Question 1
Ajay is a practising Chartered Accountant.Vijay is a practising Advocate representing matters in courts of law. Ajay and Vijay agree to help each other in matters involving their professional expertise. Accordingly Ajay recommends Vijay in all tax litigations in courts of law. Vijay consults Ajay on all matters relating to finance and related matters, which come to him for arguing in various courts of law. Ajay seeks your advise on how he and Vijay should (i) remunerate each other (ii) ‘share’ the remuneration.(Final Nov 2000)
Hint: CLAUSE 2 & 3 read with amendments
Question 2
Discuss whether the following actions by a Chartered Accountant would amount to misconduct or not:
(i) A Chartered Accountant practising in India enters into partnership with
(a) A Certified Public Accountant in New York.
(b) A Chartered Accountant from the Institute of Chartered Accountants in England and Wales in London, and in each case, the members concerned take the profits earned in their own country.
Will it make any difference, if an Indian Chartered Accountant is practising outside India and becomes a partner with the aforesaid accountants? (4 marks)
QUESTION3
Mr. Q a Chartered Accountant in practice as a proprietor died in a road accident. His widow sold the practice of her husband to another Chartered Accountant in practice for Rs.5 lakhs. The price also included right to use the firm name of Mr. Q.
(4 mar)
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