Business & farm

I believe you need the net income Profit and Loss statement. It's your Gross income MINUS all the deduction, expenses, and tax = net income/loss (NI or NL). Then your NI or NL is added to your equity and that will either increase (NI) or decrease (NL) your Partner capital. 

 

And then you have your distribution, which should be what you said, a decrease to the partner capital.