Learning outcome 4 Distribution Example

Do the following distribution. You are entitled to a distribution fee of 10% on the amount to be
distributed.

Outstanding debt for:

Creditor A: R 10.00

Creditor B: R 20.00
Creditor C: R 30.00

Creditor D: R 40.00

Amounts paid by debtor to be distributed:

1st Distribution R20

2nd Distribution R30
1st Distribution
Outstanding debt
A: R 10.00
B: R 20.00
C: R 30.00
D: R 40.00
Total creditors R 100.00

Amount to be distributed:
R 20.00
Distribution costs R 2.00
Available for distr R 18.00

Distribution:
10 18
A= X = R 1.80
100 1

20 18
B= X = R 3.60
100 1

30 18
C= X = R 5.40
100 1

40 18
D= x = R 7.20
100 1

Total R 18.00
2nd Distribution
Outstanding debt
A: R 8.20
B: R 16.40
C: R 24.60
D: R 32.80
Total creditors R 82.00

Amount to be distributed:
R 30.00
Distribution costs R 3.00
Available for dist R 27.00

Distribution:
8.20 27.00
A= X = R 2.70
82.00 1.00

16.40 27.00
B= X = R 5.40
82.00 1.00

24.60 27.00
C= X = R 8.10
82.00 1.00

32.80 27.00
D= x = R 10.80
82.00 1.00

Total R 27.00
3rd Distribution
Outstanding debt
A: R 5.50
B: R 11.00
C: R 16.50
D: R 22.00
Total creditors R 55.00

Amount to be distributed:
R 50.00
Distribution costs R 5.00
Available for dist R 45.00

Distribution:
5.50 45.00
A= X = R 4.50
55.00 1.00

11.00 45.00
B= X = R 9.00
55.00 1.00

16.50 45.00
C= X = R 13.50
55.00 1.00

22.00 45.00
D= x = R 18.00
55.00 1.00

Total R 45.00
 Summary

1st Distribution 2nd Distribution 3rd Distribution

Outstanding debt Outstanding debt Outstanding debt
A: R 10.00 A: R 8.20 A: R 5.50
B: R 20.00 B: R 16.40 B: R 11.00
C: R 30.00 C: R 24.60 C: R 16.50
D: R 40.00 D: R 32.80 D: R 22.00
Total creditors R 100.00 Total creditors R 82.00 Total creditors R 55.00

Amount to be distributed: Amount to be distributed: Amount to be distributed:

R 20.00 R 30.00 R 50.00
Distribution costs R 2.00 Distribution costs R 3.00 Distribution costs R 5.00
Available for distr R 18.00 Available for dist R 27.00 Available for dist R 45.00

Distribution: Distribution: Distribution:

10 18 8.20 27.00 5.50 45.00
A= X = R 1.80 A= X = R 2.70 A= X = R 4.50
100 1 82.00 1.00 55.00 1.00

20 18 16.40 27.00 11.00 45.00

B= X = R 3.60 B= X = R 5.40 B= X = R 9.00
100 1 82.00 1.00 55.00 1.00

30 18 24.60 27.00 16.50 45.00

C= X = R 5.40 C= X = R 8.10 C= X = R 13.50
100 1 82.00 1.00 55.00 1.00

40 18 32.80 27.00 22.00 45.00

D= x = R 7.20 D= x = R 10.80 D= x = R 18.00
100 1 82.00 1.00 55.00 1.00

Total R 18.00 Total R 27.00 Total R 45.00