After all partnership assets were converted into cash and all available cash distributed to creditors, the ledger of the Daniel, Eric, and Fred partnership showed the following balances:

The percentages indicated are residual profit and loss sharing ratios. Personal assets and liabilities of the partners are as follows:

The partnership creditors proceed against Fred for recovery of their claims, and the partners settle their claims against each other in accordance with UPA.

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Debit Credit Accounts payable Daniel capital (40%) Eric capital (30%) Fred capital (30%) $20,000 10,000 $90.000 $90.000 $90,000