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Advanced Method

Step 15:  When all of the bidding is done, distribute the money and property. 

Collect money from any outsiders who successfully bid on items and from anyone with a negative cash balance.  Add these amounts to the pool of money and distribute it along with the property as the share accounts direct.

Example 1:  Let's look again at the share accounts for the Snider auction:



After all of the lots are auctioned, the record-keeper should make a "cash account" that includes all of the cash receipts and payments.  In the Snider family example, we started with $600 in cash.  To that we add the $1,300 that the estate liquidator paid for the green sofa, Bob's payment of $2,525, and Mary's payment of $625.  The total amount of cash receipts, then, is $5,050.  That amount should equal the amount that needs to be paid to recipients with positive cash balances.  In this case, Steve will receive the entire $5,050.   


Steve ends up with $5,050, a small TV worth $25, and a painting worth $3,500 for a total share of $8,575.  Bob pays $2,525 of his own money, but ends up with a $1,050 walnut desk, a $150 lawnmower, and a $9,900 violin.  His total share is also $8,575.  Mary pays $625 into the pool of cash, and gets a $500 piano, a $300 ceramic figurine, a Ford SUV worth $8,000, and a large TV worth $400.  Her total share is also worth $8,575.

The total value of the property given to Steve, Bob, and Mary is $8,575 X 3 = $25,725.


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Copyright 2004  Lori Alden.  All rights reserved.