The partnership agreement provides that profits and losses are to be shared equally, but contains no reference to the payment of interest on withdrawals, or allowance of interest on personal credits. The statement of assets and liabilities is entered in the journal and accounts opened in the ledger with _merchandise inventory_ and _furniture and fixtures_—the only items not already represented by ledger accounts. To complete the change and balance the ledger the following single entry is made in the journal and posted to partners' personal accounts. James Benton Dr. $63.14 Horace Douglas Dr. 63.14 Henry Kemp Dr. 63.14 A trial balance will now show the ledger to be in balance. You have followed the routine necessary to change the books of a partnership from single to double entry under the conditions given. A general rule to be followed is to ascertain the present worth, make the partnership adjustment as in double entry, and post as in changing books of a single proprietorship. 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. [Illustration: Single Entry Partnership Ledger ] [Illustration: Single Entry Partnership Ledger ] [Illustration: Single Entry Partnership Ledger ] [Illustration: Single Entry Partnership Ledger ] [Illustration: