Question

meaning of piecemeal distribution of cash​

Answer 1

PIECEMEAL DISTRIBUTION OF CASH: If all the assets are realized immediately on dissolution of the firm, then all the liabilities may also be paid off and the partners will receive the amounts due to them on capital accounts at that time.

Answer 2

Piecemeal distribution of cash​:

A Piecemeal distribution of cash is an accounting term that refers to a situation that is caused due to the  dissolution of the firm. When the firm is dissolved, all the settlements cannot be paid on the same day,  that’s what we assume but, practically that’s unrealistic because of the long process of getting the firm’s assets and liabilities realized.

Due to this long process, the realized assets are then distributed in such a  way that the owed balance of the partners is still left in their profit sharing ratio. This is called the  piecemeal distribution method.