Essentials of Islamic Finance December19, 2012

BBA-H Fall-12, Quiz# 2

Wednesday Class

Attempt both questions. Negative Marking on Scratching, erasing and cutting of

words. Time Allowed 20 minutes. 05 Marks each

Format of numericals should be followed

Q#1. Mudarbah Financing from Mudassir bank to M. Ahmad is 300,000 at 60:40

with 5% cost (sales=350,000), to Osama is 450,000 at 30:70 with 7% cost
(sales=550,000) to Zeeshan is 500,000 at 50:50 with 9% cost (sales=450,000)

After collecting the profitability, Islamic bank will share it with its Rab-al-Maal at
43:57. Determine the following details:

1. Show all the calculations with proper format

2. Mudarbah Capital amount?
3. Name the type of Mudaraba executed in the question
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Q#2. Maria Islamic finance company is providing fertilizer plant to the customer
Amna under Ijarah agreement on half yearly rent payments with following details:

Plant price Rs.910,000, Arboon 10%, Period 2 years (half yearly installments),
Amna’s six month Income is Rs.420,000, Affordability at 80% Insurance 3% per
half year. Show all the calculations.

1. What is the cost price of the plant?

2. What is monthly rental against Use and total rental amount?
3. What is half yearly, yearly and total tenure profit of Maria and ROI?

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