A guide to zakat accounting
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A Guide TO Zakat Accounting . Prepared by Dr. Hussain Hussain Shehatah Professor of Accounting Faculty of Commerce, Al-Azhar University Consultant to Al-Zakat Funds. بسم الله الرحمن الرحيم. In the Name of Allah, The Most Merciful,The Most Compassionate. Zakat in The Holy Quran.

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A Guide TO Zakat Accounting

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A guide to zakat accounting

A Guide TO Zakat Accounting

Prepared by

Dr. Hussain Hussain Shehatah

Professor of Accounting

Faculty of Commerce, Al-Azhar University

Consultant to Al-Zakat Funds


A guide to zakat accounting

بسم الله الرحمن الرحيم

  • In the Name of Allah,

  • The Most Merciful,The Most Compassionate


Zakat in the holy quran

Zakat in The Holy Quran

قال الله تبارك و تعالي :

” و أقيموا الصلاة و أتوا الزكاة و اركعوا مع الراكعين ...“

( سورة البقرة : الآية 43 )

Allah says : “ and be steadfast in prayer ,practice regular Zakat and Bow down

Your heads with those who down …..

( Al-Baqara- 43 )


Zakat in the sunnah

Zakat in THe Sunnah

قال رسول الله صلي الله عليه وسلم :

” بني الإسلام علي خمس , شهادة أن لا إله إلا الله , وأن محمدا عبده ورسوله , وإقام الصلاة , و إيتاء الزكاة , وحج البيت , و صوم رمضان ”

( رواه البخاري ومسلم )


Zakat in sunnah cont

Zakat in Sunnah-cont.

The Messenger of Allah”( peace be upon Him ) said : “ Islam has been built on five pillars , Testifying that there is no God but Allah and Mohammed is the messenger of Allah, performing the prayers, paying the Zakat, making, the pilgrimage to the house of Allah , and fasting Ramadan “

( Buhkary and Muslim )


Zakat accounting topics contents of the book

Zakat Accounting Topics( Contents of the Book )

This Book deals with Fiqh and Accounting of Zakat (Alms) according to Islamic Jurisprudence . It consists of the following

Topics :

- Zakat Rules.( Fiqh ) .

- Zakat Accounting Rules( Principles ).

- Zakat Accounting Statements.

- Zakat Duers.


Chapter one

Chapter One

Zakat Rules

(Zakat Fiqh)


Zakat meaning

Zakat Meaning

Zakat means , in Language , : Blessing, Purity, Growth and Uprightness .

It means in Shariah :a defined allocating amount from a defined money for an assigned people .


Zakat and sadaqa

Zakat and Sadaqa

Zakat may called Sadaqa , Allah says :” of their properties ( money) take Sadaqa , that may Purify and sanctify them and pray on there behalf……..”

“خذ من أموالهم صدقة تطهرهم و تزكيهم بها وصل عليهم

* -The Word Sadaqah in this verse

refers to Zakat . But it sometimes refers to Charity .


A guide to zakat accounting

*-Accordingly , every Zakat is a Sadaqa

And a Sadaqa may be a Zakah or a Charity .


Zakat rules

Zakat Rulesأحكام الزكاة

Muslim Scholars have summarized Zakat Rules as follow :

- Zakat is a Farida from Allah (obligatory ).

- Zakat is a Financial Worship .

- Zakat is a Believe .

- Zakat is Compulsory to Muslims.

- Zakat is Due to an assigned Receivers.


A guide to zakat accounting

- Zakat is Annuity , except Zakat on Plants

and Fruits , and on Rakaz .

- No Zakat until Wealth exceeds Nisab

- No Duality in Zakat.

- Zakat affairs are the Responsibility

of Government.


A guide to zakat accounting

- Due Zakat does not obsolete .

- Zakat is Obligatory to Muslims any

where in the world.

  • -The Muslim who denies the Obligatory

  • of Zakat is a Non-believer ( Kafir) ,

  • and who refuses to pay it , is a Disobeyer.

  • -


Zakat and tax differences

Zakat and Tax Differences

-Zakat is a financial Worship ,and a pillar of Islamic Religion , but Tax is imposed by the Government by Low ragardless

to Religion.

- Zakat is based on Religious and Ethical

Values ,but Tax mostly ignores such

Values and based on monetary factors .-


A guide to zakat accounting

- Zakat is calculated according to Fiqh Rules , but Tax is calculated according to Governmental Rules.


A guide to zakat accounting

  • - Zakatable wealth is gained from Good and Halal Sources, but Tax Revenues and Incomes may be earned from Non-Halal and Worse Sources from the sight of Islam Rules .


A guide to zakat accounting

- Zakat Rules are stable and permanent

for each Time and place because they

excreted from Quran and Sunnah ,while

Tax Rules are variable.

- Zakat purifies soul and money ,while

Tax does not .


A guide to zakat accounting

Accordingly ,:

Tax is not a Zakat

Zakat is not a Tax


Chapter two zakat accounting rules

Chapter TwoZakat AccountingRules


A guide to zakat accounting

Zakat Accounting Meaning

It mans the calculation, reviewing and announcing of Zakat on money .It is governed by a group of Accounting rules, extracted from the sources of Islamic Shari’ah,


Zakat accounting objectives

Zakat Accounting Objectives

They are as follow:

- Determining the Zakat Base .

- Calculating the Due amount of Zakat .

- Preparing Zakat Statements and Reports .

- Distributing Due Zakat amongst

its Duers.


Zakat accounting rules principles

ZAKAT ACCOUNTING RULES( PRINCIPLES )

Zakat Accounting Rules are as Follow:


A guide to zakat accounting

Zakat is calculated according to the lunar year. Counting starts when the amount of money attains the Nisab (the minimum amount on which Zakat should be paid). This includes all kinds of Zakat except Zakat on agriculture, fruits, mineral assets and Rikaz (metals found in the earth).

1. The Lunar Year


2 independence of each year

2. Independence of each Year:

Each Zakat year is an independent one, and Zakat on a given amount of money should not be more than once in the same year. Duality should be avoided. The Prophet (Peace be upon him) said: “No duality in Zakat giving”.


3 actual or assumed growth

3 Actual or Assumed Growth:

Actual or assumed growth of an amount of money is a condition for any Zakat is to be given from this money. Therefore, Zakat is not due on fixed assets or things for personal use. This is because the condition of actual or assumed growth would not be met.


4 zakat base should reach nisab

4. Zakat Base should reach Nisab

Zakat is due on money which is abounding (more than basic needs). No Zakat is due for little amounts of money. The amount of money should reach the Nisab. This guarantees that only those who have the capacity of paying will be obliged to pay.


5 calculating zakat on the total or net zakatable money

5. Calculating Zakat on the Total or Net Zakatable Money

For every kind of money or activity there is a rule for calculation Zakat which is due on it. Some are calculated in relation to the total amount and others are calculated in relation to the net amount ( Property).


6 grouping money of the same kinds together as zakatable base

6. Grouping Money of the Same kinds together as Zakatable Base:

It is permissible to group cash money of wealth to cash money available from offers of commerce and other gained cash money, so that for all these monies there would be one Nisab and one Zakat Year.


7 evaluating zakatable money according to the current value

7. Evaluating Zakatable Money according to the Current value .

Evaluating cash money of wealth and cash money from offers of commerce to define the due Zakat should be according to the current value at the time of paying Zakat. They should not be evaluated according to the historic value, cost or market, whichever is less.


Equations of calculating zakat they are as follows

Equations of calculating ZakatThey are as follows :


A guide to zakat accounting

  • Receptacle of Zakat = Zakat Base =

  • Zakatable Money

  • ( Assets),( Less ) - Zakatable Liabilities which are due to be paid at the moment.


A guide to zakat accounting

2. Zakatable Money( Assets )=

Assets which meet the conditions of

obligatory Zakat.

3. Zakatable Liabilities =

which are due in

short time.

4. Due Zakat = Zakat Base By Zakat Rate


A guide to zakat accounting

Conditions of Zakatable Money

They are as follows:

a. It should be a full ownership.

b. It should be Growing actually or assumed


A guide to zakat accounting

c. The completion of one Lunar Year except for Zakat on agriculture, fruits, mineral wealth or Rikaz in earth.


A guide to zakat accounting

d. Not other kind of Zakat has been paid on the same Zakatable Money within the same year.

e. Zakatable Money should exceeds Basic Needs.


A guide to zakat accounting

f. Zakatable Money should not include a Debt which is due at the time.(short term Debts)

g. Zakatabe Base should reach the (Nisab).


A guide to zakat accounting

Conditions ofZakatable Liabilities

They are Short Term Liabilities which are due payment according to the following conditions :

  • Liabilities should be related

  • to the activity.


A guide to zakat accounting

b. Liabilities should be due payment during the coming

year .

c. Liabilities should be legally permissible .


A guide to zakat accounting

Nisab = the minimum amount of

Due Zakat

It is equal to 85 grams of pure gold. A gramshould be evaluated according to current prices at the time of paying Zakat in the country in which the original money is located.


A guide to zakat accounting

The Amount of Due Zakat

When Zakat Base money once reaches the Nisab , the Due Zakat is calcuated as follow : Zakat Base x the price of Zakat.


A guide to zakat accounting

The Price of Zakat =

Zakat Rate

It varies according to the kind of money and activity. It ranges between 2.5% and 20% of Zakatable Base.


Executive procedures for calculating zakat

Executive Procedures for Calculating Zakat


A guide to zakat accounting

Steps of Calculating Zakat

( Zakat Accounting Procedures )


Zakat should be calculated according to the following steps

Zakat should be calculated accordingto the following steps:

1. Defining the date completion the Lunar year. This date varies according to the circumstances of the Zakat giver ( Payer).


A guide to zakat accounting

With the exception of Zakat on agriculture, fruits, minerals and minerals in the earth. In these cases Zakat should given at time of harvest or the acquisition of the minerals.


A guide to zakat accounting

In the case of defending the Lunar year for the first time, the date of beginning and the date of completing should be defined according to the date of reaching the Nisab amount.


A guide to zakat accounting

2. Different Monies owned by the Zakat Payer should be assessed at

the end of year according to the rules of Zakat.

From this money it should be defined on which Zakat must be given. They are called Zakatable Money ( Assets).


A guide to zakat accounting

3. Assessment of Taxable Liabilities (deductions) which are due to be deducted from Zakatable money according to the rules of Zakat.


A guide to zakat accounting

4. Defining the receptacle of Zakat ( Zakat Base ) by the deduction of Due Liabilities from Zakatable Money by the following equation.

The receptacle of Zakat ( Zakat Base ) =

Zakatable Money – Due Liabilities.


A guide to zakat accounting

5- Calculating the Nisab as mentioned

before. Each kind of Zakat has a special Nisab .


A guide to zakat accounting

6. A comparison should made between the Zakat Base, defined in step 4 above, with Nisab defined in step 5. So as to know whether Zakat is due or not. If the Zakat Base has reached the amount of Nisab, then Zakat would be Due.


A guide to zakat accounting

7. Define the amount which should be taken from the receptacle of Zakat ( Zakat Base ), it is as a Percentage % , it is culled the Price of Zakat ,

It varies from 2,5% to 20% of

Zakat Base


A guide to zakat accounting

8. Calculating the amount of Zakat by multiplying the amount of the receptacle by the amount of the price (or percentage) of Zakat. The result should be the amount of due Zakat.


A guide to zakat accounting

9. Define who pays the due Zakat a

follow :

a. For individuals and personal establishments:

The individuals or the owner should pay the due Zakat.


A guide to zakat accounting

b. For partnership:

The amount of the due Zakat should be divided between the partners, each according to the percentage ofhis share in the capital of partnership.


A guide to zakat accounting

c. For investment companies:

The amount of the due Zakat should be divided on the number of shares to know the amount of Zakat due on each share. Each investor should then pay Zakat according to his ownership of shares.


A guide to zakat accounting

d. For partnerships of labor and capital(mudarabah Sahr’iyyah) :The laborer (Mudarib) pay Zakat according to his share of profits. Whereas the financier (Mumawwil) should pay Zakat on the capital and the profit less the laborer’s share.


A guide to zakat accounting

10. Zakat Amount should be distributed according to its duers in the light of the rules of Islamic Law (Shari’ah).


A guide to zakat accounting

It is permissible to give Zakat to institutes or committees of Zakat to redirect the funds in their due activities and persons according to Islamic Law (Shari’ah).


A guide to zakat accounting

Zakat Duers

Zakat Funds should be spent as mentioned in the Holy Quran:


A guide to zakat accounting

يقول الله سبحانه وتعالي :

” إنما الصدقات للفقراء و المساكين والعـاملين عليها و المؤلفــة قلوبهم وفـــــي الرقـاب و الغارمين وفي سبيل الله وابن السبيل فريضة من الله والله عليم حكيم ” ( سورة التوبة : 60 )


A guide to zakat accounting

“ Zakat are for the Poor, and the Needly,and

Those Employed to administer the funds, for those whose hearts have been recently reconciled to Truth , for those in Bondage and in Debt , In the cause of Allah , and the Wayfarer , Ordained by Allah , and Allah is full of knowledge and Wisdom . “

( Al Tawbah -60 )


A guide to zakat accounting

The Duers of Zakat as mentioned in this

Verse are as f0llow :

1. The poor.

2. The needy people.

3. Those employed to administer the Funds.


A guide to zakat accounting

4. Those whose hearts have been recently reconciled to Truth

5. Those in Bondage.


A guide to zakat accounting

6. Those in Debt.

7. In the cause of Allah.

8. The wayfarers.

We well discuss this in more

detail in chapter four


A guide to zakat accounting

Zakat Accounting

Tools and Methods


A guide to zakat accounting

In order to calculateZakat on money, an accountant needs the following tools and methods:

1. General Balance Sheet (Financial Position) made on the date of calculating Zakat.

2. Final Accounts for the ended year, on which Zakat is to be calculated.


A guide to zakat accounting

3. Clarifications concerning the Balance Sheet and the final accounts, such as:

- Current value of Zakatable assets.

- Bad and good debts to be baid.

- Bad and good debts to be collected.


A guide to zakat accounting

- Revenue from fixed assets which are for collecting or for investment.

- And other necessary clarifications concerning calculating Zakat.


A guide to zakat accounting

4. The price of Gold at the time when paying Zakat is due, in order to calculate the Nisab

5. Different Monies possessed by the Zakat giver should be grouped if they are of the same kind.


A guide to zakat accounting

6.Different contemporary Fatwas

concerning Zakat.

7. The guide for calculating Zakat.

8. Other accounting tools and methods which may be useful for calculating Zakat.


A guide to zakat accounting

The diagram in the following summarizes the procedure forcalculating Zakat on money.


Diagram for calculating zakat

Diagram for calculating Zakat

Starting Point

(1)

(2)

Prepare the general Balance Sheet and

clarifications on it

Define and assess the Zakat assets


A guide to zakat accounting

Define and assess liabilities which must be met

(3)

(4)

(5)

Define the receptacle of Zakat by deducing

(3) from (2)(Zakat Base )

Define the Nisab according to the price of gold


A guide to zakat accounting

Compare the receptacle of Zakat with the Nisab

(6)

(7)

(8)

Calculate the Due Zakat if the receptacle

reaches the Nisab

The Due Zakat = Zakat Base By Zakat Rate


Third chapter zakat accounting statements forms

Third ChapterZakatAccounting Statements ( Forms)


A guide to zakat accounting

This chapterincludes a number

of simplified accounting Statements to calculate Zakat on money and other activities in the light of information mentioned in the previous chapters.


A guide to zakat accounting

These statements are meant to be used as a guide for accountants when assessing the receptacle of Zakat, and when advising the Zakat giver, whether he is an owner of a personal establishment or a partner with others in a private company or a share holder in an investment company.


A guide to zakat accounting

The Statements are as follows:

1. A Statement to calculate Zakat on wealth in cash.

2.A Statement to calculate Zakat on Commerce and Industrial Wealth.


A guide to zakat accounting

3. A Statement to calculate Zakat on Plants and Fruits.

4. A Statement to calculate Zakat on Cattle.


A guide to zakat accounting

5. A Statement to calculate Zakat on mineral and marine wealth, and minerals in the earth.

6. A Statement to calculate Zakat on Revenues from Investment in Fixed Assets.


A guide to zakat accounting

7. A Statement to calculate Zakat on revenue from Labor.

8. A Statement to calculate Zakat on revenue from Freelance Work.


1 zakat accounting statements on cash wealth

(1)Zakat Accounting Statements on Cash wealth)زكاة الثروة النقدية )


A guide to zakat accounting

Zakat on cash wealth includes:Banknotes, Coins, Silver, Gold Money as well as Ingots of gold, Current Accounts in Banks and Investment Accounts in Banks and Investments in Shares and Bonds and Like Investments.


A guide to zakat accounting

The Nisab for cash wealth is 85 grams of pure gold, or its equivalent in cash, or 595 grams of pure silver. The Islamic Commission for Research has recommended to use the Nisab in gold.


A guide to zakat accounting

The Zakat Rate on Cash Wealth is 2.5%

The Amount of Due Zakat=

Zakat Base by Zakat Rate


A guide to zakat accounting

The calculation steps are as follows:

a. Define the time when the Zakat is due (Al-Hawl), which starts from the time when the amount of money reaches Nisab.


A guide to zakat accounting

b. Define all items of Cash Wealth, on which Zakat must be paid (Zakatable Money).

c. Asset all items of cash wealth according to market value at the time when Zakat is due.


A guide to zakat accounting

d. Deduct all Liabilities on the Zakat giver from his cash wealth so that to know the receptacle of Zakat.( Zakat Base ).


A guide to zakat accounting

e. Compare between the receptacle of Zakat and the Nisab, which is equivalent to 85 grams of gold according to the market value. If the receptacle reaches the Nisab, then Zakat is due to be paid.


A guide to zakat accounting

f. Calculate the amount of Zakat by multiplying the receptacle by the price of Zakat, which is 2.5%.

The following statement shows an example of calculating Zakat on cash wealth:


Zakat statement on cash wealth for the year ended

Zakat Statement on Cash Wealth for the year ended / /


Zakat statement on cash wealth for the year ended continue

Zakat Statement on Cash Wealth for the year ended / / (Continue)


Zakat statement 0n cash wealth for the year ended continue

Zakat Statement 0n Cash Wealth for the year ended / / (Continue)


2 accounting zakat statements on trading and industrial wealth

(2)Accounting Zakat Statements on Trading and Industrial Wealth(زكاة عروض التجارة والصناعة )


A guide to zakat accounting

This Zakat is imposed on Wealth for Trading which is to be bought or sold with the intention of Trading to earn a profit.


A guide to zakat accounting

Goods (properties ) for acquisition and personal use and not for selling or trade are not Zakatable. No Zakat, therefore, are due on them, as they are not added to Zakat Base

such as :

Fixed Assets and

Personal Assets for use .


A guide to zakat accounting

The definition of receptacle of Zakat (Zakat Base ) on Wealth for trading and calculating their amount should be done according to the following steps:


A guide to zakat accounting

a) Define the end of the Zakat year. Which may be the same date as the end of the financial year for an establishment or a company.

b) Define and assess the elements of Zakat such as goods, duties, documents of payment, investments in stock for trading and cash in banks and cash in safe ..etc.


A guide to zakat accounting

c) Define and assess the elements of immediate current liabilities which are due for payment from the Zakatable Wealth.

d) Define the Receptacle of Zakat ( Zakat Base ) by deducing the current liabilities (item c) from the Zakat assets (item b) and add any earned money

(if applicable).


A guide to zakat accounting

e) Define the amount of the Nisab, which is the equivalent to 85 grams of gold , and then compare with the receptacle of Zakat

f) Calculate the amount of Zakat. If the receptacle reaches the Nisab, Zakat should be calculated as 2.5% in the case of a lunar year, and 2.577% in the case of a solar year.


A guide to zakat accounting

The following statement shows a form for calculating Zakat on Trading Wealth and the question of other trading activities such as industrial activity:


Zakat statement on trading and industry wealth for the year ended

Zakat Statement on Trading and Industry Wealthfor the year ended / /


Zakat statement ontrading and industry wealth for the year ended

Zakat Statement onTrading and Industry Wealth for the year ended / /


Zakat statement ontrading and industry wealth for the year ended continue

Zakat Statement onTrading and Industry Wealthfor the year ended / / (Continue)


3 zakat accounting statement on plants and fruits

(3)Zakat Accounting Statement on Plants and fruits) زكاة الزروع والثمار )


A guide to zakat accounting

What is meant by agriculture is anything which comes out of the earth and is planted by seeds, from which man, animal and bird feed. And, by fruits everything which trees carry which is to be eaten.


A guide to zakat accounting

Zakat on agriculture and fruits are due at the time of harvest or collecting, according to Allah’s instruction:

قال الله تبارك و تعالي : ( وآتوا حقه يوم حصاده )

“…but render the dues that are proper on the day that harvest is gathered”

(Al-An’am, or Cattle, 141)


A guide to zakat accounting

Therefore, if an area of land produces more then one crop within the year, its owner should render zakat on each crop separately.


A guide to zakat accounting

The following are steps of Calculating the Zakat of Zakat on agriculture and fruits and calculating their Due amounts:


A guide to zakat accounting

a) Measure the total production of the land either by production quantity or cash.

b) Define the expenses on the production, if the opinion adopted is that which says that expenses should be deduced as far as they do not exceed the third, which is the opinion of the Sixth Fiqh Seminar of Barakah.


A guide to zakat accounting

c) Define the Zakat Base by deducing (item b) from the (item c).

d) Define the amount of the Nisab,which is equivalent to 5 Awsaq, or the equvalent to 50 Egyptian Kaylah, or 653 kg of wheat

d) Define the Zakat Rate according to the Method of Watering , 5% or 10% .


A guide to zakat accounting

e) Calculate the amount of Zakat as follows:

- In the case of watering by cost:

Amount of Zakat =

Zakat Base x 5% = ……

- In the case of watering without cost:

Amount of Zakat =

Zakat Base x 10% = ……


A guide to zakat accounting

The following statement shows a form for calculating Zakat onPlantsandfruits:


Zakat statement on plants and fruits for the crop

Zakat Statement on Plants and fruits for the crop……


Zakat statement on plants and fruits for the crop continue

Zakat Statement on Plantsand Fruits for the crop……(Continue)


4 an accounting statement for zakat on cattle

(4)An Accounting Statement for Zakat on Cattle)زكاة الأنعام )


A guide to zakat accounting

What is meant by cattle is camels, cows, sheep. Zakat is due on them only if they are bred for multiplication on cattle differs according to the kind of species. For camels it is five, for sheep it is forty, whereas for cows it is thirty. One should refer to Fikh books for more details.


A guide to zakat accounting

The following steps should be followed to assess the receptacle of Zakat on cattle and to calculate its value at the end of the year:


A guide to zakat accounting

a) Define the number of cattle, deducing the working animals and the ones ready for trade (for which there is a different way of calculating Zakat.


A guide to zakat accounting

b) Compare the number with Nisab. If it is less than the Nisab, then no Zakat is due.

c) Define which category the number falls into, in order to define the amount of due Zakat.


A guide to zakat accounting

d) Define the Zakat due according to tables in Fiqh books.

We include on next Slide a form for calculating the Zakat on cattle.


Zakat statement on cattle for the year ended

Zakat Statement on Cattle for the year ended / /


Zakat statement on cattle for the year ended1

Zakat Statement on Cattle for the year ended / /


A guide to zakat accounting

(5) An Accounting Statement for Zakat on mineral and marine wealth and minerals in the earth( زكاة الركاز والمعادن )


A guide to zakat accounting

Mineral and marine wealth include anything of value which is brought out from the earth or the bottom of rivers, seas or oceans. Minerals in earth (Rikaz) are treasures which are buried in the earth.


A guide to zakat accounting

The Nisab for minerals and marine wealth is the same as the Nisab for cash wealth, i.e., the equivalent to 85 grams of gold. On the other hand, Zakat is due on minerals in the earth regardless of their quantity. For both categories there is no need to wait until a year ends.


A guide to zakat accounting

The following steps are for defining the receptacle of Zakat on minerals and marine wealth:


A guide to zakat accounting

a) Define the net production from the earth or sea, on which Zakat must be paid.

b) Compare the net production with the Nisab (the equivalent to 85 grams of gold) in the case of mineral wealth. For Rikaz there is no Nisab.


A guide to zakat accounting

c) Calculate the amount of Zakat, if the receptacle reaches the Nisab, the basis of 2.5% for minerals and 20% for Rikaz.

We include on next slide a form for calculating the Zakat on mineral and marine wealth.


Zakat statement on mineral wealth for operation number dated on

Zakat Statement on mineral wealth for operation number …… dated on……


Zakat stateent on mineral wealth for operation number dated on continue

Zakat Stateent on mineral wealth for operation number …… dated on……(Continue)


A guide to zakat accounting

* Zakat on mineral and marine wealth after the completion of production sorting, purification or cleaning and preparation for sale.

Machinery, manpower and other expenses of production are not be deduced.


6 an accounting statement for zakat on revenue of fixed assets

6 An Accounting Statement for Zakat on revenue of Fixed Assets( زكاة المستغلات )


A guide to zakat accounting

It is a Zakat on revenue from investing Fixed Assets reoccurring, such as real estate, cars and others.


A guide to zakat accounting

No Zakat is due on the actual assets because they are of the same category as assets obtained for establishments (fixed assets). Zakat, however is due on their revenue once these revenues reach the Nisab, after deducing actually paid expenses and debts which are currently due.


A guide to zakat accounting

Receptacle of Zakat on investment assets is calculated by deducing actually paid expenses and debts which are currently due from revenue

Due Zakat is calculated according

to the following steps :


A guide to zakat accounting

a) Define the total annual revenue at the end of year.

b) Define all expenses of getting the revenue.


A guide to zakat accounting

c) Deduce expenses which are actually paid from the total revenue to define the net revenue, on which Zakat must be paid.


A guide to zakat accounting

d) Deduce currently due debts which the Zakat giver must pay and also the cost of original matters, if they were not deduced from any other receptacle of Zakat.


A guide to zakat accounting

e) The net of all the above should be added to any cash and trade goods owned by the Zakat giver and on which no Zakat is paid at the end of the year to ascertain the receptacle.(Zakat Base ) .


A guide to zakat accounting

f) Compare receptacle (e) with the Nisab, which is the equivalent to 85 grams of gold. If the receptacle reaches the Nisab, then Zakat should be calculated on the basis of 2.5%, which is the chosen opinion for the present guide.


A guide to zakat accounting

The Following is a Statement for Zakat on Revenue from Investment Fixed Assets


Zakat statement on revenue from fixed assets in the year which is ending continue

Zakat Statement on Revenue from Fixed Assets in the year which is ending / / (Continue)


Zakat statement on revenue from investment fixed assets in the year which is ending continue

Zakat Statement on Revenue from Investment Fixed Assets in the year which is ending / / (Continue)


Zakat statement on revenue from investment fixed assets in the year which is ending continue1

Zakat Statement on Revenue from Investment Fixed Assets in the year which is ending / / (Continue)


7 an accounting statement for zakat on revenue from work

7. An Accounting Statement for Zakat on revenue from Work( زكاة كسب العمل )


A guide to zakat accounting

This category includes wages, salaries, income from freelance work and won money. Zakat must paid on what remains of this money at the end of the year by adding it to other monies owned by the Zakat giver when calculating the Nisab and the Zakat year.


A guide to zakat accounting

The following are the steps to define the receptacle of Zakat and to calculate what is due at the end of year:


A guide to zakat accounting

a) Define what remains from the revenue at the end of the year after deducing what is actually paid from costs of basic needs and after paying outstanding debts, if there were any which were not deduced from other receptacles of Zakat.


A guide to zakat accounting

b) Compare what remains in step (a) with the Nisab (85 grams of gold) to know whether Zakat is due ornot.

c) Calculate the amount of Zakat if the receptacle reaches the Nisab, on the basis of 2.5%.


A guide to zakat accounting

The Following is a Statement for calculating Zakat on revenue from work.


Zakat statement on revenue from work in the year which is ending

Zakat Statement on Revenue from Work in the year which is ending / /


Zakat statement on revenue from work in the year which is ending continue

Zakat Statement on Revenue from Work in the year which is ending / / (Continue)


Zakat statement on revenue from work in the year which is ending continue1

Zakat Statement on Revenue from Work in the year which is ending / / (Continue)


8 an accounting statement of zakat on revenue from freelance professions

(8) An Accounting Statement of Zakat on revenue from Freelance Professions( زكاة المهن الحرة )


A guide to zakat accounting

The following are the steps to define and measure the receptacle of Zakat on revenue from freelance professions:


A guide to zakat accounting

a) The professional should define a date for ending the Zakat year, which may be the end of the financial year for example.

b) Calculate all direct revenues from practicing the profession from the beginning to the end of the Zakat year.


A guide to zakat accounting

c) Define expenses and costs which were actually spent in order to get the revenue from practicing the profession.

d) Define the basic needs for the Zakat giver and his dependants which were actually spent during the year.


A guide to zakat accounting

e) Define the debts which were paid by the Zakat giver during the year (if there were any).

f) Define the receptacle of Zakat by deducing (b, c, d, e,) from (a).


A guide to zakat accounting

g) Compare the receptacle from the previous step with the Nisab (85 grams of gold).

h) Calculate the amount of Zakat if the receptacle reaches the Nisab on the basis of 2.5%.


A guide to zakat accounting

A Statement for calculating Zakat on revenue from freelance professions is on next slide. A form for calculating Zakat on revenue from freelance professions is on next slide.


Zakat statement on revenue from freelance professions in the year which is ending

Zakat Statement on Revenue from Freelance Professions in the year which is ending / /


Zakat statement on revenue from freelance professions in the year which is ending continue

Zakat Statement on Revenue from Freelance Professions in the year which is ending / / (Continue)


Chapter four

CHAPTER FOUR

ZAKAT DUERESMASARIF AL-ZAKAT


Zakat duers in quran

Zakat Duers in Quran

  • للزكاة مصارف محددة من قِبَلَ الله عز وجل ، كما ورد فى قوله سبحانه وتعالى :إِنَّمَـــــــا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِوَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَوَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِّنَ اللَّهِ وَاللَّهُ عَلِيمٌحَكِيمٌ [سورة التوبة : 60] .


A guide to zakat accounting

“ Zakat are for the Poor, and the Needly,and

Those Employed to administer the funds, for those whose hearts have been recently reconciled to Truth , for those in Bondage and in Debt , In the cause of Allah , and the Wayfarer , Ordained by Allah , and Allah is full of knowledge and Wisdom . “

( Al Tawbah -60 )


Zakat duers masarif

Zakat Duers ( Masarif )

The Duers of Zakat as mentioned in the Holy Quran are as f0llow :

1. The Poor.Those are under the standard

of Living ,i.e. They suffer in finding the

essencials of basic live .

2. The Needy people: Those are under the

normal standard of live .

3. Those employed to administer the Funds.


Zakat duers cont

Zakat Duers- cont.

4. Those whose hearts have Been recently reconciled to Truth and become Muslim.

5. Those in Bondage., such as to free

Muslim Prisoners .


A guide to zakat accounting

6. Those in Debt: such as those

whom are Debaters and unable

to pay their Debts .

7. In the cause of Allah: for Gihad

to make the word of Allah is the

Hiarer , and who Fight for Islam


A guide to zakat accounting

8- The Wayfarer : Travellers Whom their Money has been lost oir finished .


Zakat duers in the sunnah

Zakat Duers in The Sunnah

يقول رسول الله صلي الله عليه سلم :

” .... تؤخذ من أغنيائهم فترد إلي فقرائهم ...“ ( مسلم )

” The Prophet ( PBUH. ) said : Take from the Rich among them and paid it to the Poor among them ….( related by Moslim)


Zakat duers rules

Zakat Duers Rules

Muslim Scholars have summarized the main Rules of Zakat Dures as follow :

1- The Poverty : those under Living

Standard

2- The Needy : those who need for

satisfy the essentials of Living


A guide to zakat accounting

3- Zakat Funds should not be paid to rich

people or to any person able to work .

4- Zakat Funds should not be given to

Relatives whom the Zakat payer is

compulsory to spend, such as Parents

5- It is permitted to transfer Zakat Funds

from place to another for Poor Relatives.


A guide to zakat accounting

  • 6- It is permitted to give Zakat Funds to

  • the following :

  • * Poor Students

  • * Poor Silly People

  • * Poor Relatives

  • * Poor Coming to Marriage

  • * Poor Orphans


A guide to zakat accounting

  • 7- It is permitted for the Wife to give here

  • Zakat Fund to here poor Husband

  • and it is not permitted for the Husband

  • to give his Wife his Zakat Fund .

  • 8- It is permitted to give Zakat Funds to

  • Social and Religious Societies


A guide to zakat accounting

  • 9- It is permitted to transfer Zakat Funds

  • to Mugahideen ( Holy Strugglers for

  • the cause of Allah ) abroad .

  • 10-It is permitted to pay Zakat Funds to

  • Islamic Societies and Establishments which struggle against the Enemies of Islam.


A guide to zakat accounting

  • 11- It is allowed to pay Zakat in Advance

  • but not permitted to delay it except there is a Legistrate Necessity .

  • 12- When you are intended to pay Zakat

  • you should to make Niyya and pray

  • Allah and Praise Him .


Finished

Finished

  • و الحمد لله الذي بنعمته تتم الصالحات

  • Praise may be to Allah


Zakat accounting glossary

Zakat Accounting Glossary

Compiled By

Dr. Hussien Hussien Shehata

Professor of Accounting

ِAl-Azhar University


A guide to zakat accounting

  • الزكاة Zakat

  • قواعد ( أحكام ) الزكاةZakat Rules

  • مفاهيم الزكاةZakat Concepts

  • أسس الزكاةZakat Principles

  • وعاء الزكاةZakat Base

  • نسبة ( معدل) الزكاةZakat Rate

  • نماذج الزكاةZakat Forms

  • قائمة الزكاةZakat Statement

  • مقدار الزكاة الواجبةZakat Due


A guide to zakat accounting

  • تقرير الزكاةZakat Report

  • دافع الزكاة( المزكي )Zakat Payer

  • معدلات الزكاةZakat Rates

  • قانون الزكاةZakat Law

  • مقدار الزكاةZakat Amount

  • ثواب الزكاة Zakat Reward

  • تحصيل الزكاةZakat Collection

  • أداء الزكاةZakat Payment

  • حصيلة الزكاةZakat Receipts


A guide to zakat accounting

  • دافع الزكاةZakat Payers

  • مستحقي الزكاةZakat Duers

  • المتهرب من الزكاة( مانع الزكاة )Zakat Evaders

  • منكر الزكاة ( جاحد الزكاة ) Zakat Denier

  • العامل علي الزكاةZakat Administrator

  • مصلحة الزكاةZakat Authority Unit

  • مصلحة الزكاةZakat Authority Agent

  • مذكرة الزكاةZakat Memorandum

  • فقهاء الزكاةZakat Scholars


A guide to zakat accounting

  • محاسبواالزكاةZakat Accountants

  • المراجع الشرعي للزكاةZakat Shariah Auditor

  • بطاقة الزكاةZakat Card

  • ملف الزكاةZakat File

  • فترة الزكاةZakat Period

  • مؤشر الزكاةZakat Index

  • معايير الزكاةZakat Standards

  • وعاء الزكاةZakat Base

  • قوانين الزكاةZakat Laws


A guide to zakat accounting

  • نصاب الزكاةZakat Nisab

  • الزكاة الواجبةZakat Due

  • معفى من الزكاةFree form Zakat

  • زكاة مدفوعة مقدماZakatPre-paid

  • زكاة مدفوعة مقدماFore ward Zakat

  • زكوي( صفة )Zakatable الوعاء الزكويZakatable Base

  • الثروةالزكويةZakatable Wealth

  • المعدل الزكويZakatable Rate


A guide to zakat accounting

  • الايرادات الزكويةZakatable Revenues

  • الملف الزكويZakatable File

  • البطاقة الزكويةZakatable Card

  • الخصومات الزكويةZakatable Deductions

  • المسموحات الزكويةZakatable Allowances

  • النصاب الزكويZakatabl Limit

  • صافى الثروة الزكويةZakatable Net Wealth

  • نظام الزكاةZakat System

  • وحدات النظام الزكويZakat System Units


A guide to zakat accounting

  • أجزاء النظام الزكويZakat System Parts

  • زكاة المالZakat on Money

  • الزكاة على الدخلZakat on Income

  • الزكاة على الايراداتZakat on Revenues

  • الزكاة على الثروة النقديةZakat on Cash Money

  • الزكاة على الثروة التجاريةZakat on Commercial Wealth

  • الزكاة على الثروة الصناعيةZakat on Industrial Wealth

  • الزكاة على الثروة العقارية Zakat on Real Estate Wealth

  • زكاة الأنعامZakat on Livestock

  • زكاة الزروع والثمارZakat on Plants and Fruits


A guide to zakat accounting

  • زكاة الأنعامZakat on Livestock

  • زكاة الزروع والثمارZakat on Plants and Fruits

  • زكاة على المرتباتZakat on Salaries

  • الزكاة على الاستثمارات العقارية

    Zakat on Investment in Real Estate

    Properties

  • الزكاة على إيرادات العقارات المؤجرة

    Zakat on Revenues From Real

    Estate Properties

  • الزكاة على إيرادات المهن الحرة

    Zakat on Revenues from Non-Professional Activities


A guide to zakat accounting

  • الزكاة علي الحليZakat on Jewelry

  • الزكاة علي الديونZakat on Debts

  • الزكاة علي الأسهمو السندات

    Zakat on Stocks and Bonds

  • زكاة المستغلات Zakat Al-Mustaghalat

  • محاسب زكويZakat Accountant

  • الدفاتر المحاسبية الزكويةZakat Accounting Books

  • السجلات المحاسبية الزكوية

    Zakat Accounting Records

  • مفاهيم المحاسبة الزكوية

    Zakat Accounting Concepts


A guide to zakat accounting

  • تقارير المحاسبة الزكوية

    Zakat Accounting Reports

  • مبادئ المحاسبة الزكوية

    Zakat Accounting Principles

  • إجراءات المحاسبة الزكوية

    Zakat Accounting Procedures

  • جداول المحاسبة الزكوية

    Zakat Accounting Schedules

  • قوائم المحاسبة الزكوية

    Zakat Accounting Statements


A guide to zakat accounting

  • عمليات المحاسبة الزكوية

    Zakat Accounting Operations

  • أساليب المحاسبة الزكوية

    Zakat Accounting Techniques

  • طرق المحاسبة الزكوية

    Zakat Accounting Methods

  • فحص زكويZakat Investigations

  • تقييم / تقدير الزكاةZakat Appraisal

  • تحديد الزكاةZakat Determination

  • تقدير الزكاةZakat Assessment

  • قياس الزكاةZakat Measurement


A guide to zakat accounting

  • تخفيض الزكاةZakat Reduction

  • الافصاح الزكويZakat Declaration

  • تقدير الزكاةZakat Estimation

  • التقدير الحكمى للزكاة( الخرص)

    Zakat Subjective Evaluation

  • تقدير الزكاةZakat Judgment

  • قبول الزكاةZakat Acception

  • تعديلات فى الاقرار الزكوي

    Zakat Declaration Adjustments

  • المراقب الزكويZakat Controller


A guide to zakat accounting

  • المراجع( المدقق ) الزكويZakat Auditor

  • الفاحص الزكويZakat Investigator

  • الفاحص الزكويZakat Inspector

  • التقرير السنوى الزكويZakat Annual Report

  • الموقف الزكويZakat Position

  • النماذج الزكويةZakat Forms

  • التقرير الشرعي للزكاةZakat Shariah Report

  • مؤسسة الزكاةZakat Establishment

  • بيت شؤون الزكاةZakat Affairs House


A guide to zakat accounting

  • مستلمي الزكاة ( مستحقي )Zakat Receivers

  • الهيئة الشرعية للزكاة

    Zakat Shariah Authority Committee

  • الفقيه الزكوي Zakat Scholar

  • فقه الزكاةZakat Fiqh

  • الزكاة في القرآن الكريمZakat in Quran

  • الزكاة في السنة Zakat in Al-Sunnah


Zakat receivers

Zakat Receivers

  • مصارف الزكاة Zakat Receivers.

  • مستحقي الزكاة Zakat Duers

  • الفقراء The Poor

  • المساكين The needy

  • العاملين عليها The Administer of Funds

  • المؤلفة قلوبهم Whose Hearts have been

    reconciled to Truth


A guide to zakat accounting

  • في الرقاب Those in Bondage

  • الغارمون Those in Debt

  • في سبيل الله In The Cause of Allah

  • إبن السبيل Wayfarer


A guide to zakat accounting

  • القرآن الكريم The Holy Quran

  • الحديث الشريف Tradition

  • آية من القرآن A Verse of the

  • حديث صحيح Correct Hadith

  • الفقه الإسلامي Islamic Jurisprudence

  • الحلال Legitimate=Halal

  • الحرام Forbidden=Haram


Finished1

Finished

Praise be to Allah

الحمد لله الذي بنعمته تتم الصالحات


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