Upon liquidation of a partnership, the cash received from the sale of assets is first used to return the capital balances of the partners. The remaining cash is then used to pay off the liabilities of the business.

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Upon liquidation of a partnership, the cash received from the sale of assets is first used to pay off the liabilities of the business. Any remaining cash is then distributed to the partners according to their capital balances.

Upon Liquidation of a Partnership, the Cash Received from the Sale