Accounting Partnership Agreement

As a result, the draw account has increased by $US 500 and the partnership`s cash account is reduced by the same account. Where an outgoing partner deducts more than the amount from its capital account, the transaction reduces the capital accounts of the remaining partners. The excess of the amount withdrawn over the equity of the outgoing partner in the partnership shall be distributed among the remaining partners on the basis indicated in the social contract. 000 | |- | Cash | | 30,000 |} The net income or loss is allocated to the partners in accordance with the partnership agreement. In the absence of an agreement between the partners, profits and losses must be distributed equally, regardless of the relationship between the partners` investments. If the social contract defines the distribution of profits, losses must be shared on the same basis as profits. .

This entry was posted in Uncategorized. Bookmark the permalink.