Partnership Liquidation No Capital Deficiency Illustration: Ace Company is liquidated when its ledger shows the following assets, liabilities, and owners' equity accounts Liabilities and Owners' Equit Notes Payable Accounts Payable R. Arnet, Capital P. Carey, Capital W. Eaton, Capital Assets 5,000 15,000 18,000 35,000 (8,000) $65,000 $15,000 16,000 15,000 17,800 1,200 $65,000 Accounts Receivable Inventory quipment Accum. Depr-Equipment