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Islamic Finance Briefing - Categorized | Accounting and Audit, Banking more

Islamic banking: A gross accounting misnomer

Posted on 08 April 2011

Islamic banks extend investment (Credit/ Loans & Advances) under different modes. Under trading modes they can sell commodities on credit to its clients at a profit over cost price. Our topic would be to talk about their recording procedure thereon.
As usual, a sale in the book of bank is recorded in the name of the purchaser in the form of respective investment account, say, Murabaha (Muajjal) for the sale price. Bank records it to the debit of the concerned investment account with corresponding 2 entries, separately for cost price and the profit ……………………………………..Full Article: Source

 
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Laxman - who has written 19163 posts on Opalesque Islamic Finance Briefing.


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