Below are steps in which partnership distribution takes place:
1) Profits and losses are allocated to partner accounts.
2) Distributions are made to partners.
3) Assets must be used to discharge creditor obligations.
4) Partners with deficit balances should make up the balance or other partners make it up.
In what order should these occur?

Question

Quizplus · Accepted Answer

Assets must first be used to discharge creditor obligations.
Profits and losses are allocated to partner accounts.
Partners with deficit balances should make up the balance.All of these must take place before the distributions are made to the partners.

Below Are Steps in Which Partnership Distribution Takes Place