1. P, Q and S will bring cash to make good their share of the loss on realization. In actual practice they will not be bringing any cash; only a notional entry will be made. 2. On following Garner Vs. Murray rule, solvent partners P and Q have to bear the loss due to insolvency of a partner R in their fixed capital ratio. Illustration 2 Amal and Bimal are in equal partnership. Their Balance Sheet stood as under on 31st March, 2012 when the firm was dissolved: Creditors A/C Amal's Capital A/C 4,800 Plant & Machinery 750 Furniture Debtors Stock Cash Bimal's drawings 5.550 2,500 500 1.000 800 200 550 5.550 Current account balances have been arrived after adjusting profit and loss account debit balance as follows: 36,000 - 500 = 5,500 * 2,000 + 400 - 2,400 *** 9.000 - 4,000 = 75,000 018 The assets realised as under: Plant & Machinery 1,250 Furniture 150 Debtors 400 Stock 500 The expenses of realisation amounted to 175. Amal's private estate is not sufficient even to pay his private debts, whereas Bimal's private estate has a surplus of 200 only. Show necessary ledger accounts to close the books of the firm