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- Mr. Tom promises to find a job for Mr. Martin in a public company. Mr. Martin promises to pay 1000 OMR in return of this favour. Question a. Is this a valid contract? b. Is this agreement enforceable by law? Explain why or why not?Thomas Richey operates a small shop that sells fishing equipment. His postclosing trial balance on December 31, 20X1, is shown below. Richey plans to enter into a partnership with Kathryn Price, effective January 1, 20X2. Profits and losses will be shared equally. Richey is to transfer all assets and liabilities of his store to the partnership after revaluation as agreed. Price will invest cash equal to Richey’s investment after revaluation. The agreed values are Accounts Receivable (net), $58,000; Merchandise Inventory, $199,600; and Furniture and Equipment, $49,200. The partnership will operate as Richey and Price Angler’s Outpost. Richey's Tackle Center Postclosing Trial Balance December 31, 20X1 Account Name Debit Credit Cash $19,000 Accounts Receivable 65,600 Allowance for Doubtful Accounts $10,000 Merchandise Inventory 180,000 Furniture and Equipment 116,400 Accumulated Depreciation 92,000 Accounts Payable…Referring to relevant statutory provisions and common law, discuss whether, for the current income year, the following amounts would be as an allowable deduction against assessable income. Provision for the estimated amount of trade debtors’ accounts, which might not be collected. An amount of $9,000 paid to a solicitor for preparing a partnership deed. Newspapers purchased by an accountant who advises clients on financial and investment matters. 4. Travel cost of a business executive to attend a trade fair in London paid by the employer.
- In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract. (maximum 500 words)Riya writes an email promising to sell her car to Manish for $500, and Manish replies that he will pay Riya on the 24th of the month. On the 24th, Manish pays Riya and she gives him the title to the car. Manish and Riya have a(n) __________. a.) unilateral contract b.) implied contract c.) executory contract d.) executed contract5. Maria brought in her business to the partnership, the accounts receivable has a P 100,000 balance, it was agreed that the net realizable value of the receivable should be adjusted to P 75,000. What should be the amount of allowance for bad debts? a. 65,000 b. 15,000 c. 25,000 d. 55,000
- Your client is a partnership, ARP Associates, which is an engineering consulting firm. Generally, ARP bills clients for services at the end of each month. Client billings are about 50,000 each month. On average, it takes 45 days to collect the receivables. ARPs expenses are primarily for salary and rent. Salaries are paid on the last day of each month, and rent is paid on the first day of each month. The partnership has a line of credit with a bank, which requires monthly financial statements. These must be prepared using the accrual method. ARPs managing partner, Amanda Sims, has suggested that the firm also use the accrual method for tax purposes and thus reduce accounting fees by 600. Assume that the partners are in the 35% (combined Federal and state) marginal tax bracket. Write a letter to your client explaining why you believe it would be worthwhile for ARP to file its tax return on the cash basis even though its financial statements are prepared on the accrual basis. ARPs address is 100 James Tower, Denver, CO 80208.Referring to relevant statutory provisions and common law, discuss whether, for the current income year, the following amounts would be as an allowable deduction against assessable income. a) Provision for the estimated amount of trade debtors’ accounts, which might not be collected. b) An amount of $9,000 paid to a solicitor for preparing a partnership deed. c) Newspapers purchased by an accountant who advises clients on financial and investment matters. d) Travel cost of a business executive to attend a trade fair in London paid by the employer. e) Speeding fines of $ 500 paid by an owner to a driver.7. The following transactions of Best Pizza, owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019: (see attached images) March 1 Reyes, who owns an ice cream parlor, invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000. Customers’ accounts of P50,000 were also taken over by the partnership at its realizable valuc of 80%. (Recognize an allowance for doubtful accounts for 20% of cost). Ortiz invested cash of P40,000 and pieces of furniture costing P150,000 which the partners agree to be 50% depreciated to arrive at its current fair value. May 1 Flores, an expert in pizza making, invested imported cooking equipment costing P350,000 but which fair value dropped by 40% of its cost. Flores made a down payment of P200,000 when this was purchased and issued a note for the balance half of which is still unpaid. Partners agree that the liability will be assumed, by the partnership. May 31 Partners agree that additional cash investments…
- The current account of a partner has been written up as follows. Current account Interest on capital £2,200 Balance B/d £625 Salary £1,225 Drawings £6,350 Balance c/d £12,800 Profit share £9,250 What is the correct balance carried down when the errors are corrected?Tasneem and Nazreen were friends with similar hobbies. they formed a partneship with a written partnership agreement to trade in pastry and related products as Tasnaz’s Pastry. The following were extracted from their accounting records; Balances in the ledger at 30 June 2021 R Capital: Tas 407000 Capital: Naz 363000 Current account: Tas credit balance at 1 July 2020 8052 Current account: Naz: debit balance at 1 July 2020 2640 Drawings : Tas 88000 Drawings : Naz 140000 Profit for the year 438636 Additional Information:The partnership agreement provides for the following that needs to be taken into account:1. Partners are entitled to salaries as follows:• Tas – R8 000 per month,• Naz – R10 000 per month. 2. Interest on capital accounts are allowed at 12% per year on each partners capital on a pro-rata basis. Note the following that on 1 January 2021:• Tas decreased her capital account by R27 000; and• Naz increase her capital account by R17 000. 3. Interest at 10%…A) X,Y,Z separately tender for a contract to pick up stray cows and dogs from Delhi cantonment area and restore them to cow pen and dog care units managed by MCD. However by mutual agreement they decide to share the income arising from such activity, lest one of them is granted the contract. They also agree to share the total expenses in this regard equally. Is this partnership?B) Anuj stole a cheque from his employer Yash ‘s drawer .He forged Yash’s signature and since Anuj use to collect payment on behalf of his employer, the banker in good faith ,paid the cheque in due course.Is the banker liable to the employer for the payment?
