Upon liquidation,if there is a sale of assets at a loss,the loss must be allocated to the partners' capital accounts based on their profit-and-loss-sharing ratio.

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In a partnership, losses and profits are distributed among partners based on their profit-and-loss-sharing ratio. Thus, in the event of liquidation, if the assets are sold at a loss, the loss must also be allocated among partners based on their profit-and-loss-sharing ratio. This ensures that each partner bears the loss in proportion to their share in the partnership. Therefore, the statement is true.

Upon Liquidation,if There Is a Sale of Assets at a Loss,the