Section 5: Profit and Loss Allocations The net profits of the partnership shall be apportioned equally between the partners and the net losses shall be borne equally by them, with each partner receiving fifty percent (50%) of the net profits of the partnership, and fifty percent (50%) of the net losses. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a partner has no credit balance in his income account, losses shall be charged to his capital account.

Interest on Capital Contributions No interest shall be paid on any capital contributions to the partnership, including initial capital contributions made upon execution of this agreement, and subsequent capital contributions made after execution of this agreement.

1. Explain the provisions of General Partnership, Section 5 (Profit and Loss Allocations)
2. Explain the provisions of General Partnership, Section 4 (Interest on Capital Contributions.)