Sample Partnership Contract - Free Download | Page 6
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Any losses to be debited to a partner’s income account that exceed the
credit balance of such account shall be debited to that partner’s individual
capital account. If, as result of debiting a partner’s individual capital account
with the excess losses, his or her capital account is depleted, future profits of that
partner shall be credited to his or her capital account until such depletion has been
G. Drawing Accounts. A drawing account, to which withdrawals shall be debited,
shall be maintained on the partnership books on behalf of each partner.
Withdrawals may be subject to such limitations as the partners may from time to
time adopt. Each partner’s drawing account shall be closed to his or her income
account at the close of each fiscal year.
H. Tax Year. The taxable year of the partnership shall commence on ____________
and end on _______________.
I. Partnership Account. All partnership funds shall be deposited in an account in
the partnership name in a bank selected by a majority of the partners. Checks
shall be drawn upon the partnership account only for partnership purposes and
shall be signed by any two partners designated by the partners.
XIII. ACCOUNTING BETWEEN PARTNERS
Each partner shall, on every reasonable request, give to the other partners a
true accounting of all transactions relating to the business of the partnership, and
full information of all letters, accounts, writings, and other things which shall
come to his or her knowledge concerning the business of the partnership.
XIV. ADMISSION OF PARTNERS
Additional partners may be admitted to the partnership on such terms as
may be agreed upon in writing between the partners and such new partners. The
terms so agreed upon shall constitute an amendment to this partnership agreement.
XV. RESTRICTIONS ON TRANSFERS
Except as otherwise provided in this agreement, no partner may sell,
assign, transfer, encumber, or otherwise dispose of any interest in the partnership,
partnership property, or assets of the partnership without the prior written consent
of all other partners.