48Rule for distribution of assets on final settlement of accounts

48 Rule for distribution of assets on final settlement of accounts In settling accounts between the partners, after a dissolution of partnership, the following rules are, subject to any agreement, to be observed: (a) losses, including losses and deficiencies of capital, are to be paid first out of profits, next out of capital and lastly, if necessary, by the partners individually in the proportion in which they were entitled to share profits; (b) the assets of the firm, including the sums, if any, contributed by the partners to make up losses or deficiencies of capital, are to be applied in the following manner and order: (i) in paying the debts and liabilities of the firm to persons who are not partners; (ii) in paying to a partner, rateably, what is due from the firm to the partner for advances as distinguished from capital; (iii) in paying to a partner, rateably, what is due from the firm to the partner in respect of capital; (iv) the residue, if any, is to be divided among the partners in the proportion in which profits are divisible. Part 3 Incorporated limited partnerships