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. EXERCISE Following the rules given, change the books of David Henry to double entry using the old ledger. Show necessary journal entry and indicate what new accounts must be opened. CHANGING PARTNERSHIP BOOKS TO DOUBLE ENTRY =12.= We will suppose that the ledger illustrated in the following model set (pages 23-27) represents the business of Benton, Douglas, and Kemp, and that the books have been kept by single entry. They wish to adopt the double entry method and call you in to make the necessary changes in their books. Your first step is to make a statement of the ledger accounts, including all except the capital accounts of the partners. This statement gives you the following information: Personal Accounts, _Debit Balances_ $189.25 Personal Accounts, _Credit Balances_ 2,828.50 Cash in Bank 7,313.73 You also balance the cash book and compare the balance with the cash in drawer, and find that the amount shown, $21.60, is correct. In the meantime an inventory is being taken. When completed, the results shown are: Merchandise $2,114.50 Furniture and Fixtures 2,000.00 The next step is to make a statement of assets and liabilities for the purpose of finding the present worth of the business. STATEMENT OF ASSETS AND LIABILITIES _Assets_ Cash in Bank (Ledger) $7,313.73 Cash in Office (Cash Book) 21.60 Personal Accounts (Ledger) 189.25 Merchandise (Inventory) 2,114.50 Furniture and Fixtures (Inventory) 2,000.00 --------- Total Assets $11,639.08 _Liabilities_ Personal Accounts (Ledger) 2,828.50 ---------- Present Worth 8,810.58 The capital accounts of the partners show the original investment to have been $9,000.00, which is more than the present worth. Deducting the latter from the former will give the net loss. Investment $9,000.00 Present Worth 8,810.58 --------- Net Loss 189.42