Jack and Jill have both been operating businesses as sole traders before agreeing to form a partnership on July 1, 2021.

Using the following information, you are required to:

record the formation of the partnership as general Journal entries

prepare a properly classified Balance Sheet for the new partnership as at July 1, 2021.

Jack Balance Sheet as at June 30, 2021

	$	$	$
Assets
Cash at bank			10,000
Accounts Receivable		20,000
Less allowance for doubtful debts		1,000	19,000
Stock			25,000
Furniture and equipment		100,000
Less accumulated depreciation		20,000	80,000
Total Assets			134,000
Liabilities
Accounts Payable			25,000
Net Assets			109,000
Owners Equity
Capital			109,000

Jill Balance Sheet as at June 30, 2021

	$	$	$
Assets
Accounts Receivable		20,000
Less allowance for doubtful debts		3,000	17,000
Stock			20,000
Motor Vehicles		100,000
Less accumulated depreciation		25,000	75,000
Total Assets			112,000
Liabilities
Bank overdraft		5,000
Accounts Payable		10,000	15,000
Net Assets			97,000
Owners Equity
Capital			97,000

Additional Information:

The partners agreed to the following in regard to Jacks assets and liabilities:

Stock to be valued at 20,000

Furniture &Equipment to be valued at 90,000

Accounts Receivable to be valued at 18,000

All other assets and liabilities are to be introduced at their book values.

The partners agreed to the following in regard to Jills assets and liabilities:

Accounts Receivable to be valued at 15,000

Stock to be valued at 18,000.

All other assets and liabilities to be introduced at their book values.