senior articled assistant
623 Points
Joined June 2009
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