Partnerships Liquidation Partner Does Not Pays Partnershi

Partnership liquidation will go through the closing process of a partnership. We will work the partnership closing process in Excel. Partnership liquidation needs to happen in specific step, a liquidating order, to avoid problem. The first step in the partnership liquidation is to sell the assets and recognize any gain or loss on the sale. If this steps results in a partner capital account being less then zero, or flipping from a credit balance to a debit balance, we need to see if we can collect money from the partner with a negative balance. If the partner will not pay we will need to allocate the negative capital account to the remaining partners to continue. Then we can pay off liabilities. Once we are left with only cash and capital we can pay off the partners.
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