Larry and Sue are accountants. They conduct their accountancy practice, Country Accountants, from premises located in Nundle NSW. Each partner has an equal share in the partnership. The building is owned 75% by Larry and 25% by Sue as tenants in common. Sue wants to give up accounting to focus on creating a business making felt hats out of possum fur. The accounting practice currently has: unbilled earnings of $250,000 cash in a bank account of $300,000 and unpaid liabilities of $100,000 Sue believes that, on the dissolution of the partnership, she is entitled to receive the following. 50% of the unbilled earnings 50% of the cash in bank and 50% of the building owned by her and Larry as tenants in common Advise Larissa on the following. 

a. What is a partnership? 

b. On a dissolution of the partnership, which partner or partners are responsible for the partnership liabilities? 

c. Is the building the property of the partnership? Please set out your reasons for your answer 

d. What is the difference between a property held as a joint tenancy and a property held as tenants in common?

Answer rating: 100% (QA)

a A partnership is a legal business structure where two or more individuals partners come together to carry on a business with the aim of making a pro... View the full answer