Comparison profit & loss sharing between Mudharabah and Musharakah

Mudharabah

 profit
  • Such profit is shared based on agreement (profit and loss sharing)
loss 
  • Any losses will be borne by the owners of capital  (shahibul maal), given that the loss is not due to deliberate action of the fund manager (mudharib), while the fund manager suffers from loss of time, energy and mind. If the loss cause by the negligence of the fund manager (mudgarib), the fund manager must bear the loss.

Musharakah

profit
  • The profit-sharing is based on the mutually agreed percentage
loss
  • In the event of loss, it is bone jointly in accordance with the amount of capital each party has.


Reference: article on principle of justice in transaction based on profit and loss sharing in sharia banks by Trisadini Prasastinah Usanti, A.shomad & Ari Kurniawan

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