pls help in accounts - pcc

Which book u r referring to????

PIECEMEAL DISTRIBUTION.....

When firm is dissolved all assets and liab are realised immediately. But assets may be realised gradually as well because all of them are not liquid..

First payment is made to creditors

Then all other outside liab...

Then partner loan AND THEN PARTNERS.

METHOD 1 RELATIVE SURPLUS CAPITAL METHOD

Q.     3 PARTNERS           A                B              C 

         PROFIT

SHARINGRATIO                5               3                2

CAPITALS                    40000         60000        20000

CALCULATE SURPLUS CAPITAL AND DISTRIBUTION AMONG PARTNERS

I WILL PROVIDE ANSWER WAIT

                                                                                   A                               B                                          C 

                            CAPITALS                                   40000                      60000                                  20000

                                PSR                                                   5                              3                                           2

                                  DIVIDE IN PSR                           8000                       20000                                   10000

TAKE THE MINIMUM CAPITAL SHARE AS BASE

THE MINIMUM IS 8000 I.E A SO A CAPITAL TO

BE TAKEN AS BASE                                    -40000                              -24000                                 -16000

A'S ORIGINAL CAPITAL IS 40000 SO SUBTRACT

>>>>>>   A            B                  C

             40000      40000*3/5      40000*2/5

(COMPLETE)         {PROPORTIONATE)      {PROPORTIONATE)

BECAUSE IT IS BASE

                                               EXCESS CAPITAL        NIL                        36000                                 4000

NOW C WILL BE MINIMUM

                            SO HIS BASE WILL BE TAKEN                                   -6000                                 -4000                                                                                                                  (PROPORTIONATE)

                                               EXCESS CAPITAL        NIL                      30000                                 NIL

    SO IN THIS CASE FIRST 30000 OUT OF REALISED ASSETS WILL BE PAID TO B THEN NEXT 10000 AMONG A AND C IN RATIO 6000 4000 THEN SUBSEQUENT REALISATIONS WILL BE DISTRIBUTED IN 5;3;2                                                        

I WAS NOT ABLE TO PRESENT IT WELL.....

SO CONSULT A GOOD BOOK

IF ONE OF THE PARTNER BECOMES INSOLVENT,

THE OTHER PARTNERS PAY HIS SHARE OF LOSSES IN CAPITAL RATIO.

SO HE GETS THE REALISED VALUE OF ASSETS AFTER THE OTHER PARTNERS HAVE RECIEVED THE AMOUNT THEY PAID ON HIS BEHALF...

YOU WILL FIND THAT THERE ARE TOO MANY DIFFERENT PARTS IN THIS CONCEPT SO IF U WANT TO GAIN COMPLETENESS YOU HAVE TO CONSULT A FRIEND OR TEACHER 

thnx very much