TWO SOLE PROPRIETORSHIPS COMBINED TO FORM A PARTNERSHIP
NEW SET OF BOOKS OPENED FOR THE PARTNERSHIP
Assume that Carol Cario and Norie Cruz, who are both operating their own boutiques, decid
to combine their resources and form a partnership to be known as Carie Boutique. The trial balanc
of the two businesses as of January are as follows:
Carol Cario
Trial Balance
January
Norie Cruz
Trial Balance
January
Carol and Norie agreed, among other things, on the following adjustments:
The fair market value of the merchandise inventory of Carol Carino is
The equipment owned by Carol Cario has been overdepreciated by
Accrued Utilities Payable for Carol Cario and Norie Cruz are and
respectively.
The merchandise inventory of Norie Cruz is understated by
The prepaid insurance account is to be written off.
The allowance for doubtful accounts is to be adjusted to of accounts receivable.
