askaribank paecntnniaiacrenomeseaacsilts Islamic Banking Services Division Shariah, Guidelines Accounting Treatment of Salam Finance Page No: Page | of 2 Date: Queries To: Islamic Asset Facilities / Shariah Compliance The accounting treatment of Salam transactions is as follows; accounted for as follows: Dr Salam Financing, XXXX. cr Customer Non Chequing Account Dr Customer Non Chequing Account xxx cr Customer Account 2 will be accounted for as follows: Dr Inventory — Salam Financing XXXX cr Salam Financing eo will be accounted for as follows: Dr Customer Non Chequing Account xxx cr Income on Salam Financing cr Inventory — Salam Financing 4 If Salam Goods will be insured after delivery, the transa Dr Pre-paid Insurance XXX, Cr Customer Non Chequing Account Dr Customer Non Chequing Account xxx cr Outward Lodgment 1- At the time of payment to the client for the purchase of Salam goods, the transaction will be XXXX XXXX At the time of delivery of Salam Goods in accordance with the Salam contract, the transaction XXXX At the time of sale of Salam Goods in accordance with the agency agreement, the transaction XXX, XXX, ction will be accounted for as follows: XXX,askaribank Islamie Banking Services Shariah Guidelines ‘Page No: Page 2 of 2 Accounting Treatment of Date: Salam Finance ‘Queries To: [Blamic Asst Facilities / Shariah Compliance All other conditions of Islamic Assets Fa Dr Outward Lodgment XxX. cr P.0/DD XXX If customer fails to deliver the Salam Goods in accordance with the Salam contract on time the penalty charges transaction will be accounted for as follows: Dr Customer Non Chequing Account xxx Cr Charity Payable sox If Salam Goods sold at lower price than the Salam Capital or Bank face loss after receipt of Salam Goods transaction will be accounted for as follows: Dr Customer Non Chequing Account xxxx cr Loss on Salam Financing XXXX. cr Salam Financing 200K ies Manual remain effective / un-changed.