:
1st Year : Loss of BD 250,000
2nd Year : Profit of BD 400,000
3rd Year : Loss of BD 250,000
4th Year : Profit of BD 500,000
a. Prepare the journal entries if the each period method is used
b. Prepare the journal entries if the end of period method is used
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