How to treat personal expense in partnership accounting..
How it show the balance sheet
What is the difference between partner account and partner capital account

If it's a personal expense, then it's like the cash went to the partner and then the partner paid it. If the company is paying it directly, then they're just skipping the step of giving it to the partner first. But it's still a distribution to the partner. (i.e. Drawing account.)

I don't see where there'd be a difference between a "partner account" and a "partner capital account." Their account is their capital account. Are you seeing both listed, or just references to them being called two different things?

Usually a partner capital account is an accumulation of withdrawals and income from prior years plus additional partner capital contributions in current year. The partner account would be only the withdrawals or "personal expenses" for the current year. This partner account would be closed into the partner capital account at the end of each calendar year so to begin each new year with a zero balance.

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Originally Posted by jdbcpapa

Usually a partner capital account is an accumulation of withdrawals and income from prior years plus additional partner capital contributions in current year. The partner account would be only the withdrawals or "personal expenses" for the current year. This partner account would be closed into the partner capital account at the end of each calendar year so to begin each new year with a zero balance.

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Are you outside the U.S. I call that their Drawing account. The term "partner account" means the same as their capital. Or possibly it's regional, but I don't think so cause I work with students online who are all over the country and all the textbooks (which tend to be regional) call it Drawing.