At the end of the term, actual aggregate profit is known. Total daily products are compared, producing an average profit per rupee-day. Each investor's daily products then determine his share of the investors' profit pool. The method allocates actual profit; it does not guarantee a return.
For banking practice, the rule must also be workable in accounting and monitoring. The aim is to preserve genuine risk-sharing while using a method that can be audited and applied consistently.
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Running Partnership (مشاركة) and Daily Products
At the end of the term, actual aggregate profit is known. Total daily products are compared, producing an average profit per rupee-day. Each investor's daily products then determine his share of the investors' profit pool. The method allocates actual profit; it does not guarantee a return.
For banking practice, the rule must also be workable in accounting and monitoring. The aim is to preserve genuine risk-sharing while using a method that can be audited and applied consistently.