Banking
Musharaka — Bank's Capital Contribution
An Islamic bank contributes capital to a joint venture with a customer under Musharaka.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Musharaka Investment (Partnership) | Asset (+) | 1,000,000.00 | - |
| Cash / Funding Account | Asset (-) | - | 1,000,000.00 |
💡 Accountant's Note
In a Musharaka, the bank and customer are co-owners sharing profits and losses. The bank's contribution is an equity investment, not a loan. Profit-sharing ratios are agreed upfront; loss-sharing follows the capital ratio strictly.
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