The post-closing trial balances of two proprietorships on January 1, 2017, are presented below.

Yung and Olde decide to form a partnership, Olde Yung Company, with the following agreed upon valuations for non-cash assets.
Yung Company Olde Company
Accounts receivable...............................£17,500..........................£26,000
Allowance for doubtful accounts..................2,500.............................4,000
Inventory.............................................28,000...........................20,000
Equipment...........................................25,000...........................18,000
All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Yung will invest an additional £3,000 in cash, and Olde will invest an additional £16,000 in cash.
Instructions
(a) Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.
(b) Journalize the additional cash investment by each partner.
(c) Prepare a statement of fi nancial position for the partnership on January 1, 2017.

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Yung CompanyOlde Company Dr Cr Cr Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Notes payable (due January 1, 2018) Accounts payable Yung, Capital Olde, Capital £ 14,000 £13,000 26,000 17,500 £ 3,000 £ 4,400 26,500 45,000 18,400 28,000 24,000 22,000 20,000 34,000 12,000 15,000 31,000 23,000 £103,000£103,000 £85,400£85,400