Agenda - Council - 06/11/1985 - Special

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I I I I I I I I I I I I I I I I I I I Partnership business. Any drawings by any Partner in excess of the credit balance in his income account shall constitute an obligation of such Partner to the Partnership, but shall not reduce such Partner's capital account. SECTION 8.5 An individual drawing account shall be maintained for each Partner. As soon as practicable after the end of each fiscal yea, the books shall be balanced, and an operating statement shall be prepared and made available to each Partner, showing the results of operations during the preceding year. Each Partner's share of the partnership profits shall be credited to his individual drawing account. Each Partner shall be entitled to draw against his drawing account such amount as may be fixed from time to time by the Partners. SECTION 8.6 A credit balance in a Partner's drawing account shall constitute a liability of the partnership to that Partner~ but it shall not constitute a part of that Partner's capital account or of his interest in the Partnership capital. A debit balance in a Partner's drawing account, whether occasioned by drawings in excess of his share of Partnership profits or by charging him for a share of Partnership loss, shall constitute an obligation of that Partner to the Partnership, and shall not reduce his capital account or his interest in Partnership capital. Payment of the amount owed to the Partnership shall be made in such manner as the Partners shall determine. No Partner may withdraw any amount in excess of the credits to his drawing account without the consent of all other Partners. ARTICLE IX. Computation of Profits The net profit or net loss of the Partnership shall be determined in accordance with generally accepted and sound accounting practices and principles, on a cash basis method of accounting. -5-