 in this presentation we will allocate the net income in accordance with the partnership agreement we will have a situation where we get to the end of the calculation where we will have to allocate negative amounts to the capital accounts and that's something we want to watch out for and be careful of when we set up the partnership agreement in other words we're going to have the income split be based on one just an allocation of salary type allocation two based on a capital investment and then we'll allocate the rest in an even way and when we do that final allocation it's possible that we have um over allocated based on these first two items and don't have enough income to to cover that and then have to allocate basically a negative amount in that final position and so that's what we want to be aware of and that's what we'll look at here we'll do it in a table format and then we'll do the same thing with journal entries here and post that to the trial balance so we will have