4(b) Following is the Balance Sheet of X, Y and Z who were sharing in the ratio of 2:3:5 as at 31st March, 2020, when they decided to dissolve the firm: Liabilities * (lacs) Assets (lacs) Bank Loan (Secured on Building) 25.00 Land Buildings 25.00 Mrs X's Loan (Secured on Stock) 15.00 Machinery 60.00 Creditors 10.00 Stock 15.00 X's Loan 5.00 Debtors 20.00 Y's Loan 2.50 Cash at Bank 10.50 X's Capital 90.00 Others Assets 127.00 Y's Capital 45.00 Z's Capital 15.00 Reserves 50.00 257.50 257.50 Note: There was a bill for 50,000 due on 15th Aug. under discount. The assets were realised as follows: 15th April Stock * 16 lacs Expenses 0.50 lac 15th May Land & Building *20.50 lacs Expenses 1.00 lac 15th June Debtors * 10 lacs Expenses 0.75 lac 15th July Debtors 9.25 lacs Expenses 0.75 lac 15th July X decided to take Machinery at 55 lacs 15th Aug. Other Assets * 150 lacs Expenses 5.75 lacs Partners decided to keep a minimum cash balance of 50,000 upto May and 25,000 thereafter. The Acceptor of the bill under discount met the bill on due date. Required: Prepare a Statement showing the Distribution of Cash: (a) among all the Claimants other than partners. [4 Marks (b) among all the partners using Maximum Loss Method for distribution of cash. [ 4.75 Marks] 2 4(b) Following is the Balance Sheet of X, Y and Z who were sharing in the ratio of 2:3:5 as at 31st March, 2020, when they decided to dissolve the firm: Liabilities * (lacs) Assets (lacs) Bank Loan (Secured on Building) 25.00 Land Buildings 25.00 Mrs X's Loan (Secured on Stock) 15.00 Machinery 60.00 Creditors 10.00 Stock 15.00 X's Loan 5.00 Debtors 20.00 Y's Loan 2.50 Cash at Bank 10.50 X's Capital 90.00 Others Assets 127.00 Y's Capital 45.00 Z's Capital 15.00 Reserves 50.00 257.50 257.50 Note: There was a bill for 50,000 due on 15th Aug. under discount. The assets were realised as follows: 15th April Stock * 16 lacs Expenses 0.50 lac 15th May Land & Building *20.50 lacs Expenses 1.00 lac 15th June Debtors * 10 lacs Expenses 0.75 lac 15th July Debtors 9.25 lacs Expenses 0.75 lac 15th July X decided to take Machinery at 55 lacs 15th Aug. Other Assets * 150 lacs Expenses 5.75 lacs Partners decided to keep a minimum cash balance of 50,000 upto May and 25,000 thereafter. The Acceptor of the bill under discount met the bill on due date. Required: Prepare a Statement showing the Distribution of Cash: (a) among all the Claimants other than partners. [4 Marks (b) among all the partners using Maximum Loss Method for distribution of cash. [ 4.75 Marks] 2