Reference no: EM133166774

Question - Ram and Shyam undertook jointly to build a house for a company at an agreed price of BDT 60,000, payable BDT 45,000 in cash and the balance in fully paid shares of the new company. A Joint Banking Account was opened in their names into which Ram paid BDT 15,000 and Shyam paid BDT 10,000. Profit sharing ratio between Ram and Shyam was 3:2. From the following transactions, prepare Joint Venture Account, Joint Bank Account and the Venturers Personal Account closing the venture: Materials purchased BDT 20,000; Wages paid BDT 15,000; Materials supplied from Stock by Ram BDT 3,000 and Shyam BDT 2,500 respectively. Architect's fees BDT 1,000 was paid by Shyam. The joint venture was closed by Ram taking up all the shares of the company at an agreed valuation of BDT 12,000 and Shyam taking up the stock of surplus materials at an agreed valuation of BDT 1,500. The contract was duly completed and the price was received. Prepare Joint Venture Account, Joint Bank Account and accounts of the venturers.