A ‘Capital Account’ is a term used in partnership and in limited liability company business formats. It refers to the individual balances in the equity section of the balance sheet. The basic formula for value is beginning balance plus contributed capital plus earnings from the current accounting period less any withdrawals
A guaranteed payment is a form of withdrawal or assignment of income based on terms in the partnership agreement. In effect, it is a supplement to a salary or acts as a bonus payment to a partner or member.