The following is the Balance Sheet of A, B, C on 31 st December, 2023 when they decided to dissolve the partnership: Liabilities ₹ Assets ₹…

(i) Statement showing Realization of Cash Sr. No. Particulars Realization (₹) Creditors (₹) Partner’s Loan (₹) Partner’s Capital (₹) 1 After taking into account cash balance and amount set aside for expenses 1,500 1,500 - - 2 4,500 1,500 3,000 - 3 5,850 - 4,500 1,350 4 9,000 - - 9,000 Including Savings in Exp 30,150 - - 30,150 51,000 3,000 7,500 40,500 To ascertain the amount distributable out of each installment realized among the partners, the following table will be constructed: Statement of Distribution on Capital Accounts (1) Calculation to determine the mode of distribution of 1,350 Particulars Total (₹) A (₹) B (₹) C (₹) Balance 63,000 22,500 27,000 13,500 Less: Maximum Loss in 2:2:1 (61,650) (24,660) (24,660) (12,330) +1,350 -2,160 +2,340 +1,170 Deficiency of A's capital written off against those of B and C in the ratio of their capital 27,000: 13,500, (Garner vs. Murray) (1,440) (720) Manner in which the first - 1,350 should be distributed + 900 + 450 (2) Distribution of 9,000 Particulars Total (₹) A (₹) B (₹) C (₹) Balance after (1) 61,650 22,500 26,100 13,050 Less: Maximum Loss in 2:2:1 (52,650) (21,060) (21,060) (10,530) Balance available and distributed 9,000 1,440 5,040 2,520 (3) Distribution of 30,150 Particulars Total (₹) A (₹) B (₹) C (₹) Balance after (2) 52,650 21,060 21,060 10,530 Less: Maximum Loss in 2:2:1 (22,500) (9,000) (9,000) (4,500) Distribution of 30,150 30,150 12,060 12,060 6,030 Summary: Particulars Total (₹) A (₹) B (₹) C (₹) Balance 63,000 22,500 27,000 13,500 Total Amounts Paid 40,500 13,500 18,000 9,000 Loss 22,500 9,000 9,000 4,500