80 Ala. 192 | Ala. | 1885
-Stated as the account was in this case, it was and is impossible to reach correct conclusions, and the whole report should have been set aside, and a re-reference awarded, with instructions. In the settlement of a partnership account which involves items of debit and credit against one, or each of the partners, a simple accounting in which one partner is set down as a creditor, and the other as a debtor, can never lead to correct results. This, for the obvious reason that in the
In stating the account, that of each member with the firm must be stated separately. Each must be debited with whatever of the partnership effects have come to his hands. This will include all collections and cash sales made by each, and all partnership effects used by each or converted or applied to individual purposes, or applied with his approval or ratification to his individual uses or debts. ITe must be credited with all disbursements or expenditures . he has made for the firm. In-this column of expenditures will be embraced any payment of partnership debts or liabilities, whether made with partnership or individual funds. ' Bobinson will be entitled to a credit in stating his account with the partnership for his proper wages as bookkeeper, and Garrett will be entitled to a credit in his account with the firm for all lumber of his which went into the firm at its formation, and was disposed of by it. He will be charged with the value of the lumber left on the yard at the termination of the partnership, and used by him. The two individual accounts with the firm being thus separately taken, a proper basis will bo furnished for stating the account between the partners themselves. And in this third, or final account, each partner must bo charged with any individual liability of his, which has been paid or cancelled by the other. The payment alleged to have been made by Garrett to Feagin of the
Several of the exceptions — notably, the first and second filed by the defendant — ought to have been sustained.
Reversed and remanded.