Simple English definitions for legal terms
Read a random definition: Worker Adjustment and Retraining Notification Act
Partnership distribution is when a partnership pays one of its partners with money or property from the earnings or as an advance against future earnings. It can also be a payment of the partners' capital in partial or complete liquidation of the partner's interest. It's like when you and your friend start a lemonade stand together, and you split the money you make at the end of the day. That's a partnership distribution!
Definition: Partnership distribution refers to a payment made by a partnership to one of its partners. This payment can be in the form of cash or property and can be made out of the partnership's earnings or as an advance against future earnings. It can also be a payment of the partner's capital in partial or complete liquidation of their interest in the partnership.
Examples:
These examples illustrate how partnership distribution works. In the first example, the partnership made a profit, and the partners received a distribution based on their agreed-upon profit-sharing arrangement. In the second example, the partnership is dissolving, and the partners are receiving a distribution of the remaining assets based on their ownership percentage.