Nadia Sarasati

SUMMARY OF ACCOUNTING OF IJARAH

Al ijarah comes from the word al ajru which measn al ‘iwadhu (replace), ijarah is deal of transfer of service and good by renting without replace the ownership of the goods itself. The example of ijarah is bank or financial institution who rent equipment to one of the consumer from the factory which manage by the bank. The financial institution or bank may sell the goods that leased to the consumer, it is called as al-ijarah al-muntahiyah bit-tamlik. Ijarah means lease contract and also hire contract. There are two parties involved in ijarah business. Lesse and lessor. From the leasse point of view: there is operating lease and capital lease. From the lessor point of view: operating lease, direct financing lease and sales-type lease. The prerequisition is the ijab and qabul. The parties which involve in making the deal consist of the lessor, and the lesse. The object; payment (lease) and function from the usage of the assets. The function of the asset in ijarah is a contract object which must be guaranteed. The official deal is a statement from both parties who do the contract, can be oral or other form which is equivalent. The ownership trading in ijarah muntahiyah bittamlik may be done by hibah, selling before the deal end with the price as much as the amount of the rest of the installment, selling in the end of the deal period with the certain payment which is included in the beginning of the deal, and selling by installment with the price agreed in the deal. The object of ijarah is an assets which can be amortized and depreciable based on the economic life. If an entity sell the object of ijarah to other entity and the rent it, the entity realized the gain or loss in the current period in the income report and apply the accounting for lesor. If an entity rent continuesly to other party of the asset that rent from the lessor, so the entity will apply the accounting for both lesse and lessor in this PSAK.

any repairment expense Repairment expense-Asset of Ijarah Cash xx xx 7. Date of acquisition Asset of Ijarah Cash xx xx 2. received rent revenue from lessee in the due date Cash Revenue from Ijarah xx xx 4. causing amount received from rent payment is bigger than its fair value The excess of rent revenue expense Cash / A/P to lessee xx xx . receive rent revenue Cash A/R-Ijarah xx xx 6.The journal of ijarah: ● lessor (Mu’jir) 1. lessee has not paid the rent payment in the due date A/R-Ijarah Revenue from Ijarah xx xx 5. Depreciation Depreciation expense Revenue from Ijarah xx xx 3. any decreasing quality of the object which is not caused by lessee.

8. Deprec.-Asset of Ijarah Asset of Ijarah xx xx ii. Through hibah when all rent revenue payment has been received and the object does not have residual value Accum.-Asset of Ijarah Asset of Ijarah xx xx xx c) If its selling price is lower than its book value Cash Accum.-Asset of Ijarah Asset of Ijarah Gain on sale on Asset of Ijarah xx xx xx xx b) If its selling price = its book value Cash Accum. Deprec. Deprec. Through selling of the object before the end of the rent period (selling price = the amount of the rest of installment) a) If its selling price is higher than its book value Cash Accum. Takeover of the object in Ijarah Muntahiyah Bittamlik i.-Asset of Ijarah Gain on sale on Asset of Ijarah Asset of Ijarah xx xx xx xx .-Asset of Ijarah Loss on sale on Asset of Ijarah Asset of Ijarah xx xx xx xx iii. Deprec. Through selling the object after all rent revenue payment has been received and the object does not have residual value Cash Accum. Deprec.

Deprec. then that decreasing of book value was recognized as loss of: Depreciation expense-Asset of Ijarah Accum. Rent payment for one period Rent expense-Asset of Ijarah Cash xx xx ii.-Asset of Ijarah It is to record the decreasing value of the asset of Ijarah xx v.iv. Deprec. rent payment for more than one period Prepaid rent-Asset of Ijarah Cash xx xx 2. If lessee promised to buy the object but he cancelled it. and its fair value is lower than its book value. If lessee did not promise to but the object and then he decides to not buy the object. At the date of amortization of prepaid rent Rent expense-Asset of Ijarah Prepaid rent-Asset of Ijarah xx xx 3. Date of rent payment i. When the repairment cost become the expense of lessor A/R to lessor Cash xx xx . and its fair value is lower than its book value A/R to lessee xx Accum.-Asset of Ijarah xx xx ● lessee (Musta’jir) 1.

Takeover of the object in Ijarah Muntahiyah Bittamlik a) If the rent payment comes from the bank Asset of Ijarah Other operation revenue xx xx b) If the rent payment comes from unbound investment fund Asset of Ijarah Other main operation revenue Xx xx c) If the rent payment comes from investment fund Asset of Ijarah Other operation revenue Other main operation revenue xx xx xx .4. If there is any decreasing quality of the object which is not caused by lessee. which causes amount received from rent payment is bigger than its fair value Cash / A/R to lessor The excess of rent revenue expense xx xx 5.

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