Prepare a statement showing distribution of cash by applying Excess Capital Method.

Steps to Solve

1. Calculate Net Realizations
   Begin by adding up the total net realizations from the given dates:
   $$ 50,000 + 10,000 + 67,500 = 127,500 $$

2. Deduct Realization Expenses
   Subtract the total realization expenses from the total net realizations. The realization expenses total $12,500$:
   $$ 127,500 - 12,500 = 115,000 $$

3. Determine Cash Available for Distribution
   The amount available for distribution among Rajaram, Tukaram, and Sakharam is $115,000$.

4. Calculate Individual Capital Contributions
   Determine each partner's capital contribution using the balance sheet:

• Rajaram: $1,22,500$
• Tukaram: $52,500$
• Sakharam: $25,000$

5. Total Capital Contributions
   Calculate the total capital contributions:
   $$ 1,22,500 + 52,500 + 25,000 = 2,00,000 $$

6. Calculate Share of Cash According to Excess Capital Method
   Calculate each partner's share based on their contribution ratio to total capital:

• Rajaram's share:
  $$ \frac{1,22,500}{2,00,000} \times 115,000 = 70,875 $$
• Tukaram's share:
  $$ \frac{52,500}{2,00,000} \times 115,000 = 30,375 $$
• Sakharam's share:
  $$ \frac{25,000}{2,00,000} \times 115,000 = 14,375 $$

7. Prepare the Distribution Statement
   Summarize the distribution shares in a clear statement format:

• Rajaram: $70,875$
• Tukaram: $30,375$
• Sakharam: $14,375$