I had an amount of money which I used to establish a company trading in computers and related accessories. A year has passed since I established the company, and I would now like to pay zakat on this business. How should I calculate zakat on this business in detail, taking into account the company’s receivables and liabilities, and that there is still merchandise in the warehouses that has been there since the company was established? Should I include these debts and the merchandise in the warehouses when calculating zakat?

If a Muslim owns a trading company, such as the company mentioned in the question, zakat on its commercial assets is calculated as follows:

The company’s current liabilities are deducted, while its receivables are added. The merchandise held by the company is valued at its wholesale selling price. The zakat calculation should include current assets and working capital, but exclude fixed assets. This calculation is made when zakat becomes payable, upon the completion of a lunar year (hawl), and zakat is then paid at the rate of one-quarter of a tenth (2.5%) of the resulting amount.

And Allah Almighty knows best.

Calculated amount OR resulting amount?