In which order the assets of the firm, including any sum contributed by the partners to make up deficiencies of capital applied:
a) Residue, if any, shall be divided among the partners in their profit-sharing ratio.
b) Paying to each partner proportionately what is due to him on account of capital
c) The debts of the firm to the third parties
d) Partner’s loan

cdba

The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order:
(i) In paying the debts of the firm to the third parties;
(ii) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner’ loan);
(iii) In paying to each partner proportionately what is due to him on account of capital; and
(iv) The residue, if any, shall be divided among the partners in their profit sharing ratio.