Tex. Codes » Business Organizations Code · TITLE 4. PARTNERSHIPS · CHAPTER 152. GENERAL PARTNERSHIPS
Texas Codes

Tex. Bus. Orgs. Code § 152.707 (2026)

Settlement Of Accounts

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Sec. 152.707. SETTLEMENT OF ACCOUNTS. (a) Each partner is entitled to a settlement of all partnership accounts on winding up the partnership business.

(b) In settling accounts among the partners, the partnership interest of a withdrawn partner that is redeemed under Section 152.610 is credited with a share of any profits for the period after the partner's withdrawal but is charged with a share of losses for that period only to the extent of profits credited for that period.

(c) The profits and losses that result from the liquidation of the partnership property must be credited and charged to the partners' capital accounts.

(d) The partnership shall make a distribution to a partner in an amount equal to that partner's positive balance in the partner's capital account. Except as provided by Section 152.304(b) or 152.801, a partner shall contribute to the partnership an amount equal to that partner's negative balance in the partner's capital account.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748), Sec. 45, eff. September 1, 2011.

Notes of Decisions
Cited in 1 case, 2017–2017 · leading case: John Black v. James Redmond, 709 F. App'x 766 (5th Cir. 2017).
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John Black v. James Redmond, 709 F. App'x 766 (5th Cir. 2017). “Tex. Bus. Orgs. Code Ann. § 152.707 . Once terminated, the partnership is expected to distribute to each partner the balance of his or her “capital account.”
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