Fifth Instalment 20,100 27.000 8.040 9,000 8,040 12.000 4,020 6,000 Total 169 99,000 Total payment made to each partner will, of course be same under both the methods Illustration 7 The partners A, B and C have called you to assist them in winding up the affairs of their partnership on 30th June, 2005. Their Balance Sheet as on that date is given below: Liabilities Rs. Assets Rs. Sundry Creditors 17,000 Cash at Bank 6,000 Capital Accounts Sundry Debtors 22,000 67,000 Stock in trade 14,000 B 45,000 Plant and Equipment 31,500 Loan-A 12,000 Loan-B 7,500 1.60.500 1.60.500 (1) The partners share profit and losses in the ratio of 5:3:2 (2) Cash is distributed to the partners at the end of each month (3) A summary of liquidation transactions are as follows: July 2005 Rs. 16,500 - collected from Debtors, balance is uncollectable, Rs. 10,000 - received from sale of entire stock. Rs. 1,000 liquidation expenses paid. Rs. 8,000 - cash retained in the business at the end of the month. August 2005 Rs. 1,500 - liquidation expenses paid. As part payment of his Capital, C accepted a piece of equipment for Rs. 10,000 (book value Rs. 4,000). Rs. 2,500 - cash retained in the business at the end of the month. September 2005 Rs. 75,000 - received on sale of remaining plant and equipment. Rs. 1,000 - liquidation expenses paid. No cash retained in the business. Required : Prepare a schedule of cash payments as of September 30, showing how the cash was distributed