In settling accounts between the international partners after the dissolution of an international partnership, the following rules shall subject to any agreement be observed —
(a) losses, including losses and deficiencies of capital, shall be paid first out of profits, next out of capital, and lastly if necessary, by the international partners individually in the proportion in which they were entitled to share profits; and
(b) the assets of the international partnership including the sum, if any, contributed by the international partners to make up losses or deficiencies of capital shall be applied in the following manner and order —
(i) in paying the debts and liabilities of the international partnership to persons who are not international partners in the international partners;
(ii) in paying to each international partner what is due from the international partnership to him or her for advances as distinguished from capital; and
(iii) in paying to each international partner what is due from the international partnership to him or her in respect of capital; and
(c) the ultimate residue, if any, shall be divided among the international partners in the proportion in which profits are divisible.