Reviews the book "Managerial Cost Accounting and Analysis," by Clarence B. Nickerson.

This article focuses on the control over the distribution of installments in a liquidating partnership. In the opinion of the author, it would be entirely logical to insist that since the reasons for the capital investments really terminate with the decision to liquidate the firm, balances being maintained for the purpose of covering the possible losses of the contributors, the interest allowance should be eliminated during the liquidating period. In fact, the earlier distributions to those in the stronger position do in a way take the place of an interest allowance. Similarly, it would appear logical to insist that salaries be allowed to partners during the liquidating period only for services rendered, and that such salaries should be deducted from proceeds and disbursed rather than credited to capital. On the other hand, if a partner's capital balance is such that it will not likely cover his share of liquidation losses, and if services which can be performed by this partner are needed in the liquidation activities, it may be appropriate to ask that he devote as much time as possible, using the salary allowed for such contribution to bolster his capital position.