10-26 (LO 10-3) Problem The partnerthi ot Anderson Soy Hemimond. and Winwood s b

Question

10-26 (LO 10-3) Problem The partnerthi ot Anderson Soy Hemimond. and Winwood s being liquidated k cuety holds cs of $20000 but no othe points Anderson (40% of profits and losses) Berry (30%) Hamond (28%) Hinwood (1) $ 28,880 12,800 (17,880) (deficit) (25,9e0) (deficit) cBook Print Refarences e. If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this part 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 recelve from the liquidation? (Do not round intermediate celculations. Round your anawers to the nearest whole dollar amount) a 1 Berry's contribution b Hammond's contribution Creditors Anderson Betry 2 Anderson shouid receive

Explanation / Answer

Ans The distribution of partnership profits & losses is in ratio 40:30:20:10 by Anderson:berry:hammond:winwood

Liabilities left after cash being deducted:

30000-20000=10000

Now as per Insolvent partnership, RUPA requires partners to:

Berry's contribution

a

Berry's contribution

3000+857.14=3857.14 (3000 his share and 857.14 is proportionate share of personally insolvent partners). b.1. Hammond's contribution 2000+222.22=2222.22(2000 his share and 222.22 of windwoods share) b.2. creditors 10000 Anderson 13269.84 Berry 9952.38 c Anderson should receive 11625

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