Minggu, 03 Juli 2011

Common Questions about Calculating Zakat

1. An employee saves a certain amount from his monthly salary. How can he calculate the amount of Zakah due on his savings, bearing in mind that some of the savings have not been in his possession for a full year? If a man has an amount of money on which Zakah is payable, which has been in his possession for a full year, and due to inheritance, gifts, savings or bonuses this amount increased, should include this increment in the total sum on which Zakah is payable, regardless of whether this increment has been in his possession for a full year or not. 2. How is the amount of Zakah on gold and silver estimated? In case gold is not fully pure, we may make use of the following equation to find out the total amount of fine gold after leaving out the weight of other substances: weight...

Calulating Zakah on Other Items

Calculating Zakah on Works Under Construction Standard accounting definition and evaluation: These are in progress construction projects, such as the construction of buildings and reclamation of lands. These may be converted, after completion, to fixed or interchangeable assets according to the goals of the project. These are evaluated on the basis of the construction costs until the date of preparing the budget. This may include the price of the land, costs for of the architect drawings, licenses, raw materials and labor. These are not considered as consumed until the work is done and the property is ready for use. Evaluation and legal judgment: If the intent of the projects under construction is to be used in the operating process, i.e. they become possession...

Calculating Zakah on the Items of Revenue List

* Standard accounting definition and evaluation: Revenues list is prepared at the end of certain periods and generally at the end of the fiscal year. This process is called profit and loss accounting. * Evaluation and Legal Judgment Revenues must be estimated in accordance with the generally accepted legal rules concerning earnings, especially those related to what is lawful and what is prohibited. Ill-gotten revenue should be excluded from the base of Zakah. In addition, the expenditure should be governed by the related general legal rules, i.e. to spend without either squandering or miserliness. The items included in the revenue statement do not affect Zakah directly. Rather, the base of Zakah is affected by the commitments to be deducted, as will be shown later....

Calculating Zakah on Liabilities

These are the liabilities of Companies or Establishments due to others. They include long and short term loans, creditors, notes payable, bank accounts (overdrafts), mature expenses, prepaid revenues, due taxes, prepaid guarantees, dividends payable and the like. 1. Long-term liabilities Standard accounting definition and evaluation: These represent liabilities on the Establishment or the Company's part to others whose payment date is not less than a fiscal year, such as the long term loans, documents and notes payable. They are evaluated on the basis of the face value, which may include interest if it has not been paid yet. These liabilities are divided among the ownership rights and the exchanged commitments. Evaluation and legal...

Calculating Zakah on Current Assets

Current assets represent those owned for exploitation in trade; to be resold in order to make a profit, and not for earning revenue as is the case with fixed assets (durable goods). The most important items of the current assets are the following: Merchandise stock (end-term goods, accounts receivable, notes receivable, insurance, pledges, payments in advance on contracts, amounts paid in advance, expenditures paid in advance, receivable profits, deposits, accounts in banks and cash in a monetary fund). We are going to deal with the standard accounting definition and evaluation as well as the legal judgment and evaluation of these items from the prospective of Zakah. ...

Calculating Zakah on Long-Term Investments

These are funds invested in various assets. Establishments make these investments when there is a surplus in their funds after financing basic activities. The goal behind these investments is either to earn revenue or just to enter into trade. Long-term investments include the following: 01. Investment in bank notes. 02. Investment in real estates. Evaluation and legal judgment of these investments depends on their types. ...

Page 1 of 1012345Next
 
Design by Free WordPress Themes | Bloggerized by Information Of THings - Free Blogger Templates