Rahim and Karim undertook jointly to build a house for a company at an agreed price of Tk. 60,000, payable Tk. 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 Rahim paid Tk. 15,000 and Karim paid Tk. 10,000. Profit sharing ratio between Rahim and Karim was 3:2. From the following transactions, prepare Joint Venture Account, Joint Bank Account and the Venturers Personal Account closing the venture: Materials purchased Tk. 20,000; Wages paid Tk. 15,000; Materials supplied from Stock by Rahim Tk. 3,000 and Karim Tk. 2,500 respectively. Architect’s fees Tk. 1,000 was paid by Karim. The joint venture was closed by Rahim taking up all the shares of the company at an agreed valuation of Tk. 12,000 and Karim taking up the stock of surplus materials at an agreed valuation of Tk. 1,500. The contract was duly completed and the price was received.
Prepare Joint Venture Account, Joint Bank Account and accounts of the venturers.
