If all partners are included in the first installment of an installment liquidation,then in future installments

Question

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If all partners are included in the first installment of an installment liquidation, then in future installments, cash will be distributed according to the residual profit and loss sharing ratios. This is because the initial distribution would have already accounted for the initial entitlements of each partner based on their profit and loss sharing ratios. Therefore, any future distribution of cash should follow these ratios as well to ensure equitable distribution among the partners. Option B is incorrect because it assumes that there are non-cash assets remaining, which may not always be the case. Option C is also not relevant in this scenario, as vulnerability rankings are typically only used in the event of insolvency or liquidation that is not structured as an installment liquidation. Option D is also not necessary as the distribution plan would have been communicated during the initial installment distribution.

If All Partners Are Included in the First Installment of an Installment