Banking

Diminishing Musharaka — Customer Buys Bank's Unit

The customer purchases a unit of the jointly owned property from the bank, reducing the bank's share.

Account NameTypeDebit ($)Credit ($)
Cash / Customer AccountAsset (+)10,000.00-
Diminishing Musharaka Investment (Reduced)Asset (-)-10,000.00

💡 Accountant's Note

In Diminishing Musharaka (common for home finance in Jordan/GCC), the customer gradually buys out the bank's share. Each unit purchase reduces the bank's ownership and the rental income decreases proportionally.

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