How is Zakat assessed when trading goods are sold for cash and the Hawl passes while the cash is held?
Chapter on Zakat on Trade Merchandise
Al-Mughni
Book of Zakat
Primary text
If trading goods are sold for cash, and the Hawl passes while the cash is possessed, the cash is valued for Zakat purposes, not the previous trading goods, because Zakat is only assessed on what the Hawl has completed its cycle upon.