INCORPORATING A PARTNERSHIP

Partnership Books:

1.Adjust the books of the books of the

partnership (Revaluation of Assets)

2.Close the books of the partnership.

Receivable from X Corporation xx
Contra Asset Accounts xx
Liabilities xx
Assets xxx

3.Record the Receipt of Stocks.

Stocks of X Corporation xx
Receivable from X Corporation xx

4.Record the distribution of stocks to

partners.(according to capital balances)
A Capital xx
B Capital xx
Stocks of X Corporation xx

Books of Corporation:
1.Record the authorized capital stock.
2.Record the subscription of the partners and
other incorporators.