LAVENTHOL & HORVATH Because of the normal risks of doing business , the majority of partnerships begun in any' Y'car fail within three Years and require dissolution and liquidation . The Ending of a partnership's business is often an Emotional event for the partners . They may have had high expectations and invested a large amount of personal resources and time in the busi - TIMEs . The End of the partnership often is the end of those business dreams. Accountants usually assist in the winding- up and liquidation process and must recognize the legiti - Inlate nights at and any amounts due to the many parties involved in the partnership . its individual partners . creditors , and customers as well as athere doing business with it . The Uniform Partnership Act of 1957 has 71 sections , ] at which deal specifically with the dissolution and winding - up of a partnership . Several sections discuss the specific rights of the partnership's creditors . They have first claim to the partnership's assets. After the creditors are fully satisfied. any remaining afacts and distributed to the part - Ture based on the balances in their capital accounts . This chapter Presents the Concept` that accountants must know if they' after professional services to partnerships undergoing winding - up and liquidation . LEARNING OBJECTIVES When you finish studying this chapter, you should be able to ! LO TE - 1 Understand and explain terms associated with partnership* Iliquid ations . LO TE_ 2 Make calculations related to lump- sum partnership liquidations . LO TE- } Make calculations related to Installment partnership liquidations