Towards A Unified Zakat System

this fact when he says:According to the four doctrines of Islam, Zakat is notdue on the equipment of production in all cases, whethertheir effects are left on the product or not. The same istrue when estimating the Zakat of a trader; containers ofgoods and work equipment are not considered part of theZakatpool.Assets of trade are financial items such as accounts inbanks, accounts receivable, and inventory turned over forthe purpose of growth. Production assets are the same asfixed assets in contemporary accounting practices. Theyconsist of assets held long term. These assets are notowned for the purpose of their own growth or for theintention of resale, rather they are held to support thebusiness. They include land, buildings, plant andequipment, and vehicles. Current assets (working capital)are subject to Zakat as long as they are equivalent to ormore than 85 grams of gold. Zakat has not been paid on themfor one year, and they are retained for the intention ofseeking profits and growth. Fixed assets, on the otherhand, are not subject to Zakat, as long as they are notheld for the purpose of trade (Al-Sultan, 1997).4.6.2 Current assets4.6.2.1 Cash and DebtorsCash and debtors. All narrated actions (actions told of141