Raj and Timoci, who were operating sole-trading businesses, decided to amalgamate their businesses on 1 January, 2020 to form a partnership and trade as Raj and Timoci Traders. At the date of the amalgamation the financial position of their businesses were as follow:

Balance Sheet of Raj Enterprises as at 31 December, 2019

Assets	$	$				Equities	$
Cash at bank		7 500				Accounts payable	4 800
Accounts receivable	6 500									Accrued expenses	100
Less provision for doubtful debts	100	6 400			Mortgage	13 000
Inventories		10 000
Building	85 000									Capital- Raj	81 000
Less accumulated depreciation	10 000	75 000
			$ 98 900					$ 98 900
Balance Sheet of Timoci Enterprises as at 31 December, 2019
Assets		$		$					Equities		$
Accounts receivable				8 900			Bank overdraft		3 000
Inventories				7 000			Accounts payable		8 400
Accrued revenue				500
Furniture		14 000										Capital -Timoci		85 000
Less accumulated depreciation		4 000		10 000
Land				70 000
				$ 96 400				$ 96 400

For the purpose of amalgamation, the following fair values were agreed upon in the books of Raj and Timoci Enterprises. The remaining assets and liabilities are to be taken over at book value.

	Raj Enterprises	Timoci Enterprises
	($)	($)
Accounts receivable	6 300	8 600
Inventories	11 000	6 500
Land	-	80 000
Building	73 000	-
Agreed value of the business	87 000	95 000

Required:

Prepare the journal entries to record the formation of the partnership business