Common use of Income Account Clause in Contracts

Income Account. An individual income account will be maintained in the records of the Partnership for each of the Partners, to which account there shall be credited or debited the respective interest and share of such Partner in the Net Profit or the Net Loss of the Partnership and to which account there shall be debited all distributions of Net Profit to such Partner. To the extent that the Partnership has funds on hand which funds are not, in the opinion of the Managing Partner, needed to satisfy existing or foreseeable obligations of the Partnership, the Managing Partner may distribute such funds to the Partners according to the Partnership Interest of each Partner.