Double-entry bookkeeping

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Double-entry bookkeeping

Accounting method that records each transaction as both a credit and a debit in different accounts.

Double-Entry Bookkeeping

A system of accounting where every transaction is recorded as a debit to one account and a credit to another. That is, one who uses a double-entry bookkeeping system records each transaction twice, such that each credit (representing revenue) is recorded as a credit to one's capital account and as a debit on one's bank account. For example, if a company sells a product for $100, it adds $100 to its capital account and subtracts $100 to its bank account. One way of conceptualizing the bank account is from the bank's perspective: the debits are debits because any asset in a bank account represents a liability for the bank; this is why they are subtracted instead of added. However, the data are recorded twice to prevent errors in bookkeeping: the total debits and credits recorded should add to zero.
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Some throwaway lines are presented in this book that are simply wrong, such as the statement that double entry bookkeeping was essential for those operating in the international slave trade (p.
There is a dissonance in Professor Soll's view of the role of double entry bookkeeping, not just because he does not appear to understand what it is or how it works, but because he has failed to engage with the extensive academic arguments on its role.
In other cases, we know that evidence exists but we delay in investigating it for so long that we allow incorrect assumptions to flourish--take the case of Genoa (wrongly) being said to be the first place in which a full system of double entry bookkeeping was maintained.
Last year, I reviewed Ms Gleeson-White's book on the history and influence of double entry bookkeeping (Sangster, 2012).
He was comparing merchants' double entry bookkeeping with the records kept by the Prince's officials concerning his financial affairs.
Double entry bookkeeping and the probative value of accounts
By the time Pacioil wrote the first published description of double entry bookkeeping, the Memoriale was identified as one of the three principal account books of that system.
Given the fact that Pacioli's system of double entry bookkeeping, as described in that same treatise, became the dominant bookkeeping system, it is surprising that the same did not occur with his Merchant's Ricordanze.
Many authors have speculated on what gave rise to the emergence of double entry bookkeeping and have suggested a number of contributory, factors, including population growth, expansion of trade, the acceptance of credit, educational advances in medieval universities, the growth in the use of agents, joint ventures, partnerships, the switch to a monetary economy, and the increased stability of currency in 13th century Venice (e.g.; De Roover [1942], Yamey [1947], De Roover [1956], Williams [1978], Hoskin and Macve [1986], Edwards [1989], Mills [1994], Macve [1996], Arlinghaus [2006], Carmona and Ezzamel [2009], Oldroyd and Dobie [2009], Heeffer [2010]).
(eds.), Luca Pacioli: Exposition of Double Entry Bookkeeping, Venice 1494 (Venice: Albrizzi Editore): 11-33.
(1977), "The Forerunner of Double Entry Bookkeeping: Four-Element Bookkeeping Method in Korea," Journal of Social Sciences and Humanities, No.
Calls for broader thinking on the history of double entry bookkeeping and for more research on possible antecedents in the Islamic state.