Question

The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,500 but no other assets. Liabilities amount to $37,000. The capital balances are Anderson (30% of profits and losses) Berry (20%) Hammond (30%) Winwood (20%) $ 25,500 19,000 (28,000) (deficit) (32,000) (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? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Answer 1

@ Leablety $37000 - = the capital Belly Total 19000 44,500 100 57.3 4207 15,500 8882 6618 Ratio Les Cash $27500 A cash regrined = 15,500 @ Berry need to contribute the amount as por the capt Contributing raho, which is to Particular Anderson Capital in & 25,500 Rako Amount recquired to be 8882 6618 contributed in Capital contributing 61 Hammond must contribute to the deficit of his Capstal account - $ 28,000 b-2 cash required to disburse the excess bability (caluclated above) = 15,500 Lees Amount contributed by hammond - 24000 Remaining balance required to dealuse 8500 Deebusement of Remaining Fund Particular Anderson Belly Hammond Capital balanas RSSTO - 19000 4207 5703 Capitalmato 3630 8500 amount dlsburlemor 48 70

wiewood contribution to the defiat of his capital account - $32,000 hers) Excous trabally over cash available 8500 Remaining balance require to be -23;500 disbursed Desbuvement of Remaining amount Anderson Beers Winwood Total Capital balances 25,500 19000 0 44,500 Ratio 5703 lou 4207 100 Remaining amount . 13465 10035 o 23500 | Desbussament So Anderson will get = $13465 Particulars