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According to the Uniform Partnership Act, the preferred method of resolving a partner's deficit balance is typically through the obligation of the partner to contribute additional capital to the partnership. If a partner's capital account shows a deficit, they are generally required to restore this negative balance, often through cash contributions or other agreed-upon means. If the partner is unable or unwilling to make such contributions, the partnership may need to adjust the distribution of profits or losses to reflect the deficit.

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2mo ago

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