Banking

Ijara Muntahia Bittamleek — Title Transfer at End

Transferring ownership of the leased asset to the customer at the end of the Ijara term.

Account NameTypeDebit ($)Credit ($)
Accumulated Depreciation (Ijara Asset)Contra-Asset (-)30,000.00-
Ijara Asset (Cost)Asset (-)-30,000.00

💡 Accountant's Note

At term end, the fully depreciated asset is gifted or sold for a nominal amount to the customer. The bank removes both the asset and its accumulated depreciation. No gain or loss arises if the asset is fully depreciated.

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