Calculating Zakat on Combined Wealth (Cash, Gold, Business, Receivables)

Short answer: Gather the market value of all zakatable assets (cash, gold, business inventory, and reliable receivables) on your chosen zakat date. Subtract any immediate liabilities due. If the net total exceeds the nisab (value of 85g gold or 595g silver), pay 2.5% on the entire amount. Combine all categories into one calculation — do not separate them. Details: The obligation to pay zakat on accumulated wealth is established in the Qur'an (Surah At-Tawbah 9:34-35) and numerous hadith. The Prophet (ﷺ) warned against hoarding gold and silver without paying zakat (Sahih al-Bukhari 1404; Sahih Muslim 987a). The nisab for silver is five awaq (200 dirhams) as in Sahih al-Bukhari 1404, and for gold it is 20 mithqal (approx. 85g), derived from the same principle. Business inventory is valued at its market selling price at year-end, following the general command to pay zakat on trade goods (indicated by the practice of the Prophet and his companions, e.g., the instructions of Abu Bakr in Sahih al-Bukhari 1454). Receivables (debts owed to you) are included if the debtor is solvent and the debt is likely to be recovered; doubtful or bad debts are excluded until actually received. The zakat is due on the combined net wealth after deducting immediate liabilities (e.g., unpaid bills, loans due within the year). Evidence: 1. Surah At-Tawbah 9:34-35: "And those who hoard up gold and silver and spend it not in the Way of Allah — give them tidings of a painful torment." (P9) 2. Sahih al-Bukhari 1403: The Prophet said, "Whoever is made wealthy by Allah and does not pay the Zakat of his wealth..." (P3) 3. Sahih al-Bukhari 1404: "…Whoever hoards up gold and silver…" and the nisab of silver is set at five awaq. (P2) 4. Sahih Muslim 987a: Warning to owners of gold and silver who do not pay zakat. (P4) 5. Sahih al-Bukhari 1454: Detailed instructions on zakat for various assets, showing the principle of valuation and collection. (P1) 6. Surah At-Tawbah 9:71: "…they establish prayer and give zakat…" (P12) Note: These passages establish the obligation and nisab. Combining all zakatable assets into one calculation is based on the general principle that zakat is on the total wealth (mal) above nisab. For complex cases involving mixed assets or business inventory, consult a knowledgeable scholar.