1.
It is that form of organization which is owned and managed by two or more persons who invest and share the
Forming a Partnership
While forming the partnership, the contribution of assets by partners are debited to the partnership assets account; whereas the liabilities of the partnerships are credited to the partnership’s liabilities account, and the net amount of the investments of partners are credited to the partners’ individual capital account.
To record: The
2.
To prepare: The balance sheet on April 1, 2015, on the date of formation of partnership.
3.
To provide: The journal entries to close the Income Summary and expenses and drawing accounts at March 31, 2016.
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