What should I do with my friend who took 88,0 pounds from me to invest, and has not returned my capital or the overdue annual profits, and claims to have incurred losses, knowing that I need the money to pay off my debts amounting to 300,0 pounds? And should I take back only my capital, or my capital with the overdue annual profit, or should I forgive him?

If your friend took your money and used it to pay off his debt, and then gave you a profit from his own money, he has sinned and betrayed the trust. He must guarantee your capital without any increase, and what he gave you as profit should be deducted from the principal. If he gave you 85,0 out of an original 88,0, then only 3,0 remain due from him. In lawful Mudarabah (profit-sharing partnership), it is not permissible to guarantee the capital or the profit; otherwise, the Mudarabah becomes invalid. In this case, both the capital and the profit belong to the owner of the money, and the worker is entitled to a fair wage. In case of loss, the loss is borne by the owner of the money, and the worker still receives his wage.