Annual financial statement in the general partnership

The general partnership consists of two or more natural persons, which affects the annual financial statements. At the latest at the end of the fiscal year, the partners are entitled to interest on their capital contribution and fees, as far as this is contractually agreed (cf. OR 558). It does not matter whether the business year ends in profit or loss.

Profit shares can naturally only be paid out if the general partnership actually achieves a profit at the end of the year. Unless otherwise agreed, the profit is distributed per capita among the partners.

As far as a partner does not draw profits, interests, and fees, they are credited to his capital share upon approval of the balance sheet, unless one of the other partners objects (OR 559 III).

To ensure clarity, an individual capital account (for the capital contributions) and a private account (for short-term liabilities) are maintained for each partner. Recording the profit with the capital accounts is permitted. In practice, however, recording is often done through the private accounts.

If the general partnership suffers a loss, it is recorded through the capital accounts. If the company subsequently makes a profit, it can be paid out again only once the reduction in capital has been compensated.