Sim and Sam formed a partnership whose sole business was to purchase well-bred horses that ran in various races in South Africa. They both met as usual at 10 in the morning and decided to purchase a horse named ‘Beauty’ for R50,000. After Sim left, Sam decided to purchase another well-bred horse called ‘Champion’ for R50,000.In the weekly auction, Champion was sold for a net profi t of R1,000,000 while Beauty did not attract any buyer. Sim came to know of it and claimed that half of R1,000,000 that Sam made belonged to him. Alternatively, all the profi ts that Sam made belonged to the partnership.Required:Advise Sim. (10 marks)
