Which andrew could be held personally responsible

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Problem 1: The variable capital balances method (method 1), requires the profit or loss and partner's drawings to be closed off to each partner's:

Select one:

a. cash account.

b. retained earnings accounts.

c. profit or loss summary account.

d. capital account.

Problem 2: Cameron and Andrew each invested $45 000 in a partnership where they agreed to share profits as Cameron: 30%; Andrew 70% . The partnership business was unsuccessful and now has zero assets. In addition, they are being sued for $100 000 by a supplier for non-payment of invoices. What is the amount for which Andrew could be held personally responsible if the lawsuit is successful? (Ignore any possible legal costs.)

Select one:

a. $70 000

b. $45 000

c. Zero

d. $100 000

Reference no: EM132759275

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