LO4. How is the withdrawal of a partner accounted for? a) Baxter retires from the partnership and will receive cash for the $30,000 book value of her capital. Write the journal entry for Baxter's withdrawal from the business. In MyLab Accounting, complete Try It! and S-F:12-9 through S-F:12-10. LO5. How is the liquidation of a partnership accounted for? a) List the steps to follow in liquating a partnership: i) ii) iii) b) After selling the non-cash assets and paying off liabilities, the partners have the following capital balances: Journalize the final distribution of cash to the partners