$12$ On June $30,$ Year $1,$ the partners of Harvey and Company agreed to the liquidation of their partnership. On that date the liability of the partnership to individual partners and the partners$$ capital balances and profit and loss ratios were as follows:

P & L

Harvey loan                        $$21,600$

Ronald loan                         $36,000$

Harvey capital                    $72,000\mathrm{.}4$

Ronald capital $\mathrm{ \; \; \; \; \; \; \; \; \; \; \; 7}7,400\mathrm{.}3$

 

 Jones capital                    $64,800\mathrm{.}2$ 

 

Kirk capital $\mathrm{ \; \; \; \; \; \; \; \; \; \; \; \; 3}6,000\mathrm{.}1$

Required:

$($a$)$ Prepare a calculation schedule as at June $30,$ Year $1,$ that will clearly indicate how cash will be distributed to partners as it becomes available for distribution.

$($b$)$ In July and August, cash was distributed correctly to partners. This resulted in Kirk receiving payments totalling $$7,500.$ Calculate how much cash has been distributed as at August $31$ by the partnership to each of Harvey and Ronald as reductions of their respective loan balances.