“Jim,” I said, “you must speak right out. I've got all that I can carry.”
“Well,” he said—“I know it was a liberty—I made it out you were no business man, only a stone-broke painter; that half the time you didn't know anything anyway, particularly money and accounts. I said you never could be got to understand whose was whose. I had to say that because of some entries in the books——”
“For God's sake,” I cried, “put me out of this agony! What did you accuse me of?”
“Accuse you of?” repeated Jim. “Of what I'm telling you. And there being no deed of partnership, I made out you were only a kind of clerk that I called a partner just to give you taffy; and so I got you ranked a creditor on the estate for your wages and the money you had lent. And——”
I believe I reeled. “A creditor!” I roared; “a creditor! I'm not in the bankruptcy at all?”
“No,” said Jim. “I know it was a liberty——”
“Oh damn your liberty! read that,” I cried, dashing the letter before him on the table, “and call in your wife, and be done with eating this truck”—as I spoke, I slung the cold mutton in the empty grate—“and let's all go and have a champagne supper. I've dined—I'm sure I don't remember what I had; I'd dine again ten scores of times upon a night like this. Read it, you blaying ass! . . . ”
“What does it all mean?” cried Jim. “It means we have a champagne supper to-night, and all go to Napa Valley or to Monterey to-morrow . . .
'Make it out' seems to have a special meaning different from 'make out'.
OED has this: link2
to make out, in make, v.¹ transitive. To succeed in accomplishing; to effect, achieve. Now regional exc. colloquial in to make it out: to make shift, get along. See also…
This makes me think 'make it out' has a special meaning but I can't find this in the dictionaries.
There is only one meaning that could work in this context: link3
make out something phrasal verb with make verb UK /meɪk/ US /meɪk/ made | made informal
to say, usually falsely, that something is true: [ + to infinitive ] He made himself out to be a millionaire. [ + to be ] The British weather is not always as bad as it is made out to >be. [ + (that) ] He made out (that) he had been living in Paris all year.
However, this has the pattern 'make out something' and not 'make it out'. Maybe there is an obsolete meaning as well. What does 'make it out' mean in this context?