Understanding the Mplus Monthly Client Statement
The Monthly Client Statement is one of the documents issued by Mplus and is available within their system. To find out where you can obtain it, visit /blogs/client-statement-apa-yang-anda-perlu-tahu
This statement is for an Mplus Islamic Stockbroking account for the month of May 2024. It contains two main sections:
- Details of Trust Account:
- Trust Opening Balance: RM1,112.75
- Trust Deposits: RM1,632.64
- Trust Withdrawals: RM2,408.85
- Trust Credit Charges: RM78.31
- Trust Closing Balance: RM414.85
- Details of Transactions (Trading Account):
- Trade Opening Balance: RM0.00
- Trade Purchases: RM6,912.10
- Trade Sales: RM6,207.06
- Trade Contra and Setoff: RM2,408.85
- Payment to Client: RM1,632.64
- Trade Closing Balance: RM71.17
To verify the accuracy of this statement, we need to check the calculations:
- Trust Account Balance Calculation:
Trust Opening Balance + Trust Deposits – Trust Withdrawals + Trust Credit Charges = Trust Closing Balance
1,112.75 + 1,632.64 – 2,408.85 + 78.31 = 414.85
This matches the stated Trust Closing Balance exactly. - Trading Account Balance Calculation:
Trade Opening Balance + Trade Purchases – Trade Sales + Trade Contra and Setoff – Payment to Client = Trade Closing Balance
0.00 + 6,912.10 – 6,207.06 + 2,408.85 – 1,632.64 = 71.17
This also matches the stated Trade Closing Balance exactly.
Debit and Credit
Debit and credit refer to money flowing in and out. If RM100 is debited from Account 1, then an equivalent amount should be credited to Account 2. That is the general principle, however, looking at this statement, the trust account and trading account do not follow this convention exactly.
In the trust account, any money deposited is placed under the credit column. Money withdrawn from the trust to pay for something is placed under the debit column.
In the trading account, share sales are placed under the credit column – likely meaning the money has exited the share portfolio. Share purchases are placed under the debit column.
TPA refers to purchase transactions, TSA refers to sale transactions, and CS refers to contra or setoff.
Certain transactions that occur on the same day are not listed as TPA or TSA but are instead consolidated directly as CS.
In the trust deposit section, share sales are denoted with PY while deposits from your bank account into the trust are denoted with DC at the beginning of the code in the second column (Reference No). Both of these appear under the credit column.
In the Trust Withdrawal section, money withdrawn from the trust to be transferred to the client''s account is denoted with WC at the beginning of the code in the second column (Reference No). It is placed under the debit column.
In the Summary section, the left side covers the Trust while the right side covers the Trade.
Trade Balance on the Right Side
Payment To Client occurs when the combined total of Trade Sales and Trade Contra and Setoff (summed and made positive) exceeds Trade Purchases – the surplus is deposited into the Trust and recorded as a Trust Deposit.
There may be instances where additional factors such as delayed cost calculations or transactions outside the statement month mean that a remaining balance is not transferred but instead carried forward as the Trade Closing Balance. (Payment To Client may not fully reflect the amount)
Trust Balance on the Left Side
The Trust section on the left side of the table is designed to show the amount remaining in the Trust to be carried forward to the following month. Starting with the Opening Balance, the amount increases with Trust Deposits and Credit Charges (such as hibah), and decreases due to Trust Withdrawals and Debit Charges (if applicable).
If Trust Deposit equals Trade Contra, it means no cash was deposited into the trust that month.
- A negative value means share sale proceeds exceeded share purchases, which will increase the Trust amount.
- A positive value means share sale proceeds were insufficient to cover share purchases, which will decrease the Trust amount.
If Trust Deposit does not equal Trade Contra, the difference represents cash that was deposited into the Trust account.
Focus on the Transactions
If these concepts are still confusing, refer back to the Details of Trust Account and Details of Trade Account sections which list all transactions. Every transaction should be paired between both sections. You should also review the Contra Trade and Set Off section if multiple transactions occurred simultaneously.
FAQ – Mplus Monthly Client Statement
What is the Mplus Monthly Client Statement?
The Monthly Client Statement is a monthly report issued by Mplus that records all share buy and sell transactions, trust account balances, and trading account details for that month.
What is the difference between the Trust Account and Trade Account in the statement?
The Trust Account records cash inflows and outflows, while the Trade Account records the value of shares bought and sold. Both are interrelated and every transaction must appear in both sections.
What does it mean when Trust Deposit equals Trade Contra?
If Trust Deposit equals Trade Contra, it means no cash deposit was made that month. If they differ, the difference indicates a cash deposit made into the Trust account.
How do I obtain my Monthly Client Statement?
You can obtain your Monthly Client Statement through the Mplus system. Log in to your account and look for the monthly statements section to download the document.
Understanding your financial statements is an important step towards becoming a savvy investor. Make sure you know how to read every transaction detail.
Open your CDS account today by following the step-by-step guide here to start investing in the stock market.
Download our free stock market basics ebook to learn the fundamentals of share investing from scratch.