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WorksheetsChap. 4 - Accounting for Islamic Deposits and Investments Accoun
Total questions: 13
Worksheet time: 7mins
Main sources of funds especially for Islamic banks.
Deposits & Investments
Funds & Charity
Zakat & Sadaqah
What is an Islamic deposit account as defined by IFSA 2013?
An account where the principal is guaranteed and repaid in full in accordance with Shariah principles.
An account used for investment purposes with no principal protection.
An account where profits and losses are shared between the bank and account holder.
How are profits and losses managed in an investment account?
The bank guarantees profits to the account holder.
Profits and losses are shared between the account holder and the bank.
Only the account holder bears the losses.
Which one is NOT the deposits term in Islamic Deposits?
Wadiah
Tawarruq
Mudharabah
What does the term Wadiah literally mean?
A thing left with someone who is not its real owner for safekeeping.
A deposit made to earn guaranteed profit.
A gift given to depositors for safekeeping.
What is the main characteristic of Wadiah Yad Amanah?
The bank guarantees the deposit and may provide a gift (Hibah).
The depositor gives the bank permission to use the funds.
It is based purely on trusteeship for safekeeping purposes.
What is the primary difference between Wadiah Yad Dhamanah and Qard?
Wadiah Yad Dhamanah involves trusteeship, while Qard is a lending contract.
Qard deposits are guaranteed, while Wadiah Yad Dhamanah deposits are not.
Wadiah Yad Dhamanah offers fixed returns, while Qard does not.
Journal Entry of Wadiah Deposits for (being deposits received from depositors)
Dt. Cash account, Cr. Wadiah deposit account
Dt. Wadiah deposit account, Cr. Cash account
Dt. P & L account, Cr. Cash account
What is Mudharabah?
A contract where both parties contribute equal amounts of capital.
A partnership where the financier provides capital, and the entrepreneur manages the business.
A profit-sharing agreement where losses are borne by both parties equally.
What happens in the case of a loss under a Mudharabah contract?
The loss is shared between the Rabbul Mal and the Mudharib.
The Rabbul Mal bears the loss unless it is caused by the Mudharib's negligence.
The Mudharib is solely responsible for the loss.
Which one is NOT the correct types of Mudharabah Investments?
Mudharabah Mutlaqah
Mudharabah Muqayyadah
Mudharabah Musyarakah
There are 2 method of Profit Allocation. 1. Pooling Method, 2.
Separate Investment Account Method (SIAM)
Simplify Investment Account Method (SIAM)
Strategic Investment Account Method (SIAM)
How is the Monthly Average Daily Balance (MADB) used in profit distribution?
To calculate the bank's profit for each investment.
To allocate and distribute profit among various categories of investors.
To determine the total investment weights.
