CHANGING TO DOUBLE ENTRY
11. How to change the method of keeping a set of books from single to double entry is an important question to the bookkeeper, for he may be called upon any time to do the work. When once understood, the change involves only very simple entries. The routine may be briefly described as follows:
First. Prepare a statement of assets and liabilities.
Second. Enter this statement in the journal and post to the ledger, debiting all accounts which represent assets and crediting all accounts which represent liabilities. Credit proprietor's account with the difference, which is the present worth.
If a new ledger is to be opened, new accounts will be opened for each form of asset or liability represented in the entry.
If the old ledger is to be used new accounts are to be opened with assets and liabilities not already represented by accounts in the ledger, and the net gain only will be credited to the proprietor's account. Check personal accounts, but do not post.
Third. Take a trial balance to see if the ledger is in balance, as it should be after posting these entries.