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Meezan Bank Musharika Contract Analysis

Meezan bank entered a 5-year Musharika contract with Ali Ahmad & Co to purchase a car, with Meezan Bank contributing Rs. 3 million and Ali Ahmad & Co contributing Rs. 1 million. The expected annual profits were divided between the parties based on their investment shares.

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Hamid Ullah
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5 views1 page

Meezan Bank Musharika Contract Analysis

Meezan bank entered a 5-year Musharika contract with Ali Ahmad & Co to purchase a car, with Meezan Bank contributing Rs. 3 million and Ali Ahmad & Co contributing Rs. 1 million. The expected annual profits were divided between the parties based on their investment shares.

Uploaded by

Hamid Ullah
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Assignment No 1

Meezan bank enter in to Musharika contract for purchase of car with Ali Ahmad & Co for a

period of 5 years on January 1st 2010. Meezan Bank paid Rs. 3.0Million while Ahmad & Co

paid Rs. 01 Million. Further it was decided that the bank share is divided in to five units and will

be paid at the end of each year. The expected profits for five years starting from 2010 to 2014 are

40,000, 60,000, 80,000, 25000, and 9000 respectively.

Compute the following:

i. Annual profit Meezan Bank bank and Ali Ahmad and & Co.

ii. Total profit from contract to Meezan bank and Ali Ahmad & Co.

iii. Total Payments made by Ali Ahmad & Meezan bank at the end of each year.

iv. Total payments made to Meezan bank by Ali Ahmad and & Co.

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