PART A 5 Marks Jack and Jill were friends who set up in business as a partnership. They agreed verbally that Jack would contribute $60 000 and Jill $40 000 to start the business and further that Jack would be the manager on a salary of $6 000 and Jill the bookkeeper on a salary of $3 000. After trading for a while, the business accumulated several large debts. a. What is the extent of the liability of both Jack and Jill for these debts and why? 2 Marks Further, Jack decided to sell his partnership interest to Mary for $80 000 even though Jill was unaware that Jack had done so. Answer the following giving reasons. b. (i) Does Mary have the right to be a partner? (ii) Will Mary be able to share in the profits and if so how much? (iii) Is Mary also liable for any unpaid debts? 1 Mark 1 Mark 1 Mark PART A 5 Marks Jack and Jill were friends who set up in business as a partnership. They agreed verbally that Jack would contribute $60 000 and Jill $40 000 to start the business and further that Jack would be the manager on a salary of $6 000 and Jill the bookkeeper on a salary of $3 000. After trading for a while, the business accumulated several large debts. a. What is the extent of the liability of both Jack and Jill for these debts and why? 2 Marks Further, Jack decided to sell his partnership interest to Mary for $80 000 even though Jill was unaware that Jack had done so. Answer the following giving reasons. b. (i) Does Mary have the right to be a partner? (ii) Will Mary be able to share in the profits and if so how much? (iii) Is Mary also liable for any unpaid debts? 1 Mark 1 Mark 1 Mark