Suppose a ginning factory owns a building worth Rs. 22 million and plant and machinery worth Rs. 2 million. Its staff costs Rs. 50,000 per month. A bank provides Rs. 5 million through partnership (مشاركة) for one year.
The partnership should bear the direct production costs of that financed year, not automatically the full historical cost of the factory's long-term assets and staff.
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Partnership (مشاركة): Sharing Gross Profit
Suppose a ginning factory owns a building worth Rs. 22 million and plant and machinery worth Rs. 2 million. Its staff costs Rs. 50,000 per month. A bank provides Rs. 5 million through partnership (مشاركة) for one year.
The partnership should bear the direct production costs of that financed year, not automatically the full historical cost of the factory's long-term assets and staff.