If you longer have any inventory then that would be reflected in your Ending Inventory in Cost of Goods Sold. This should resolve itself in your final income statement and carry to your final net profit or loss.
You would then start your new organization without any inventory.
If the partnership no longer is active then you should close the partnership and the new owner would go forward as a sole proprietorship or LLC.
Note: be sure to file your final Partnership on time as the penalty for not filling a partnership return is expensive. The penalty is $205 for each month or part of a month (for a maximum of 12 months) the failure continues, multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year for which the return is due.
The due date for partnership and multiple-member LLC tax returns, Form 1065, is the 15th day of the third month after the end of the partnership's fiscal year. The due date is March 15 for a December 31 year-end.
Partners are not employees and shouldn't be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partner. For deadlines, see About Form 1065, U.S. Return of Partnership Income.
