as a practical matter, on a final return, there are no assets, liabilities, or even equity. ie the balance sheet is all 0's - all assets have been sold, consumed, or distributed (including cash). all its liabilities were paid off or discharged resulting in income. The final distribution of cash would eliminate any remaining members capital.
in the real world, the books are sometimes held open past year-end so any bills coming in late can be paid off and recorded on the final return. but in the end, the balance sheet is still all 0's. while the capital a/c in total is all zero's. the individual Members a/c's might not be 0 for each. this can occur for many reasons. then IRC 704(b) may come into play.
