A partnership is financed by capital contributed by each of the members. The partnership is not considered a separate legal entity and therefore the partners are jointly and separately liable in their personal capacity for the debts of the business. In addition to the accounting accounts of a sole proprietorship, partnerships have some additional accounts. Each partner has their own capital, their own withdrawals and their own salary account. The current accounts for each partner, the interest on the capital, the appropriation account are accounts that serve to distribute the net profit of the company. The net profit for the year is transferred to the appropriation from which it is distributed according to the partnership agreement. Partners are taxed personally on their share of the company's net profits – the partnership is not taxed. Partnerships do not need to prepare financial statements for independent, external parties