Question

The following differences have arisen among A, B and C. Give your decision regarding the same:

1. A used ₹ 1,00,000 belonging to the firm and made a profit of ₹ 75,000 in speculation. B and C want that A should return ₹ 1,75,000 to the firm, while A wants to return ₹ 1,00,000 only.
2. A used ₹ 50,000 belonging to the firm and suffered a loss of ₹ 20,000 in speculation. He wants to return only 30,000.
3. A and B want to admit Mohan as a new partner, but C does not agree.
4. A and B want to purchase goods from Raghubir for the firm, but C does not agree.

Answer 1

1. A should return ₹ 1,75,000 to the firm, as both the capital and profit earned using the firm’s money belong to the firm.
2. A should return the full ₹ 50,000 to the firm, as the loss in speculation is to be borne by him personally.
3. The firm cannot admit Mohan as a new partner, as it requires the consent of all existing partners, and C is not in agreement.
4. A and B can purchase goods from Raghubir since it is an ordinary matter of business and the decision of the majority partners will prevail.