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in this presentation we will have a liquidation of a partnership and well have a liquidation where one partner will end up with a negative capital account in the process of the liquidation and they wont be paying the partnership for that negative capital account like for more accounting information and accounting courses visit our website at accounting instruction dot info we would hope and therefore were gonna have to allocate that that negative capital account to the other two partners bringing down their capital accounts in the liquidation process so were going to start here with doing this with a worksheet and then well do the same thing with a trial balance and journal entries so first things were going to have the ratio of three to one is going to be our split between our three partners case E and M so to do this for remember we just take the three plus the two plus the one is six and then we just take the three divided by the total of six 50% for K our first partner and th