Section 44Part 5 — Dissolution of Partnership and Its Consequences
Rule for distribution of assets on final settlement of accounts
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44. In settling accounts between the partners after a dissolution of partnership, the following rules shall, subject to any agreement, be observed —
losses, including losses and deficiencies of capital, shall 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; and
the assets of the firm including the sums, if any, contributed by the partners to make up losses or deficiencies of capital, shall be applied in the following manner and order —
in paying the debts and liabilities of the firm to persons who are not partners therein; partner for advances as distinguished from capital; Section 45 Partnership Act (2025 Revision) Page 20 Revised as at 1st January, 2025 c partner in respect of capital; and the proportion in which profits are divisible.
in paying to each partner rateably what is due from the firm to that
in paying to each partner rateably what is due from the firm to that
the ultimate residue (if any) shall be divided among the partners in