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Bala and Yesufu are joint directors and shareholders of YEBA Limited, which was incorporated in 2015. Yesufu was appointed the Managing Director, and Bala, the Operations Director. The Articles of Association of YEBA Limited were silent on directors’ remuneration, and there was no written agreement to pay remuneration to the directors of the company.
Bala had attended several board meetings from 2015 to 2017, travelling from Abuja to Lagos at his own expense. In 2018, Bala wrote to YEBA Limited through Yesufu, claiming N2 million annual director’s remuneration for years 2015 to 2017, as well as a total sum of N2 million reimbursement of his travelling expenses for the same period.
YEBA Limited has refused to pay both claims, insisting that there is no agreement for such payments to be made to the directors of the company. Bala is aggrieved and intends to take legal action against YEBA Limited.
Required:
Advise Bala, stating the legal issues involved.
(8 Marks)
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The following is a summary of the petty cash transactions for a week:
What sum should be reclaimed by the cashier at the end of the week?
A. N550,000
B. N500,000
C. N400,000
D. N340,000
E. N160,000
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a) A partner in a firm in the course of an authorized duty incurred liability of which he/she made personal payment. The partner later made claims of reimbursement of expenses incurred. At a meeting of the partners of the firm, the reimbursement was declined.
Required: Explain whether the partner has any rights to claim reimbursement. (7 marks)
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Jabi is a partner of an Accounting Firm. The firm’s office is located in Accra. In May 2019, Jabi was assigned an approved accounting duty outside Accra with the use of the Firm’s car. During the journey, the car had a burst tyre. The driver of the car, for unexplained reasons, had no spare tyre on the car. He therefore recommended the purchase of a brand new tyre, which Jabi bought with his personal money. He obtained a receipt in the name of the Firm.
Jabi sought for a refund of his money amounting to GH¢1,280 for the tyres bought. The Managing Partner refused the refund, saying it was the sole responsibility of Jabi to bear the expenditure.
Required:
i) Advise the Manager as to why the Firm should bear the full or part of the cost and not only Jabi.
(4 marks)
ii) Advise Jabi why it is not the sole responsibility of the firm to bear the cost.
(6 marks)
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Apina is a partner in an accounting firm known as Dtd & Associates. On 3rd October 2018, he went out to execute an approved course of duty for the firm. Instead of being assigned an official car, the supervising partner asked that he should use his own car and provision was made for his fuel. In the course of duty, he burst a tire. He brought the receipt of the replaced tire bought to the supervising manager for a refund. The supervising manager, however, refused to reimburse Apina.
Required:
State TWO (2) reasons why the firm should reimburse Apina. (8 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Bala and Yesufu are joint directors and shareholders of YEBA Limited, which was incorporated in 2015. Yesufu was appointed the Managing Director, and Bala, the Operations Director. The Articles of Association of YEBA Limited were silent on directors’ remuneration, and there was no written agreement to pay remuneration to the directors of the company.
Bala had attended several board meetings from 2015 to 2017, travelling from Abuja to Lagos at his own expense. In 2018, Bala wrote to YEBA Limited through Yesufu, claiming N2 million annual director’s remuneration for years 2015 to 2017, as well as a total sum of N2 million reimbursement of his travelling expenses for the same period.
YEBA Limited has refused to pay both claims, insisting that there is no agreement for such payments to be made to the directors of the company. Bala is aggrieved and intends to take legal action against YEBA Limited.
Required:
Advise Bala, stating the legal issues involved.
(8 Marks)
Find Related Questions by Tags, levels, etc.
The following is a summary of the petty cash transactions for a week:
What sum should be reclaimed by the cashier at the end of the week?
A. N550,000
B. N500,000
C. N400,000
D. N340,000
E. N160,000
Find Related Questions by Tags, levels, etc.
a) A partner in a firm in the course of an authorized duty incurred liability of which he/she made personal payment. The partner later made claims of reimbursement of expenses incurred. At a meeting of the partners of the firm, the reimbursement was declined.
Required: Explain whether the partner has any rights to claim reimbursement. (7 marks)
Find Related Questions by Tags, levels, etc.
Jabi is a partner of an Accounting Firm. The firm’s office is located in Accra. In May 2019, Jabi was assigned an approved accounting duty outside Accra with the use of the Firm’s car. During the journey, the car had a burst tyre. The driver of the car, for unexplained reasons, had no spare tyre on the car. He therefore recommended the purchase of a brand new tyre, which Jabi bought with his personal money. He obtained a receipt in the name of the Firm.
Jabi sought for a refund of his money amounting to GH¢1,280 for the tyres bought. The Managing Partner refused the refund, saying it was the sole responsibility of Jabi to bear the expenditure.
Required:
i) Advise the Manager as to why the Firm should bear the full or part of the cost and not only Jabi.
(4 marks)
ii) Advise Jabi why it is not the sole responsibility of the firm to bear the cost.
(6 marks)
Find Related Questions by Tags, levels, etc.
Apina is a partner in an accounting firm known as Dtd & Associates. On 3rd October 2018, he went out to execute an approved course of duty for the firm. Instead of being assigned an official car, the supervising partner asked that he should use his own car and provision was made for his fuel. In the course of duty, he burst a tire. He brought the receipt of the replaced tire bought to the supervising manager for a refund. The supervising manager, however, refused to reimburse Apina.
Required:
State TWO (2) reasons why the firm should reimburse Apina. (8 marks)
Find Related Questions by Tags, levels, etc.
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