The distribution of cash, as the final process in winding up the affairs of a partnership, is based on the income-sharing ratio.

Question

Quizplus · Accepted Answer

The distribution of cash in the final process of winding up a partnership is based on the final balances in the partners' capital accounts after all assets have been liquidated and all liabilities have been paid, not on the income-sharing ratio.

The Distribution of Cash, as the Final Process in Winding