A partnership has liquidated all assets but still reports the following account

Question

A partnership has liquidated all assets but still reports the following account balances:

The partners split profits and losses as follows: Black, 30 percent; White, 30 percent; Green, 10 percent; Brown, 20 percent; and Blue, 10 percent.

Assuming that all partners are personally insolvent except for Green and Brown, how much cash must Green now contribute to this partnership? (Do not round intermediate calculations.)

  Loan from White $ 6,500                  Black, capital 3,900                  White, capital (10,300 ) (deficit)   Green, capital (4,300 ) (deficit)   Brown, capital 17,500   Blue, capital (13,300 ) (deficit)

Explanation / Answer

Loan from White      6,500                Black, capital      3,900                30% White, capital - 10,300 (deficit) 30% Green, capital -   4,300 (deficit) 10% solvent Brown, capital    17,500 20% solvent Blue, capital - 13,300 (deficit) 10% Total cash required Loan from White      6,500 White, capital    10,300 Green, capital      4,300 Blue, capital    13,300 Total cash required    34,400 Remaning partners              2 each partner contribution    17,200 Brown capital    17,200 Grren contribution    17,200 Brown would get $300 cash

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