SPECIAL ACCOUNTS AND ENTRIES 189 



full powers in raising of products and so on. Also whether 

 either is to draw a salary and if so, how much. 



3. The amount which each may withdraw for personal 

 use during a year without being charged with interest on 

 such withdrawal. 



4. Whether or not interest is to be credited on the net 

 capital of each partner during the year. 



5. In the case of interest charged on withdrawals or 

 credited on net capital it should be specifically stated that 

 all entries pertaining to interest should pass through Loss 

 and Gain account. That is, if "A" is charged with inter- 

 est on money withdrawn, the offsetting credit should be to 

 Loss and Gain account. Likewise if "A" is credited with 

 interest on net capital the offsetting debit should be to Loss 

 and Gain account. 



6. The conditions under which a partner may reduce or 

 increase his capital otherwise than by the natural decrease 

 or increase arising from loss or gain in business operations. 



7. The sharing of profits, (a) whether to be shared in 

 proportion to investment or otherwise, (b) whether cash 

 in amount equal to the profits of the year must be with- 

 drawn from the business. 



8. In case the family of one of the partners lives in the 

 farm house but the other partner is unmarried, or lives 

 away from the farm house, the articles of copartnership 

 should specify just what charge is to be made to the part- 

 ner occupying the house and using farm products. 



9. If one partner contributes land, buildings and equip- 

 ment without doing any work and the other one supplies 

 all labor, sharing profits in some proportion usually other 

 than half and half, specific arrangement should be made 

 for determining what the laborers should do. For exam- 

 ple, the partner owning the buildings might want the la- 

 borers retained in a slack time to assist in erecting a new 

 building, a new fence or in tilling a field. The partner 



