Question 4

 

Andy, Bill and Chris are partners. Their business is not particularly profitable, and only Andy has any personal assets. The partnership has a cheque account with Westpac which includes an overdraft facility to a maximum of $15,000. Andy has just died, and the bank has asked you to what extent it may have recourse against his assets. The history of the partnership account over the last week is as follows:

 

Date                          Cheques paid                        Deposits                    Balance

 

August 5                   -----                                        -----                            Cr 2,000

August 6                                   Andy dies

August 8                    10,000                                    -----                            Dr 8,000

August 9                                   Bank receives notice of Andy’s death

August 10                    6,000                                    2,000                          Dr 12,000

August 12                    3,000                                    4,000                          Dr 11,000

 

 

 

Question 5

 

Daisy has two accounts with her bank. On the basis of the last statements she has received from the bank, her No.1 Account is overdrawn by $5,000 while her No.2 Account has a credit of $5,500. For some time the bank has been asking Daisy to reduce the overdraft in her No.1 Account but she has not complied. A few days ago she wrote a cheque on her No.2 Account for $5,000 made out to the Commissioner of Taxation. Yesterday she received two letters. One was from the Commissioner advising her that her cheque had bounced. The other was from the bank advising her that it had exercised its right of combination and had taken $5,000 out of the No.2 Account to repay the overdraft. Advise Daisy whether or not the bank has acted within its rights. 

 

 

Question 6

 

At the end of May the current account of Everest Pty Ltd was overdrawn by $10,000. Discussions ensued between the bank and the manager of the company, and it was agreed that this account should be named the No.1 Account and that a new account, the No.2 Account, should be opened and kept strictly in credit. However, the company has now gone into insolvent liquidation. There is a credit of $10,000 in the No.2 Account and the liquidator is claiming it on behalf of unsecured creditors. In response, the bank claims that it is entitled to combine both accounts and that the money therefore belongs to it. Advise the liquidator.  

 

I need a relatively detailed response to each question in relation to Australian Banking Law

SuperTutor

(15)

Status NEW Posted 26 May 2017 02:05 AM My Price 6.00

-----------

Attachments

file 1495766419-Solutions file.docx preview (51 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer