Junius and caesar orally agreed to become partners in a

Assignment Help Cost Accounting

Reference no: EM13370411

Junius and Caesar orally agreed to become partners in a food testing business. Caesar, who had experience in food testing work, was to operate business. Junius was to take no active part but was to contribute the whole $500,000 capitalization. Caesar worked ten hours a day at the king's house, for which he was paid nothing. Nevertheless, despite Caesar's best efforts, the business failed. The $500,000 capital was depleted, and the partnership owed $500,000 in debts. Prior to failure of the partnership business, Junius became personally insolvent; consequently, the creditors of the partnership collected the whole $500,000 indebtedness from Caesar, who was forced to sell his home and farm to satisfy the indebtedness. Junius later regained his financial responsibility, and Caesar brought an suitable action against Junius for

(a) one-half of the $500,000 he had paid to partnership creditors and

(b) one-half of $80,000, the reasonable value of Caesar's services during operation of the partnership. Who will prevail and why?

Reference no: EM13370411

Questions Cloud

Prepare a 3-year schedule of interest bond and revenue : prepare a 3-year schedule of interest bond and revenue discount amortization applying the straight-line method ?here is

A city orders a new computer for its general fund at an : a city orders a new computer for its general fund at an predictable cost of 88000. its actual cost when received is

Rensing inc has 800000 of 6 percent preferred stock and : rensing inc. has 800000 of 6 percent preferred stock and 1200000 of common stock outstanding each having a par value of

Gerrad manufacturing has projected sales of its product for : gerrad manufacturing has projected sales of its product for the next six months as givenjanuary 300 unitsfebruary 700

Junius and caesar orally agreed to become partners in a : junius and caesar orally agreed to become partners in a food testing business. caesar who had experience in food

1 200002 250003 300004 350005 40000rieger international is : 1 200002 250003 300004 350005 40000rieger international is attempting to determine the feasibility of investing 95000

Evaluate total variable cost per dozen pretzelsevaluate : evaluate total variable cost per dozen pretzelsevaluate sales price per dozen pretzels using 120 markup on variable

Bell company acquires 80 percent of demers company for : bell company acquires 80 percent of demers company for 500000 on 1st january 2009. demers reported common stock of

Present an essay on legal issues surrounding solyndra the : present an essay on legal issues surrounding solyndra the california based solar panel manufacturer. you require to

User Account

All Pages