Ram and Shyam doing business separately as a building contractors. They undertake jointly to construct a building for newly started joint stock company for a contract price of Rs 2,00,000 payable Rs 1,60,000 by installment in a cash and Rs 40,000 in fully paid share of the company. A joint bank account is opened. Ram and Shyam deposited Rs 50,000 and Rs 30,000 in the bank respectively. They will distribute profit or losses in the proportion of 2:1. The transactions of joint venture were as follows :
Purchase of material Rs 1,40,000, Wages paid Rs 60,000, Ram gave material from his stock Rs 10,000, Shyam gave material from his stock Rs 8,000, Architect’s fees paid by Ram Rs 4,000. Accounts are settled.
The contract was completed and contract price was received. Ram took all the shares for Rs 32,000 and Shyam took remaining stock for Rs 6,000.
Open the necessary accounts in the books of joint venture.
