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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The central issue was whether to adopt the internationally accepted double-entry bookkeeping and the financial reporting practices prevailing in the West or to establish new accounting systems, to satisfy the administration needs of the new Socialist economy.
So it was a very unexpected area for me to be considering writing a book on something as unlikely as double-entry bookkeeping and accounting.
1975) "Notes on Double-Entry Bookkeeping and Economic Progress," Journal of European Economic History, IV, 3 (Winter), pp.
Chapter 2, "Counting Becomes Accounting," detects cipher-substitutions in Renaissance finances, as when doge Andrea Gritti distributes coins -- instead of gamebirds -- to Venetian patricians, and Luca Pacioli introduces double-entry bookkeeping.
Having dealt, under the heading of `Family', with rationality, double-entry bookkeeping, kinship ties, demography, and `love, lust and literacy', Goody wisely drops affairs of the heart for a subject even more intricate, which he simplifies by moving the goalposts.
Schweicker was the pioneer of promoting Pacioli's double-entry bookkeeping in Germany and tried to improve the method of the total balance sheet that was used to close the ledger by Pacioli's method.
Furthermore, Rick Elam of the AICPA has stated that "Traditional double-entry bookkeeping is becoming the Latin of business school - interesting to study and useful from a historical perspective, but not in demand in everyday practice.
Bush only adopted double-entry bookkeeping towards the end of his life, and it is possible that he himself often did not know exactly where he stood.
Life in western Europe was marked by increasing urbanization, heightened industrial activity, and the expansion of local commerce and long-distance trade; the craft guilds thrived, thanks to newly created universities, alliances between widely dispersed merchants, central governments, liberalized attitudes toward lending money at interest, the beginning of standardized production, and the growth of double-entry bookkeeping.
For the industrial era, double-entry bookkeeping evolved to record the changes in wealth through the creation of income and funds flow statements.
The technical person may end up acquiescing to the bookkeeper's will in the matter, because concepts such as general ledger, journals and double-entry bookkeeping do not appear to have a significant meaning.
balance of payments accounts, a double-entry bookkeeping system, should equal zero.