Banking

Musharaka — Bank's Share of Profit

Receiving the bank's agreed share of Musharaka profits at the quarterly distribution.

Account NameTypeDebit ($)Credit ($)
Cash / Settlement AccountAsset (+)75,000.00-
Musharaka Income (Profit Share)Revenue (+)-75,000.00

💡 Accountant's Note

Musharaka profit is distributed per the agreed profit-sharing ratio — not the capital ratio. This distinction is fundamental to Shariah compliance. Losses, however, must be shared strictly in proportion to capital contributed.

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