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Question 1 Andrew, Ellie and Martha have formed a standard partnership to sell cupcakes. Each of them contributed 10,000 into the partnership. Martha clarified to
Question 1 Andrew, Ellie and Martha have formed a standard partnership to sell cupcakes. Each of them contributed 10,000 into the partnership. Martha clarified to the other partners that she cannot contribute any more funds to the partnership. The partnership agreement contains a clause that provides that the partnership will sell 'cupcakes and wedding cakes'. In January 2019, Ellie withdrew 5,000 from the account of the partnership informing the bank that she would use this money to pay the partnership's debts. In reality, she used this money to pay the hotel and air tickets for her holiday in the Caribbean. In February 2019, Andrew refurbished the kitchen of his house for 4,000. He said that his new fully equipped kitchen could be used to serve customers of the business more efficiently. Advise Andrew, Ellie and Martha as to their rights and liabilities in relation to their partnership. Total= 30 marks
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