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Business combination: New Partnership of Patrick Company and Samuelson Company

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The post-closing trial balances of two proprietorships on January 1, 2008, are presented

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 Patrick will invest an additional $5,000 in cash, and Samuelson will invest an additional $19,000 in cash.

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Solution Summary

The solution presents the entries for the combination of two sole proprietorships into a new partnership called Passa Company plus a calcuation of capital for each new partner.

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Dear student,
Solution to your problem is provided in a separate excel file attached herewith in the appropriate forms as detailed below.

1 Opening entries in two parts for taking individual business of Patrick ...

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