When a partnership is ending, you need to know how to handle any losses. This includes money that the partnership has lost and any reduction in the value of the partnership's assets. You should pay these losses in a specific order.

First, you should use any profits the partnership has made to cover the losses. If there aren't enough profits, you then use the partnership's capital. Capital is the money or property that the partners have put into the business.

If there's still not enough money to cover all the losses after using profits and capital, the partners themselves have to pay. Each partner pays a share of the remaining losses. The amount each partner pays depends on how much of the profits they were supposed to get. For example, if you were supposed to get 25% of the profits, you would pay 25% of these remaining losses.