What is the partnership capitalaccount?

The partnership capital account is an equity account in the accounting records of a

partnership. It contains the following types of transactions:
- Initial and subsequent contributions by partners to the partnership, in the form of either
cash or the market value of other types ofassets
- Profits and losses earned by the business, and allocated to the partners based on the
provisions of the partnership agreement

- Distributions to the partners

 For example,
if Partner Smith originally contributed $50,000 to a partnership, was allocated
$35,000 of its subsequent profits, and has previously received a distribution of
$20,000, the ending balance in his account is $65,000, calculated as:
$50,000 initial contribution + $35,000 profit allocation - $20,000 distribution