In a partnership liquidation,the Gain or Loss from Realization

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In a partnership liquidation, the gain or loss from realization is distributed according to the partners' stated ratios as set out in the partnership agreement. This is because the partners have agreed to share in the profits and losses of the business based on their respective ownership interests. Therefore, the distribution of the gain or loss should reflect the partners' agreed-upon ownership interests. The gain or loss from realization does not flow through Retained Earnings, nor is it the last entry made to the partners' capital accounts.

In a Partnership Liquidation,the Gain or Loss from Realization