# Partnership & Capital Account

**URL:** <https://forum.manager.io/t/partnership-capital-account/9145>\
**Category:** Uncategorized\
**Created:** [April 12, 2017, 9:58am UTC](https://forum.manager.io/t/partnership-capital-account/9145 "2017-04-12T09:58:08Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Abu\_Hasan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/abu_hasan/32/59917_2.png) [@Abu\_Hasan](https://forum.manager.io/u/Abu_Hasan)\
**Post date:** [April 12, 2017, 9:58am UTC](https://forum.manager.io/t/partnership-capital-account/9145/1 "2017-04-12T09:58:08Z")

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I have studied almost all post in this forum related to capital account.  
Now, what I understand is explained below-

**Capital Accounts (Partnership)**

- Partner # 1
- Partner # 2
- Partner # …

**When a Partner draws money-**  
…

**_Spend Money_**  
Credit \> Cash Account  
Debit \> Capital Account \> Partner \> Drawings

**When a Partner invest money-**  
…

**_Receive Money_**  
Debit \> Cash Account  
Credit \> Capital Account \> Partner \> Funds Contributed

**When distributing profit-**  
…

**_Journal Entry_**  
Debit \> Retained Earnings  
Credit \> Capital Account \> Partner \> Share of Profit

**When pay more or less of the profit as appeared in the Amount to Pay column-**  
…

**_Spend Money_**  
Credit \> Cash Account  
Debit \> Capital Account \> Partner \> Drawings

**AM I CORRECT? OR MISSING SOMETHING?**

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**Author:** ![acecombat2](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/acecombat2/32/6638_2.png) [@acecombat2](https://forum.manager.io/u/acecombat2)\
**Post date:** [April 12, 2017, 10:00am UTC](https://forum.manager.io/t/partnership-capital-account/9145/2 "2017-04-12T10:00:29Z")

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no problem so far in my point of view.

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**Author:** ![acecombat2](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/acecombat2/32/6638_2.png) [@acecombat2](https://forum.manager.io/u/acecombat2)\
**Post date:** [April 12, 2017, 10:01am UTC](https://forum.manager.io/t/partnership-capital-account/9145/3 "2017-04-12T10:01:23Z")

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How about fix salary and borrowings? from partnership to business?

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**Author:** ![Abu\_Hasan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/abu_hasan/32/59917_2.png) [@Abu\_Hasan](https://forum.manager.io/u/Abu_Hasan)\
**Post date:** [April 12, 2017, 10:05am UTC](https://forum.manager.io/t/partnership-capital-account/9145/4 "2017-04-12T10:05:25Z")

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No problem about salary.  
It’s payroll function and I got it. If the partner is salaried, then he is also an employee.

Regarding borrowings, I think it’s better to use the **DRAWINGS** as stated above.

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**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\
**Post date:** [January 18, 2023, 3:27pm UTC](https://forum.manager.io/t/partnership-capital-account/9145/5 "2023-01-18T15:27:48Z")

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