This study presents a computational method combining smoothed particle hydrodynamics (SPH) and the discrete element method (DEM) ta model flows containing a viscous fluid and macroscopic solid particles. The two-dimensional numerical simulations are validated by comparing the wake size, drag coefficient and local heat transfer for flow past a circular cylinder at Reynolds numbers near 100. The central focus of the work, however, is in computing flows of liquid-solid mixtures, such as the classic shear-cell experiments of Bagnold. Hence, the simulations were performed for neutrally buoyant particles contained between two plates for different solid fractions, fluid viscosities and shear rates. The tangential force resulting from the presence of particles shows an increasing dependence on the shear rate as observed in the Bagnold experiments. The normal force shows large variations with time, whose source is presently unclear but independent of the direct collisions between particles and the walls.