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kindly answer all questions Clara and Lesh set up C & L Accounting Practice, an ordinary partnership, in 2018. Both were well renowned experienced dentists
kindly answer all questions
Clara and Lesh set up C \& L Accounting Practice, an ordinary partnership, in 2018. Both were well renowned experienced dentists and they decided it would give them more returns if they opened their own practice. Each invested towards the startup of the business as follows: Clara P200,000 LeshP100,000 The two did not draw up a Deed of Partnership as they had been very good friends and longtime classmates. Unfortunately, within the first year their relationship became sour. Clara worked half the hours he was supposed to work but all the same demanded half the profits. Lesh worked extra hours to cover up for his defaulting friend and was not pleased with Clara's demands. The situation worsened when the Accounting Practice received a letter from revenue authorities claiming that they owed P210,000 in tax. This happened because Lesh forgot to file tax returns. Required: 1. Discuss the advantages of a limited liability partnership over an ordinary partnership.(8 marks) 2. Advise whether or not Lesh is correct in demanding half the profits.(4 marks) 3. Explain how a deed of partnership would have assisted C \& L Accounting Practice. (8 marks)Step by Step Solution
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