If either partner's capital account has too little money to pay the appropriate share, that partner usually pays the balance from personal funds.
When one of several partners cannot pay the owed share of the money, the other partners pay that partner's share, splitting the remaining balance based on agreed-upon loss-sharing percentages.
If partner A also loaned the business ,000, though, he will receive repayment after the company pays its debts, but before the partners receive the money remaining in their capital accounts.
The partners then sell the company's assets, which can result in a gain or a loss.
In such a case, the rest of the money comes from the capital accounts of each partner.
The percentage of the losses for which a partner is responsible depends on the partnership agreement.
The company would send me a 1099 tax form filled "only" with Col-8 for Cash distribution / Liquidation. These distributions are, at least in part, one form of a return of capital. You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9, in your case they were cash in box 8.
Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock.