The document outlines how capital and current accounts work for business partners. A capital account tracks each partner's initial capital contribution and any additional contributions over time. A current account tracks partner transactions each year that affect the capital account, such as profits/losses, interest on capital, partner salaries, and drawings. The document provides an example of capital and current accounts for two partners, Skip and Jump, over three years from 2004 to 2006, showing how profits/losses, salaries, interest, and drawings are allocated each year between the partners.