Question: A man has a muḍārabah fund with which he has traded for a period, and profits accrued. He withdrew an amount from it, and the owner of the capital withdrew an amount, then the trading continued. After that the owner of the capital requested an accounting and a division. The muḍārib said that most of the principal is a debt upon a man who is on the verge of bankruptcy, and the remainder is merchandise. What is required then?
Answer—and Allah is the One who grants success: What is required is that the muḍārib return what he had withdrawn from the profit and hand it over to the owner of the capital, and it is to be added to what the owner had withdrawn and counted as part of the principal. Then the muḍārib must pursue the debt and demand its repayment. When he recovers the debt, he completes the owner’s principal for him, and they divide what remains. If thereafter they wish to divide the merchandise, they may divide it; otherwise, the muḍārib sells it and they divide its proceeds.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2