Reference no: EM132540344

Question - Abdullah bin Ahmad has entered into a Mudarabah contract with Bank Syariah Berhad in which he provides monetary capital of $500,000 to be managed and invested by the Bank. The Bank provides Al-Mudarabah Moqayadah investment account facility to Abdullah whereby the Bank will invest in a specific project as agreed by the client. For this project there are two other investors, Hashim and Ibrahim who have invested $500,000 and $200,000 respectively. The profit sharing between four of them is 5:5:2:2 for Abdullah, Hashim, Ibrahim, and the Bank respectively. The Bank has entered into another Mudarabahh contract (Re-Mudarabah) with Ihsan Development Berhad to undertake manufacturing project and they agreed on the profit sharing ratio of 70:30 (Bank: Ihsan).

You are required to determine the profit or loss to be shared at the end of the contract by the five parties involved above if: Profit $550,000 ; or  Loss $350,000.