Priority of settlement on dissolution: losses absorb profits then capital, assets pay creditors, advances, capital, and residue. Mode of settlement on dissolution prescribes that losses, including capital deficiencies, are first met from profits, then from capital, and lastly by partners individually in their profit sharing proportions. Firm assets are to be applied in this order: payment of third party debts; repayment of partner advances rateably; repayment of partner capital rateably; and division of any residue among partners in their profit sharing proportions, subject to agreement to the contrary.