Exercise 4 (Try to solve) On January 1, 2020, Kuwait Finance House (KFH) and Kuwait
International (KIB) bank entered into three years Mudarabah contract with Kuwait Real Estate
Company (KRC) with capital contributions of KD500,000 and KD300,000, respectively. The
agreed profitsharing ratio between KFH,ADIB, and KRC is 2:1:2, respectively. The profit and
losses from the contract are as follows: Required For each year: a) Determine the profit or losses
attributable to KFH, KIB, and KRC from the contract b) Determine the capital amount recovered by
KFH and KIB c) Prepare the appropriate accounting entries at KIB.
Exercise 4 Try to solve On January 1 2020 Kuwait Finance.pdf
1. Exercise 4 (Try to solve) On January 1, 2020, Kuwait Finance House (KFH) and Kuwait
International (KIB) bank entered into three years Mudarabah contract with Kuwait Real Estate
Company (KRC) with capital contributions of KD500,000 and KD300,000, respectively. The
agreed profitsharing ratio between KFH,ADIB, and KRC is 2:1:2, respectively. The profit and
losses from the contract are as follows: Required For each year: a) Determine the profit or losses
attributable to KFH, KIB, and KRC from the contract b) Determine the capital amount recovered by
KFH and KIB c) Prepare the appropriate accounting entries at KIB
