Do you think Cristiano Ronaldo is a bad influence in that dressing room? Mambea Cristiano Ronaldo, mimi in tabulem coach. Because right from the start, Cristiano lo ambea what he needs. What did he say that he needs? Cristiano needed a transfer. Eriktan Haag, ame Kampale, akuna taktik zake, kuna bina na takachese. This guy Cristiano Ronaldo, this guy has won almost everything in football apart from the world cup. Kuchaki kama na kuna taktik zake zina na anza. Why can't you embrace, be a sign of unity in this dressing room? One sign of this unity in that dressing room, Wali Toa, in Pogba. Why can't you get behind this coach and his tactics? Then Musaidi team kukuin.  Wali shinwa, batukengali a position wise. Manchester will kwaju. Ya will kwaju. Look at the way you will concede the second goal. They were trained to play from the back. That team ikawa press. This is a team that ikuna has structure been won. As of now. It is a painful process that that guy at Kukapale. But kuna ma players wana kata kuchezele game. Don't you think so? Another game of the week, the big one ladies and gentlemen, we have Manchester United, former great Manchester United. Now, you want to talk about that. Onajiwa, onajiwa. Onajiwa, onajiwa. Onajiwa, onajiwa. Onajiwa, onajiwa. Onajiwa, onajiwa. Onajiwa, onajiwa. Onajiwa, onajiwa. Onajiwa, onajiwa. Manchester United v. Liverpool. Shetani we kundo. Ah, me pato we kundo. Santos. Yeah, yeah. Manchester United at Old Trafford v. Liverpool. This was once a cracker of a game. It's still. It's still. What makes you think so? The spirit of the fans still remains the same. The spirit of the fans. Bro, these are matches aside that in their first game, they were not beaten. They were worked. Chisiwa iswa isli, bro. That's chiswa iswa. This people outside there. The second game, they were not even worked. They were humiliated. They were thumped. They were thumped. You see, these are matches aside that has one of the best players. They have Cristiano, the best player. They have one of the best coaches. Eriktin Haag, Rashford, Sancho, Midfield. Any day is everybody in this team. Why do you still believe that this thing is a cracker? Why do you still believe that this is a game that must have come from Chelsea? Oneeza biawatu ni neti amaze to see ndeku fani ishubu, ndeku onee man, Chester United v. Liverpool. Oneejuwa akuna traditions was a die. Which one? Like number one. Spass v. Asenwa. It doesn't matter spass work no. 20 or no. 15. It doesn't matter how asenwa is performing. Anytime spass onea kutana asenwa. Ina konga game gini big isana. Kusabu ni tradition. Ina. Kuna iu rivalry. Rivalry man Chester United v. Liverpool. It is there to stay. Whether these teams are on top form or they are not. So, iu rivalry man Chester na Liverpool. De na fani game badina kwa na iu spiriti. First game. First two games. Man Chester United wona pale. They've lost all the games. Liverpool on the same side. They've not won a game since Premier League games they've drawn. No na. Onee na pale kwa fulam wa kwenisha wale kitu. No na. They do 2-2. Woke na pale na pale. Piaw katoka 1-1. We have a tough place to go. A team like Palace show them how it's being done. How you've had your business. Let me ask you. Where can Man Chester... Ni salve sholo gani Man Chester United na Ataka. Ipige Liverpool. How can they win against Liverpool? We also know it's not that strong enough. Ok, it's showing us weakness. We're talking about two teams that have really started their season very low, low-not. Manu wa me kwa down. Nasi hati kwa down ki place. Haana. Wa kwa down na 2-3. Manu. Manu kyanalize Boryao. Because team kwa down na Man Chester at a position always. But na pata Manu. Position on na manage. But they're conceding. They're not scoring. So kuna problem. I did them not even celebrated even a single goal. That's what he hates. No, those are facts. Those are facts. Manu. Ataka kwa kwa down na Aje. Manu wa na elewa. Fans wow. The best gift run is a pata. Fans wow. Ni kupiga nga Liverpool. Nga Liverpool pwa na juwa nga. The best gift run is a pata. Ni kunya rushanga Man Chester. Nga wana. So kuna kale kwa spiritia. We need to give it to the fans. Do tuko down. Majama tukazi. We need to give it to the fans. So Manu. Kwa mga Manu. Te lonati yu game wali pigo 4. Pa do wali kwa na chances a kusko wali create so many chances bata wa kusko. This time around I think wata jari bwa eke 2 or 3 goals I mean not 3, but 2 goals takwazi mingendani. Livo puno na the other side atu he say ma omidro because me kwa mga I feel like they've lost those two games. If you want to win the league in so saying you have to be beating teams like Fulham. You have to be beating teams like Crisopales at home. You have to be winning against them. But look at it this way. I love the way Liverpool responded when they played against Crisopales. They were 10 men down, 1 nil down as well. But waka equalize. In fact, me kido gusana. Manu atu ki angalabili wali patae equalizer. Moment of brilliance. Of course moments of brilliance some would need to stand out sometimes in the game. But when you talk about football, when you talk about trying to analyze a team you have to also talk about the chances that this team creates. Livo would manage to pull one goal and the game ended one one. But how many chances did they create? It's also a question that we need to look into. At first half they didn't create so many chances. Let me ask you, what they missed money? Definitely. The void money has left in the team nobody can fear. But they have known it's a five million pound striker that came, you saw. But he got a lot of money. I think it's... Nunez is showing some glimps. He's a good player and he's going to be a big player. But right now he's not because the way Manu used to play when the game gets tough Nunez used to pull back to the midfield go collect the balls. But Nunez cannot do that. Nunez is a typical finisher. He needs to be supplied with the balls. Sometimes the games get so difficult that you need to go and look for the balls. When you talk to a ball, exactly, we skumembele, we join the attack. Let me ask you one thing. Look at Manchester, looking at the Liverpool side. They'll be losing some key players. Nunez, I'll put a straight red card. What's the meaning of that? Jota, Ayuko. Faminiu, Ayuko. Do you think this is the right time for a team like Manchester United in a struggle? Because what's the problem is that the right moment for Manchester United? Is it the right time for Manchester United to face Liverpool? It's a bland assessment for a team like Manchester. Liverpool, we are attacking now, but some teams have gone down. I think it's down to the spirit. The spirit has gone down. We are going to play in Manchester. I think it's a bland assessment for a team like Manchester United. According to you. I think it's a bland assessment for a team like Manchester United. Look at this way, Santos. This team is a new season. You have a new coach and it's taking new ideas. What's the benefit of a new team like Manchester United? I think it's a bland assessment for a team like Manchester United. We have a new team and it's in the same period for us to play in a struggle. If we continue to play in a struggle, then we'll have to develop a new team for our team. na sumboile kuhara fae ndi ama bagi because after the game Agnes Brentford nona tuliyona like ali tolewa waka nda ali gemi liisha aku gotewa ata kochi ali kuna rusha tumkona ki nda then tu na kumuka preseason pia Agnes raiwa ya kano ali pigwa sabu kabla game ati ishe a kato kaka beba bagi a kaka nda and team ina semaga after game tu na toka wote pamaoji yali toka kaka nda kriisana runaulu isa bad influence in that dressing room mamba kriisana runaulu mimi in tablim kochi because right from the start kriisana luwambia what he needs what did he say that he needs kriisana needed a transfer ata kikua pali needed a transfer so this guys all didn't have a particular transfer na elewa so ni kama maneka jama pali hostage ni kudinda kupa da transfer ama ni akura teami di kora mtaaka a a a kriisana isi kosa team baya ni li kata akumitaka baya chanastu rea baya chanastu rea baya an jimadidi kasi yama that guys too old no this guys kama jama maseme nituwa tu na doi akumili pa because na jwa nizam patafri bata salari aki na oni paki aki ata manchester ikoma obu sana na elewa ati isi teams ngini ni excuse tuana peana akuna teami itaki kriisana ati game badwa lupigwa 4 na kini luna kituwa jeribuk fanya 1 2 3 imu takpa na chansana za fanya shugili lemi telli wai tu mimi ukini uliza Eriktan Haag a kuna taktik zaki kuna bina nata kachese na cheki this guy kristina ono na doi this guy has won almost everything in football apart from the world kucha ki kama na kuna taktik zaki zi nyanana imu takpa na chansana za fanya in this dressing room wansana za fanya in that dressing room wali toa wana get why can't you get behind this coach and these tactics na ona lemi telli if you look at manchester united na ona na sema wali shi nwa manchester wali kwaju this is the second goal they were trained to play from the back na ona this is a team that kuna structure wana kuchese as of now na ona it is a painful process but kuna ma players wana kata kuchese le game don't you think so na ona sometimes wana kumbega mi sometimes mupenda moriniu sana if it doesn't need you but there are some coaches wana kapali in silence but wana umiza team na ona kama kitu tenhaga na fanya ona jibu kujenge u team but kujenge u team na macha kuna utingina lazima wana dole kwaju team so kama na feel because kujese anupia mi umanbi ya like i needed a transfer this guy is somebody who is not ready to be part of this na kwa ni ni basa zi tole we asi jese na ona kuna contract contract nabind but it does not tell me that i should pick you to go and play if you don't want to and that's the problem na kumitu kama tenhaga fanya lazima juwe u cheza jia mwanya nia tia kuchese zi team mi badu nimi mweka apa na na mpika cheze kumasha kuna mutu sayata tenhaga let me tell you one thing about this successful teams look at Manchester City look at Liverpool there is no player that is above the coach a kuna player that is above the coach players what ever coach in your coach coach calls the shots na ona tegemi anastructure and structure a club not even a structure a club okay in the PSG Killian can fire and hire a coach he can but let me tell you you see this coach that came u luna rulisa liweka it doesn't matter we ni nani na na bi mawa하기 kabura ni sai this contract a kuna player na nina kwa above me na get jas take it or leave it na da swa bie naiki naa player nini coach na kuhonte kuntia li tisha kuma ni ni tote na na kimi a want one year contract na nana then after aapuak na kuna kumibia nina takule player takule player when they come in you are under him you play like this this is what I want let me ask you one thing nii, zemene. Umeana. Inside the dress, umrumi asenona, una ona bila. Nani a femtina. Uum say, Ali sema, this thing, ineda kwa painful. Tu meona pani mbaka bila, na kwa sa namawa nila uba. Suki ya kwa zia on na mbeo, kujie, wona kujia late. Suki ya piili, wona kujia late. Suki ya taitu, wana kujia late. Wana pana nii mi. Ana kufkusa, toka kwenda. Mezutu zil, toka kwenda, nage, Because there's been, you know, it was a minimum. It's hard, but one thing to agree, out of from your words and is of it is what I'm saying, on how to agree Christianity problem, problem we caught. It's a problem, no, Christiano, if you ask me right now, I can tell you one thing for sure. Getting... You must have the culture and make decisions. No, listen. You're going to play. Listen, listen. Getting Pogba out of Manchester United was the best thing. Getting Cristiano Ronaldo from Manchester United is also the good thing. Na taku kwenapali na usiwana za tizia boliako bro. That... Unawambia, na nifanya, wuki loose ball, kembia, ru di nyoma, defend, attack, pamoja. Tu ki attack, tu na taku pamoja. Wuki loose ball, tu na ru di pamoja. Tu na tizia kama team. Uchezi kama Christiana tu wana takaba ukumi. Look at Man City. They don't depend on one player. They depend on everyone to score at any given moment in time. Cristiano Ronaldo na takaya on kama the best player. Bro. When you're playing against a Manchester United side that has Cristiano, when Manchester are defending, Cristiano na naba kyu kumbele, a langoja rushiwe bolumbele. Bona siroodi ya defend. At 37 years. Do you think Cristiano can play for 90 minutes? Tu uiw mutu wa po Manchester United will feel good. It can hurt to me if you ask me, it's the best coach for that money. Na, na, na. Kiki na kiki na muna misapa. Na na mumu elewe. Ono na manu. Manu ito wa chukwa time sa na kuru de form. They do. Ito wa chukwa time. Na ita mimi, mimi na ii season peke. Ita o kali siata kama three seasons. Because Blandele kiki tilfa nika Manchester. Na e problemi liy haza na Van Gal. If I can remind you. How kufu ta Van Gal? Problemi liy haza na Van Gal. Van Gal? Van Gal ala li kwa na project. Na manu alim promise to support three projects. Ika happena menda season moja mbili aoni kiki kombi wa kawana stream ilikwa ka efe yama ni gani.  We are not supposed to be winning this small trophies. We need Premier League. We need Champions League. We will come fire. But while in fire kama tiari, a chance or something. Because Fagasona ki toka. Fagasona, in fact, Mourinya li ni herit, the weakest team. So Fagasona ki toka, manu wa kwa na qizana wings. We are going to be offensive most of the time kwa tak. It was an offensive play. But sa Van Gal ali poku, nansima football must be built from behind. So aka kujana ele posession. So man qizana hard to play from the centre. Wakenda kwa tak. Na elewa. Sa kuna problemi ya philosophy. Kuchenji from one philosophy to another philosophy. Ina kwa ni problem kubu asana. Ina efe teams kama Chelsea. Ina efe kata asana at some point. But me if you ask me, it has never affected Chelsea because Chelsea has been winning and they've been firing coaches season in, season out. No, it more effect. Let me ask you one thing. Ukiangali ya ni ni? Ukiangali ya sayu Ukiangali ya successia team kama Liverpool. It didn't take them one season. It took them like three seasons. So sayizi ole ma place okupale. They call. Imi kwa ni ole ma place Imi kwa ni ole ma place for long, for the last three seasons. The sayizi ole na kilam tu. Let me look at somebody like Fabinho. He came there. Ilim chukwa like aia. They integrate. Ukiizana wali wa zi. Na get. The same thing, we can't say about Manchester United. Manchester United, they are patching. Ushona elew kuna kidonda. Na unaeka bande jyumu. Na udu gishinana. Una takahi ponoi. Na ina kataku ponoi. Na unatawa ebi ina kwa tena uchungu. And that's when you come from Manchester to bring back their glory. It has to start with the fans. Ragnik, they have to lower their expectations. The last coach, Ragnik. Alesema itim. Itim ime oza. Itim, it needs a lot. It needs a lot of transfers. It needs a lot of transfers into ikuwe. Ikuwe poa. But you see, these problems were even communicated during Maurinian's time. When he said there's no need for the team and what happened in the end. He was fired. Instead of the club, instead of the club, he was fired by the coach. So, Apolo na kuja kwa problemi na kwa mbia, kuna waplea pa le Manchester neted, wakuna bigger ego than the club. Whereas, in the sense, kuna fwa kuna, in the sense, kuna fwa kuna, ini tuwaji, aplea fwa ikuwa kwa dana club. That's when we kujan kwa kwa mbia. So, any time, the man meku liza, any time a player is portraying to be bigger than the club, who is the problem? It's not the player. It is the player. No, no, no, no, no, no. It's never the player. Listen, where does this player get these privileges? Because he comes there, like somebody like Cristiano Bro. Ulin msuhe, mwenye na feel like is I'm the best. It is not just a feeling. These things are put down in writings. Let me remind you. They are, but that's okay. The issue of Cristiano not chasing the balls, these things were down then, the inagrement. It's not supposed to be. It's not even supposed to run for 90 minutes.  Manchester United vs. Liverpool, who is going to win this game? This game will end in a stalemate. Nobody is going to win. Nobody is going to win. All those teams are under pressure. Manchester United, they have not won since Ligue 1. They have not even scored a goal. Liverpool, they have not even won a game, but they have scored some goals. We've seen that. So we have final of prediction. Maniu vs. Liverpool. Maniu final is going to get the first goal of the season against Liverpool. So they are going to score. And the prediction 2-2. 2-2. If you ask me, I'll tell you that Manchester United, they'll get beat by Liverpool. If you ask me why, I'll tell you this. Liverpool, they are good at pressing. Manchester United, they are trying to play at the back. That can be very dangerous when you play against a Liverpool side that know how to press. Correct score, Manchester United, for real, they can get a goal for the first time. But I think Liverpool will win this game 2-1. So prediction, Liverpool 2, Manchester United, 0. Hey! Hey! As we finish. Onakona on de pali, ondi wa weke Gigi, yama wa weke Kichura. Pali kwa odi betu, naizengia pali kwa odi betu. Onakona on the best odds pali, weke Gigi, ama weke Liverpool 2. Correct score pali, Manchester United 1. Yes, that has been 8 laser gentlemen. Chukwa pali kwa predictionia kwa enda pali, angaliya pali, 20 share predictionia kwa nifgani pali, kwa mbiye pali, like, comment, share. It's been me, Edima Story. Yama kwa hostuwa kwa pali na kwa kwa kwa kwa pali na kwa kwa kwa pali na Dos Santos, aka Rhyme City, Blue Army. Wana kwa kwa kwa kwa social media? Ah, niku pali YouTube at Rhyme City, niku pa tiktok at Rhyme City 4. At Rhyme City 4. This has been an SPM production with me, Edima Story, as your host. Don't forget to subscribe, share and comment na tupata na pali, all the bits, weke pali nini za kwa tu tupati kwa tupata na kitu.


This is my altar preparation. I'm not very good at altar prep, but here I'm lighting my incense burner, which is one of my favourite things. I love the air access that it provides and obviously some candles and that's some incense that I'm putting on the table there. I like a lot of candles, so let's light some more. Candles do work. I carry on fiddling with this table for quite a while. I don't know if I ever achieved the perfect altar. I'd love to hear what you put upon your altars. Do let me know in the comments.


We're given an electric field towards the left a uniform field which has a magnitude of hundred volts per meter And we're given three points a b and c and we're asked to figure out. What is the potential difference v a minus vb and Vb minus vc So the whole idea behind this problem is we need to figure out you need to find a way to calculate potential differences From electric fields now in a previous video. We've seen what that connection is We saw something we realized that electric field is a negative potential gradient If you don't know what that means and you're not familiar with this connection Feel free to pause this video go back and watch that video revise the concepts and come back over here All right, if you're cool with that Let's go ahead with this. Let's start solving the first one. What is the potential difference v a Minus vb. How do we how do we do that? Well one way is we can use the formula and we'll do that a little bit later But I want to try and solve this logically and for that I asked myself What does this number even mean this number says that if you move along the field And for every meter you go forward along the field you will lose hundred volts of Potential that's what this number means and if you're wondering why do we lose potential as you go along the field Well, if you keep a positive charge somewhere over here and let go of it What happens? Well, it'll accelerate along the field meaning it will gain kinetic energy along the field Which means it lose potential energy along the field just like in terms of in just like in the case of gravity as things fall down They lose potential energy along the field So I know that if you go for every meter along the field you lose hundred volts or Every meter in the opposite direction of the field you gain hundred volts Which means if there are two points which are one meter apart I know that their potential difference will be hundred volts So that means I just need to figure out how far apart these two are and then I can calculate So can you pause the video right now and see if you can if you can you know just using this information figure out What is the potential difference between these two points? You're a try All right So the first thing that comes to my mind is I just have to figure out what the distance between These two points are if I know this distance and let's say I find out that distance to be and you know You can use coordinate geometry to figure that out, but let's say you get some number For example say 10 meter. Okay, just an example Then that means for every meter I gain hundred volts. So for 10 meters, I would gain 10 times 100 So thousand volts so that would that be the answer? No, that will not be the answer. You can't do it this way. Can you pause the video and think about? Okay, another thing why you can't do it this way All right So this number that you gain or lose hundred volt per per meter Only works when you move in the direction of the electric field Or in the opposite direction basically you have to move parallel to the electric field only then you can say per meter You gain or lose hundred volts. So you can't move this way So then how do I go from a to b the way I like to do it is I mean What one of the ways to do it is you can go from a to b along the field first and then you go up this way I'll tell you why See when I go from here to here, I can use this number I can figure out how far this distance is and then I can use this number to figure out what the potential How much potential I'm gaining because I'm going in the opposite direction and now I'm going from here to here Notice when I go this way, I'm moving perpendicular to the electric field And we've already seen before That if you move perpendicular to the electric field, there'll be no change in potential In fact, these two points lie on an equi-potential surface Remember equi-potential surface are always perpendicular to the electric field. So long story short from here to here. There is no change in potential Okay, so that means all I have to figure out is what is the potential at this point I mean, I just need to figure out what is the potential difference between these two points That's the same as the potential difference between these two points because this and this and all the points lying on this plane Would be at the same potential. Does that make sense? So I just need to figure out what this distance is and I can do that by looking at the x coordinate So this is negative one This is plus four So what is the difference between these two points? That's four Minus minus one that is four plus one. So that's five meters and you can pause and you can just check that's right So this is five meters And so now I can use this number. I know for every meter I go forward Every meter I go forward I gain hundred volts So how much would I gain if I go five hundred five meters forward? I gain five hundred volts So immediately I know that this point which is the same as this point potential wise Is five hundred volts more than this point. So I let me write that mathematically vb Is five hundred volts more than va And therefore what I what I need is va minus vb. So I can just rearrange This and I'll get va minus vb as negative 500 volt And we're done There we go. That's the answer Okay, now before we go forward to the next one Let's just convince ourselves. We get the same answer by using the formula This will be an excuse for us to you know get used to the formula in a previous video We also derived the formula. We saw that electric field What is the connection between this and the potential difference electric field is the negative potential gradient, which means it's the negative Difference in potential between two points divided by The distance between the two points and again this distance is only along the field Okay, so can you again pause the video and see by substituting you end up with the same answer So give a shot All right, so if you rearrange you get delta v equals minus e times delta r Now when you're talking about delta v and delta r, especially delta v We need to be very careful about which is our initial point and which is our final point Right because we're talking about change initial and finals are initial Important now over here. We went from here to here, but you don't have to you could have gone backwards as well But just to keep things simple. I'll call this as my initial point And this is my final point this point and this point are the same by the way like we just saw potential wise They're same All right, so what is delta v now delta v is final potential minus the initial potential So this would be vb minus va And that's why it's important if you had called this as your initial point and this as your final point You would call this va minus v would be opposite This equals negative. What is the strength of what is the value of electric field now? We know the magnitude is 100, but what about the direction? It's in the opposite direction of the positive x and that's again That's important when you're substituting over here. So that means this is negative 100 volt per meter. So negative 100 volt per meter Times what is delta r delta r is you're going from here to here So you're going in the positive direction. So that's plus five So five Meter so meter meter cancels and see what we end up with we get 500 plus 500. So you get 500 volt So vb minus va is 500 volt means va minus vb is negative 500 volt. So you get the same answer So you get the same answer All right, can you think about what would be vb minus vc? Again, can you pause and try? All right So because we point b and c lie on the exact You know perpendicular that is the equipotential surface They are at the same potential Which means the potential difference between them must be zero And so whether you take vb minus vc or vc minus vb, it should be zero And again, I could ask does the can we use the formula to get arrive at this? Yes This time delta r for them is zero because remember delta r is the distance along the field The distance along the field is zero Are you getting that along the x direction? They have the same coordinate and therefore delta r is zero And then therefore you would get the same answer here. All right, let's try one more Okay, in this case, we are given an electric field pointing downwards with a magnitude of 30 volts per meter We're given a point a whose coordinate is given to us 3 comma 10 And there is a point b such that their potential difference is given to us this time And so our goal is to find what the coordinate is again. Can you try doing this yourself first? All right, so again, the first thing I want to try and do is see if I can do this logically Now I know that the first thing I'm looking at is I'm looking I'm trying to figure out whether b should be About a or b should be below a It's given to me that vb is more than va, right? It's a positive number That means Vb has a higher potential than va And so I'm just asking myself if I go down along the field potential will drop Oh, so it has to be about so b has to be somewhere over here Somewhere over here Okay, so that's the first thing I figure out now. I know that for every meter I go up. I will gain 30 volt But for us, I just have to gain 10 volt So I asked myself how many meters should I go up? Like I like to do it this way. I like to write it down. So I know for one meter If I go up, I know I gain 30 volt 30 volt But it's given to me that I just have to gain 10 volts So how many meters should I go? Well, it's one third And therefore it should be one third over here as well. So one over three So I divide this by three I get 10, right? So I divide this by three and so one third meter. So that is 0.33 meter so this distance should be so that down 0.3 So now comes the question. What is the coordinate of this point? So this point would be Well, the x coordinate would remain the same Because x coordinate is not changing. So that's three The y coordinate would be now 10 plus 0.33. So it would be 10.33 There'll be bar. I can put a bar over there Now one thing like just like we saw last time This is not the only point that has 10 volt higher than point a I can in fact have any point along this line Perpendicular because all of these points on this line are equipotential So point b can be here also Point b can be this one So point b can have any value of x coordinate because this is a uniform field It can have any value of x coordinate, but it's y coordinate has to be 10.33 Which means the actual answer that we need to give if somebody asks us this question is we could say hey It can have any value. It's not that we don't know the value of x coordinate We're saying it can have any x coordinate it wants. So I'll just going to put x over there pick any point you want And y coordinate has to be 10.33. So this is our answer And I encourage you to try and check this using the formula yourself


In this module, we would continue to answer some of the questions posed earlier. The questions are related with some practical issues in the offering of profit sharing investment accounts. We have already answered two questions. Question number one, is it permissible to open a profit sharing investment account with a conventional bank? And question number two, is it permissible for a bank to unilaterally change profit distribution ratio? The third question which we are going to answer in this module is, what is the treatment of funds in profit equalization reserve and investment risk reserve? In our previous modules, we have studied profit equalization reserve and investment risk reserve in the context of profit smoothening in profit sharing investment accounts. Now the question is, what is the treatment of funds left in profit equalization reserve and investment risk reserve? More specifically, the question says, who owns the funds in these two reserves? We shall demonstrate in this module that the funds or excess funds in PER, profit equalization reserve, should be shared between the shareholders of the bank and the profit sharing investment account holders. And the funds in IRR should belong to the profit sharing investment account holders exclusively. Let us look at a numerical example to explain it. This is a page which I have reproduced from one of the modules which we have already gone through. So there is an individual who opens a profit sharing investment account with a bank and puts this $1 in his account. Now this $1 goes into a bigger pool which is called Mudarabha pool. So in our example which we have already discussed, the size of that pool was $1 billion. In this pool, profit sharing investment account holders put their money and of course the managers of the bank, they can put some money from the shareholders' capital as well. In this particular example, out of $1 billion in the Mudarabha pool, about $100 million, they come from the shareholders of the bank. This pooled money is then used for various financing activities which generate some profit. Now this profit actually, when we look at it, that goes into profit equalization reserve and investment risk reserve. We would look into that one in just a second. But before that, I just wanted to highlight that in the Mudarabha pool, 90% of the funds, they come from profit sharing investment account holders and 10% of the funds, they come from the shareholders of the bank. Hence this 10-90 ratio highlighted. Now $250 million, this is the total profit generated by the business activities financed by the Mudarabha pool. Now the profit distribution ratio in this case is $50-50. This means that the bank would get $125 million out of this $250 million and the remaining profit share should go to those who contributed to the Mudarabha pool. However, banks don't do that. They would like to create a buffer. In this case, $20,000 out of $125,000 share of the Mudarabha pool contributors would go into profit equalization reserve. So $20,000 goes there and the remaining $120 million and $105 million goes into the share of the profit sharing investment account holders and the shareholders of the bank. Out of that $105 million because this $105 million is actually more than the $90 million required to distribute profit in such a way that the 10% indicative rate of return is actually achieved. So in that case, $500,000 that goes into the investment risk reserve and the 10% of this, which is the share of the bank's shareholders, that goes to them. So remaining $90,000, that is actually the distributable profit which makes the realized return of 1% which is equal to the indicative one. Now, the question is, who owns this money and this money? The answer is, the money in profit equalization reserve would be shared between the bank's shareholders and profit sharing investment account holders in accordance with their share in the investment pool which was 90% by the profit sharing investment account holders and 10% by the shareholders of the bank. The money going into investment risk reserve that actually comes solely from the share of the profit sharing investment account holders hence they would own this money exclusively.