Banking

Murabaha — Bank Purchases Asset from Supplier

An Islamic bank purchases goods from a supplier on behalf of a customer under Murabaha.

Account NameTypeDebit ($)Credit ($)
Murabaha Asset (Bank-Held Inventory)Asset (+)50,000.00-
Cash / Accounts Payable (Supplier)Asset/Liability (-)-50,000.00

💡 Accountant's Note

In a Murabaha, the bank must genuinely own the asset before selling it to the customer. This brief ownership is essential for Shariah compliance — the bank bears title risk, however momentarily.

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