EXERCISE
The books of Lancaster, Jenkins, and Stubb have been kept by single entry, but they desire to change to double entry.
The partnership agreement provides that each partner shall share in the profits in proportion to his net investment. Separate accounts are kept with each partner to cover his investment and withdrawals.
The following is a statement of the ledger accounts as they appeared December 31st. The balances of partners' investment accounts are the same as when the last adjustment was made, no additional investments having been made during the present period.
| STATEMENT OF LEDGER | ||||
|---|---|---|---|---|
| Lancaster, | Investment | Credit | Balance | $2,000.00 |
| Jenkins | " | " | " | 1,500.00 |
| Stubb | " | " | " | 1,500.00 |
| Personal | Accounts | " | " | 900.00 |
| " | " | Debit | " | 2,200.00 |
| Lancaster, | Withdrawals | " | " | 325.00 |
| Jenkins | " | " | " | 250.00 |
| Stubb | " | " | " | 175.00 |
| Bank | " | " | " | 2,150.00 |
| Cash in office | 50.00 | |||
An inventory is taken and shows the value of merchandise in stock to be $1,850.00, fixtures $300.00.
First. Transfer debit balances of partners' withdrawal accounts to investment accounts.
Second. Show entries to make the partnership adjustment and to change books to double entry.
Third. Indicate by check (√) what accounts are to be posted, the old ledger being used.
Single Entry Partnership Ledger
Single Entry Partnership Ledger
Single Entry Partnership Ledger
Single Entry Partnership Ledger
Single Entry Partnership Ledger