_Fourth._ Make a statement of assets and liabilities.
_Fifth_. Has there been a gain or a loss, and how does it affect the account of the proprietor?
=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.
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: