QU 6,Chapter 15

Partnership , liquidations of personally insolvent partners....

The partnership of Anderson,Berry,Hammond,and Winwood is being liquidated.

It currently holds cash of $20,500 but no other assets. Liabilities amount to $28,800.

The capital balances are :

Anderson (30% of profits and losses) $ 25,700

Berry (30%) 26,000

Hammond (20%) (21,000 ) (deficit)

Winwood (20%) (39,000 ) (deficit)

a.If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?

b-1.If only Winwood is personally insolvent, how much money must Hammond contribute?

b-2.If only Winwood is personally insolvent, how will Hammond's contribution (funds) be disbursed?

c.If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?