CASE $10$

Sim, Tim and Una formed a partnership, under the Partnership Act $1890,$ to run a pottery business trading under the name STU Potteries. On formation, Sim introduced $6,000$ into the business, Tim introduced $3,000$ and Una introduced $1,000.$ All of them took an active part in the operation of the business and the partnership agreement stated that all profits and losses should be divided in proportion to the capital contribution. However, as Una was the person who would actually be making the pottery, it was agreed that she would not be liable for any more than her initial contribution towards any future debts. After some time, Sim provided the partnership with an advance of $1,000$ in order to sustain the operation of the business.

Unfortunately, the business is not successful and has made significant losses. Today the partners decide that it would be best to stop trading and dissolve the partnership. Its assets are worth $5,000$ and its external debts are $9,000.$

Question $29$

Work out how much each partner will have to contribute to paying the external debts;

Question $30$

Make a decision as to how Sim's advance of $1,000$ will be dealt with.