Unformatted text preview: such an existing contract, the partners conducting the winding up would have authority to do so. 23. Among the three partners, Andy's proper share of the amount still owed to creditors is $14,000. The total partnership loss here is $228,000 ($180,000 in contributed capital plus $48,000 in debt remaining after liquidation of assets). Andy's share of the loss is $114,000 (50 percent of $228,000), because in the absence of an agreement on loss sharing, losses are shared in the same manner that profits are shared. Because Andy has already lost his $100,000 capital contribution, he must contribute only another $14,000. If creditors compel him to pay more than $14,000, he will have a claim against Barney and Helen for any amounts he pays in excess of $14,000. Answers to Student Study Guide and Workbook Questions 64...
View Full Document
This note was uploaded on 04/30/2010 for the course BUSLAW 301 taught by Professor Abu during the Spring '09 term at Abu Dhabi University.
- Spring '09