The first entry to liquidate a partnership would probably include:

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To liquidate a partnership, the first step is to sell off the individual assets and convert them into cash. The entry for this would involve a debit to Cash and a credit to each individual asset sold. However, there may be some assets that are sold at a loss or gain, which would be recorded through a debit or credit to Loss or Gain from Realization. Therefore, the entry would be a debit to Cash, a debit or credit to Loss or Gain from Realization (depending on the sale price of the asset), and a credit to each individual asset sold.

The First Entry to Liquidate a Partnership Would Probably Include