Zakat exercise

Example discuss in class

Examples: Bank balance sheet
(without adjustments)
RM`000
Cash and short term funds 190,000
Financing advances and others 180,000
Deposit and placements with financial institutions 54,000
Statutory deposits with Bank Negara Malaysia 50,000
Investment in subsidiary 408,000
Property, plant and equipment 85,000
967,000

Deposits from customer 170,000
Bills and acceptance payable 18,000
Other liabilities 34,000
Long Term Liabilities 70,000

Share capital 650,000

Reserves 25,000
967,000
 Example2 (AAOFI FAS 9):
Bank balance sheet (with adjustments
RM`000
Cash and bank balance with bank and agent 155,000
Deposit and placements with financial institutions 2,010,500
Held for trading securities 1,420,500
Available for sale securities 490,200
Statutory deposits with 250,500
Financing of customers 3,800,300
Tax recoverable 9,200
Bills receivable 127,300
Fixed assets 350,000
8,613,500

Deposits from customer 7,350,000

Deposits and Placements of banks and other fin.Inst 50,500
Bills payable 65,500

Share capital 500,000

Reserves 647,500
8,613,500
Additional information: 10% of the bills receivable is non-recoverable and need to be written
off, no provisions have been made in the above balance sheet. A total of RM400,000 values of
available for sale securities of M berhad has been treated as log term investment where the
bank has no intention to liquidate and the bank intends to become the major shareholders of
Answer: Bank Balance Sheet
(without adjustments)
Tax incentive: The Income Tax (Reduction from
Retiired) (Amendment) Act 2000 anybody who pays Zakat will enjoy
rebate for their income tax. But this amendment only covers an
individual.
How about a company?
Fatwa resolutions (Jakim,2009), it is an obligation to pay zakah on
business which fulfilled the following conditions:
1. Business owned by muslims( portions of muslim ownership if
partially owned)
2. Met the basic conditions of individuals obligations to pay, haul and
nisab
3. Genuinely owned wealth

Issues still debatable?

 Answer: Bank Balance Sheet
(with adjustments)
Please refer page 199-201 discussions in Prof Rahim (2010) book