Question
Case 2 Read the following cases and the questions that follow. Botho (2018) stated that Amon, Peter and Shephard formed a partnership six years ago,
Case 2 Read the following cases and the questions that follow. Botho (2018) stated that Amon, Peter and Shephard formed a partnership six years ago, although Amon was a sleeping partner and never had anything to do with running the business. Two years ago the partnership employed Isaac as its manager and last year Peter retired from the partnership. Shephard subsequently has left much of the day-to-day work to Isaac who has let it be known generally that he has become a partner, although he has not. In May of this year Isaac entered two large contracts. The first one was with a long-standing customer, Robert, who had dealt with the partnership for some five years. The second contract was with a new customer, Simon. Both believed Isaacs claim that he was a partner in the business. Both contracts have gone badly wrong leaving the partnership still owing total of P900,000 to both Robert and Simon. Unfortunately, the business assets will only cover the first P450, 000of the total debt.www.accaglobal.org.uk. a.Explain Amons liabilities (10 marks)
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