Suppose Meezan Bank ltd received the following deposits during the first quarter of its operation in

suburb Islamabad:
Name deposits in PKR deposit date withdrawal date # of days
A 200,000 01/01/09 01/03/09 59
B 600,000 15/01/09 14/02/09 30
C 300,000 20/01/09 not yet 70
D 500,000 01/02/09 01/03/09 28

a) If profit of the bank for the quarter without charging for operating expenses is Rs; 300,000 and
operating expenses are Rs; 200,000. While using Daily Product System what is share in profit of
bank and each depositor assuming share of Rab-ul-maal is 30%?
b) If the estimated annual return was 15 percent, how much is difference in amount between actual
and
estimate?

name deposit deposits daily profit % profit ARR ERR

amoun date product amount
t
A 200,000 59 11800000 18.20988 1638891 50 -1633974.334
B 600,000 30 18000000 27.7777 2499993 50 -2492493
C 300,000 70 21000000 32.4074 2916666 50 -2907916
D 500,000 28 14000000 21.60493 1944444 50 -1938610.66
64800000

As estimated rate is 15% and ARR is 50% .bank can’t give from par account but difference is
15%*200000=30000=30000/360= 83.33333 *59=4916.666
15%*600000=90000=90000/360=250 *30=7500
15%*300000=45000=45000/360= 125*70=8750
15%*500000=75000=75000/360=208.333*28=5833.333324