Arav, Nirav and Bharat are in partnership. The following is their Balance Sheet as at March 31, 2025 on which date they dissolved their partnership.…

Particulars Creditors ₹ Arav’s Loan ₹ Arav ₹ Nirav ₹ Bharat ₹ Balance due 2,40,000 60,000 3,00,000 90,000 2,70,000 15 th April 2025 realised - 1,80,000 Paid to creditors (1,80,000) - - - - Balance due 60,000 60,000 3,00,000 90,000 2,70,000 1 st May, 2025 realised - 4,38,000 Paid to creditors (60,000) - - - - Paid to Arav’s loan - (60,000) - - - Balance due (1) Nil Nil 3,00,000 90,000 2,70,000 Cash available for partners (₹ 4,38,000 -60,000 -60,000) = 3,18,000 Maximum Loss (3,00,000 + 90,000 + 2,70,000 - 3,18,000) = 3,42,000 Shared in Profit & Loss ratio 5:3:2 (1,71,000) (1,02,600) (68,400) 1,29,000 (12,600) 2,01,600 Nirav’s deficiency shared by Arav & Bharat in capital ratio 100:90 (6,630) 12,600 (5,970) Cash paid [2] 1,22,370 - 1,95,630 Balance due (3) [1 - 2] 1,77,630 90,000 74,370 31 st May 2025 realised - 2,82,000 Maximum Loss [1,77,630 + 90,000 + 74,370 – 2,82,000] = 60,000 Shared in 5:3:2 (30,000) (18,000) (12,000) Cash paid (4) 1,47,630 72,000 62,370 Balance/Loss * on realisation (3-4) 30,000 18,000 12,000