Question 2: PartnershipsIn 2008, Dan Baxter and Philip Jones set up a partnership totrade...Question...

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Accounting

Question 2: Partnerships
In 2008, Dan Baxter and Philip Jones set up a partnership totrade as organic greengrocers under the name Baxter and Co. Theyfrequently purchase organic produce from Yvonne Botica, an elderlyfarmer. Orders are usually made on the firm’s letterhead, which hasthe words ‘ D Baxter and P Jones, trading as Baxter & Co’printed in small type at the bottom.
On 31 August 2017, Philip retires from the partnership andceases working in the business. Philip’s name is removed from theletterhead but no other notice is given to customers or the publicabout Philip’s retirement. In October 2017, Dan orders and receives$10,000 worth of goods from Yvonne. However, before the bill ispaid Dan becomes insolvent. Yvonne decides to sue Philip as Dan’spartner.
Answer the following questions. Refer to relevant provisions(including subsections) in the Partnerships Act 1908 to supportyour answers. (a) Is Philip liable to Yvonne for the debt incurredby Dan? In addition to relevant legislation, refer to a case tosupport your answer.
(b) What steps should Philip have taken when he retired toensure he would not be liable for post-retirement partnershipdebts?
(c) Whether Philip could be liable for holding out toYvonne.

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Answer A According to Section 32 sub section 3 4 of partnership act if retiring partner or other partner s does not give notice of retirement to public the retiring partner will be held See Answer

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In: AccountingQuestion 2: PartnershipsIn 2008, Dan Baxter and Philip Jones set up a partnership totrade...Question 2: PartnershipsIn 2008, Dan Baxter and Philip Jones set up a partnership totrade as organic greengrocers under the name Baxter and Co. Theyfrequently purchase organic produce from Yvonne Botica, an elderlyfarmer. Orders are usually made on the firm’s letterhead, which hasthe words ‘ D Baxter and P Jones, trading as Baxter & Co’printed in small type at the bottom.On 31 August 2017, Philip retires from the partnership andceases working in the business. Philip’s name is removed from theletterhead but no other notice is given to customers or the publicabout Philip’s retirement. In October 2017, Dan orders and receives$10,000 worth of goods from Yvonne. However, before the bill ispaid Dan becomes insolvent. Yvonne decides to sue Philip as Dan’spartner.Answer the following questions. Refer to relevant provisions(including subsections) in the Partnerships Act 1908 to supportyour answers. (a) Is Philip liable to Yvonne for the debt incurredby Dan? In addition to relevant legislation, refer to a case tosupport your answer.(b) What steps should Philip have taken when he retired toensure he would not be liable for post-retirement partnershipdebts?(c) Whether Philip could be liable for holding out toYvonne.