Gains on the sale of assets in a liquidation are divided among partners according to the stated ratios.

Question

Quizplus · Accepted Answer

When a partnership undergoes liquidation and sells off its assets, any gains from the sale are distributed among the partners in the ratio specified in the partnership agreement. This is done to ensure that each partner receives a fair share of the profits from the sale, based on their contribution to the partnership. Therefore, the statement is true.

Gains on the Sale of Assets in a Liquidation Are