Sample Partnership Contract - Free Download | Page 5
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XI. PROFITS AND LOSSES
A. Sharing Of Profits. The partners shall be entitled to the net profits arising from
the operation of the partnership business that remain after the payment of the
expenses of conducting the business of the partnership. Each partner shall be
entitled to the distributive share of the profits specified below.
First Party - ___________________.
Second Party - ___________________.
XII. BOOKS, RECORDS, & ACCOUNTS
A. Books Of Account. Books of account shall be kept by the partners, and proper
entries made therein of all the sale, purchases, receipts, payments, engagements,
transactions, and property of the partnership.
B. Method Of Accounting. All accounts of the partnership shall be kept on the
_________________ basis. All matters of accounting for which there is no
provision in this agreement are to be governed by generally accepted methods of
accounting.
C. Place Where Books And Records To Be Kept. The partnership books of
account, and all securities, papers, and writings of the partnership shall be kept at
the principal office of the partnership, at the location indicated above, and, as
necessary, in such other places where business is carried on, or in such other place
as may be agreed on by the partners. Each partner shall have free access at all
times to examine and copy the books, papers, and other writings of the
partnership.
D. Auditing Of Accounts. The books of account shall be audited annually at the
expense of the partners by a certified public accountant selected by the partners.
E. Capital Accounts. A capital account shall be maintained on the partnership
books on behalf of each partner. Such account shall be credited with that
partner’s contributions to the capital of the partnership and shall be debited and
credited in the manner prescribed in subsection (I) of this article.
F. Income Accounts. An income account shall be maintained on the partnership
books on behalf of each partner. Such account shall be closed to the capital
account of the partner at the close of the fiscal year.
As soon as practicable after the close of each fiscal year, and at such other
times as the partners may decide, the income account of each partner shall be
credited with that partner’s distributive share of profits with his or her share of
the losses.
