Under the UPA, upon termination of a firm, each partner is entitled to the return of his capital after partnership creditors have been paid.

Question

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Under the Uniform Partnership Act (UPA), upon the termination or dissolution of a partnership, the assets of the partnership are distributed in a specific order: first to creditors (including partners who are creditors), then to partners for the return of their capital contributions, and finally, any remaining amounts are distributed to partners according to their respective shares in the profits.

Under the UPA, Upon Termination of a Firm, Each Partner