The partnership capital account is an [[Equity accounts]]t 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 of assets

• Profits and losses earned by the business, and allocated to the partners based on the provisions of the partnership agreement

• Distributions to the partners

The ending balance in the account is the undistributed balance to the partners as of the current date.

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 = $65,000 ending balance