Section 46
ActIn forceProvision 46 of 47
Section 46
In settling accounts between the partners after a dissolution of partnership, the following rules shall, subject to any agreement, be observed:
(i)
in paying the debts and liabilities of the firm to persons who are not partners therein;
(ii)
in paying to each partner rateably what is due from the firm to him for advances as distinguished from capital;
(iii)
in paying to each partner rateably what is due from the firm to him in respect of capital; and
(iv)
the ultimate residue, if any, shall be divided among the partners in the proportion in which profits are divisible.