Question

in piecemeal distribution of cash reserves fund is distributed among the partners in their​

Answer 1

"Profit-sharing ratio." Depending upon the method used for the piecemeal distribution.

Explanation:

• Piecemeal distribution of cash takes place when on dissolution, the assets are realized immediately and liabilities and partners can be paid off as well.
• In the piecemeal distribution of cash, there are two methods:
• 1. Proportionate Capital Method: The partners whose capitals are more than the proportionate to other partner's capital should first be refunded so much as to bring down their capitals to proportionate levels.
• 2. Maximum Loss Method: An alternative method of piecemeal distribution is to calculate the maximum possible loss on every realization after the outside liabilities and the partner's loan has been paid.