Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 3 John and Sue have owned and operated a profitable computer shop for a number of years. Without telling Sue, John begins to order

image text in transcribed
QUESTION 3 John and Sue have owned and operated a profitable computer shop for a number of years. Without telling Sue, John begins to order large amounts of exotic new components for the shop to improve sales. Sue says that she will not pay for any of the items purchased by John because she did not know about the purchases, and thinks paying for them is 'John's problem. As J appears to be acting in the course of the business and as S is a member of the partnership she will share in any of the losses from the experimentation of the new menu. Partners share losses equally (Partnership Act 1958 (Vic) 28(2)) - unless an agreement to the contrary. Partners are jointly liable for the debts incurred by a partner in the ordinary course of the business. J's conduct in trying to improve the business does appear to be in the ordinary course of the business. Partnership Act 1958 (Vic) ss 9, 13. See paragraph 11.27. QUESTION 3 John and Sue have owned and operated a profitable computer shop for a number of years. Without telling Sue, John begins to order large amounts of exotic new components for the shop to improve sales. Sue says that she will not pay for any of the items purchased by John because she did not know about the purchases, and thinks paying for them is 'John's problem. As J appears to be acting in the course of the business and as S is a member of the partnership she will share in any of the losses from the experimentation of the new menu. Partners share losses equally (Partnership Act 1958 (Vic) 28(2)) - unless an agreement to the contrary. Partners are jointly liable for the debts incurred by a partner in the ordinary course of the business. J's conduct in trying to improve the business does appear to be in the ordinary course of the business. Partnership Act 1958 (Vic) ss 9, 13. See paragraph 11.27

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Teams Dynamics And Efficiency

Authors: Mara Cameran, Angelo Ditillo, Angela Pettinicchio

1st Edition

1032097000, 9781032097008

More Books

Students also viewed these Accounting questions

Question

Understand human resources role in performance appraisals

Answered: 1 week ago