Jane, Jasmeen and Janet are partners in a firm in Petaling Jaya called Jasmeennet Trading. Jasmeennet Trading
Question:
Jane, Jasmeen and Janet are partners in a firm in Petaling Jaya called Jasmeennet Trading. Jasmeennet Trading is in the business of Interior Home Design. Although the firm was formed for a fixed period of 5 years they have been carrying on the business for the last 7 years. Recently the following facts have come to light:
a) Janet who has the task of collecting money due from customers has been receiving cash incentives from some customers for giving them some extra time to pay up.
b) Jane and Jasmeen have together set up another similar business in Klang, their hometown and have left it in the management of Jane's sister, Jessica. They will go to Klang once in two weeks to keep an eye on the business and take account of the profits.
c) Jane wishes to introduce Jessica as a partner. However, Jasmeen and Janet are opposed to this idea and have threatened to expel Jane if she insists on doing so. The partnership agreement is silent on the question of introduction and expulsion of partners.
d) Jane wishes to have the firm dissolved because she no longer has confidence in the other partners.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill