Example on Piecemeal Distribution of Cash

A, B and C are in partnership sharing profits and losses in the ratio of 3:2 :1 They decided to dissolve the
business on 31.12.2018. On which date their balance sheet was as follows:
Liabilities Rs. Assets Rs.
Capital Accounts: A 77,400 Land and Building 61,620
B 21,360 Motor Car 10,320
C 22,200 1,20,960 Investments 2,160
Government taxes Outstanding 16,000 Stock 39,060
Secured Creditors 24,000 Debtors 22,560
Unsecured Creditors 20,640 Cash 51,880
Loan Account: C 6,000
1,87,600 1,87,600
The assets were realized piece-meal as follows and it was agreed that cash should be distributed as and
when realized.
15.01.2019 – Rs.20,760; 20.02.2019 – Rs.55,800; 23.03.2019 – Rs.7,200; 15.04.2019 – C took over
investments at a value of Rs 2,520; 27.04.2019 – Rs38,400. 30.04.2019- A purchased unsold stock at Rs
6000.
Dissolution expenses were originally provided for an estimated amount of Rs.5400 but actual
amount spent on 29.03.2019 was Rs.3840. The Unsecured creditors were settled for Rs.20,160.
You are required to prepare a statement showing distribution of cash amongst the partners.