Das, Bose and Gupta undertake to build a five storied mansion for National Housing Trust Ltd. The contract price is agreed at BDT 25,00,000 and to be paid in cash BDT 22,00,000 by four equal...


Das, Bose and Gupta undertake to build a five storied mansion for National Housing Trust Ltd. The contract price is agreed at BDT 25,00,000 and to be paid in cash BDT 22,00,000 by four equal instalments and the balance amount in 8% Debentures of the company. They agree to share profit or loss in 2:2:1 ratio. They opened a joint banking account with the cash contributed as stated below: Das BDT 3,00,000; Bose BDT 3,75, 000 and Gupta BDT 2,00,000. Das arranges the preparation of building plans, and the like and pays BDT 32,000 as architects fees. Bose brings a concrete mixer and other implements valued at BDT 80,000 and Gupta brings a motor lorry valued at BDT 75,000. They paid in cash for the following items: Materials - BDT 12,26,800; Wages - BDT 7,33,200; Sundry Expenses - BDT20,000; and Plant - BDT 60,000 On completion of the venture the concrete mixer is sold for BDT 50,000 and the Plant and other implements are sold as scrap for BDT 10,000. Gupta takes back the motor lorry at BDT 40,000. Subsequently, Das took over the Debentures issued by the company at a valuation of BDT 2,80,000. Show the necessary ledger accounts for the Joint Venture.



Jun 11, 2022
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