What is the origin of double entry accounting?

Double-entry bookkeeping (also known as double-entry bookkeeping) is the standard system for recording financial transactions in business and other organizations. The evolution of double-entry bookkeeping, from its germination to its near-full-fledged form, took about 300 years (early 13th century to late 15th century). This evolution took place in medieval Italian commercial cities (e.g., Venice, Genoa, etc.).

At that time, commerce and handicrafts in certain cities on the Mediterranean coast developed rapidly, and what Marx called "the first sprouts of capitalist production" appeared. The developed commodity economy, especially the very active commerce (including the sea**) and the money exchange industry in some cities on the Mediterranean coast, is in dire need of important information about economic transactions and business results from the bookkeeping. After a period of gestation, a major breakthrough was finally made in the method of bookkeeping, and the scientific double-entry bookkeeping method was born in Italy.

The double-entry accounting method is that the occurrence of any economic transaction will cause at least two items of assets and liabilities to increase or decrease, and the amount of increase or decrease is equal.

Accordingly, each economic transaction should be reflected in equal amounts and registered in at least two relevant accounts at the same time. This method of registering every economic transaction in two or more accounts that are linked to each other for an equal amount is called double-entry accounting.

Compared with single-entry accounting, the double-entry accounting method has two obvious characteristics: First, all economic transactions must be balanced in accordance with the prescribed accounting subjects and at least two accounts that are interconnected. Double-entry bookkeeping occupies an important position in the accounting method system, because in daily accounting work, from the preparation of accounting vouchers to the registration of account books, double-entry bookkeeping must be used.

Notes:

Debit bookkeeping.

1) Accounting symbols.

Debit and credit are used as accounting symbols.

2) Account structure.

Under the debit accounting method, the structure of all accounts is that the left side is the debit side and the right side is the credit side, but the debit side and the credit side reflect the increase or decrease nature of the change in the number of accounting elements is not fixed. The content registered by the lender varies depending on the nature of the account, and the structure of each type of account is explained below.

Double-entry bookkeeping originated in Venice and was founded by Pacioli, the father of accounting. Venice is a famous water city, originated from the rich to avoid bandits robbing and fleeing the city built, the refugees also eat, drink and sleep, need people to drive a boat to buy, so the owner of the ship on the rich entrusted to buy rice, flour, oil, etc., the rich first pay, and tell the owner what to buy, the owner has to keep the account, and then deliver the goods to the rich after buying back, the owner has to explain the ins and outs of the money, no matter who the person is, the ins and outs of the funds are clear, who is the founder of the double-entry bookkeeping, luck befell Pacioli.

1. Double-entry bookkeeping reflects the whole picture of economic business more completely than single-entry bookkeeping. It is possible to understand the ins and outs of each economic business and to have a comprehensive understanding of the process and results of economic activities. Double-entry bookkeeping can record all economic operations in an interrelated and comprehensive manner into the relevant accounts, so that the accounts can comprehensively and systematically account for and supervise the process and results of economic activities, and can provide the data and information required for operation and management.

2. The results of the account records can be balanced on a trial basis to check the accuracy of the account records. Double-entry bookkeeping is to register each economic transaction with the same amount in the account of the two aspects of the origin and the origin, and a numerical correspondence balance is formed between the accounts of the two aspects, and if the bookkeeping is wrong, this balance will be broken, so the correctness of the account records can be checked by the method of trial balance.

3. The double-entry accounting method better reflects the internal law of capital movement, and can comprehensively and systematically reflect the ins and outs of capital increases and decreases and business results.

The concept of double-entry accounting is as follows:The double-entry accounting method is based on the balance between assets and equity as the basis of bookkeeping, and for each economic transaction, it is necessary to register in two or more interrelated accounts with the same amount, and systematically reflect the results of changes in the movement of funds.

Double-entry bookkeeping is a specialized method of registering every economic transaction through the interconnection of two or more related accounts. In China, there have been three kinds of double-entry bookkeeping: loan bookkeeping, increase and decrease bookkeeping, and receipt and payment bookkeeping, but only one type of credit and debit bookkeeping method is used.

The main characteristics of double-entry bookkeeping are: each economic transaction is recorded in two or more interrelated accounts with an equal amount, there is an objective correspondence between the accounts, and the results of the account records can be calculated and balanced. It is a relatively scientific bookkeeping method, which can better reflect the internal law of capital movement, comprehensively and systematically reflect the ins and outs of the increase and decrease of funds and the results of operation, and help to check the account processing and ensure the correctness of the results of account books.

Double-entry accounting method refers to the accounting method that records the same amount of each economic transaction in two or more interrelated accounts, and comprehensively and systematically reflects the increase or decrease of accounting elements.

As one of the four ancient civilizations, China's earliest commercial activities appeared much earlier than Italy's, and double-entry bookkeeping, as a necessary means of management of commercial activities, escorted industrial and commercial activities. The double-entry accounting method is based on the balance between assets and equity as the basis of bookkeeping, and for each economic transaction, it is necessary to register in two or more interrelated accounts with the same amount, and systematically reflect the results of changes in the movement of funds. The theoretical basis for double-entry bookkeeping is the basic equation of accounting.

Double-entry bookkeeping can be divided into credit and debit bookkeeping, increase and decrease bookkeeping and receipt and payment accounting according to the different accounting symbols, bookkeeping rules and trial balance methods. Now China is using the loan accounting method: the loan accounting method:

It is a double-entry accounting method that uses "debit" and "credit" as accounting symbols to record economic transactions. The credit and debit accounting method is a type of double-entry accounting, which is usually called the full term of debit and debit accounting. It is a double-entry accounting method based on the theory of "assets = liabilities + owners' equity", with "debit" and "credit" as the accounting symbols, and "there must be credit, and the loans must be equal".

The credit accounting method uses the words "debit" and "credit" as accounting symbols, which is not a "pure" and "abstract" accounting symbol, but a scientific accounting symbol with profound economic connotation.

Double-entry accounting is a method of registering each economic transaction in two or more interrelated accounts at the same time for an equal amount. For example, if an enterprise purchases fixed assets with a bank deposit of 200,000 yuan, and adopts the double-entry accounting method, on the one hand, it needs to register the bank deposit account in the bank deposit account to reduce the bank deposit by 20,000 yuan; On the other hand, it is necessary to register an increase of 200,000 yuan in fixed assets at the same time with the same amount.

With double-entry accounting, since each economic transaction is registered in two or more accounts for equal amounts, a balance is automatically created between the accounts. Double-entry bookkeeping can not only comprehensively and clearly reflect the content of economic operations, but also understand the ins and outs of economic operations through the observation of the increase and decrease of specific items of each accounting element, and at the same time, it is also convenient to use the principle of trial balance to check the correctness of account records.

At present, the bookkeeping methods adopted by various enterprises and institutions in China all belong to the double-entry bookkeeping method. Double-entry accounting methods include debit accounting, increase and decrease accounting, and receipt and payment accounting. Among them, one of the bookkeeping methods commonly used by countries around the world is the credit and debit accounting method.

China's "Accounting Standards for Business Enterprises" also stipulates that all enterprises shall adopt the double-entry accounting method for loans.