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ADVANCED ACCOUNTS CHAPTER I BOOK-KEEPING UP TO THE TRIAL BALANCE Definition of Book-keeping. — Book-keeping is the science and art of correctly recording in books of account all those business transactions that result in the transfer of money or money's worth. It may also be denned as the art of recording mercantile trans actions in a regular and systematic manner ; the art of keeping accounts in such a manner that a man may know the true state of his business and property by an inspection of his books. Objects of Book-keeping. — The objects of book-keeping are twofold : — (1) To have a permanent record of all mercantile transactions. (2) To show the effect of each transaction and the combined effect of all the transactions upon the financial position of the party concerned. History of Book-keeping. — The art in a rude state has existed from very ancient times, but Venice is considered to have been the birthplace of the modern system. In 1494 or 1495, Lucas Pacioli, a Franciscan monk, otherwise known as Lucas de Burgo and Lucas di Borgo, published in Italian the first known treatise on book-keeping. It was entitled De Computis et Scripturis, and advocated the use of the Memorial (Waste or Memorandum Book), Journal, and Quaderno (Ledger). Venice, Genoa, and other towns of Italy were the first to practise book-keeping by double entry, which is, therefore, often called the Italian method. Pacioli's work was translated into English by Hugh Oldcastle, and published in London in 1543. James Pcele wrote in 1553, a work on How to keep a Perfect Accompte of Debitour and Creditour. In 1795 Edward Jones published his English System of Book-keeping, which introduced two columns into the Journal instead of one as formerly, the Trial Balance, and the Bought and Sold Day Books as we now know them. Modern additions are the Double Account System, the accounts of Joint Stock Companies, the Tabular System, and Ledger balancing by means of aggregate accounts, or, as it is called, " Self- balancing " Ledgers. i— (1405) 1 Generated on 2016-01-02 14:00 GMT / http://hdl.handle.net/2027/wu.89097473888 Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
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Page 1 advanced accounts
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ADVANCED ACCOUNTS
CHAPTER I
BOOK-KEEPING UP TO THE TRIAL BALANCE
Definition of Book-keeping. —Book-keeping is the science andart of correctly recording in books of account all those businesstransactions that result in the transfer of money or money's worth.It may also be denned as the art of recording mercantile transactions in a regular and systematic manner ; the art of keepingaccounts in such a manner that a man may know the true stateof his business and property by an inspection of his books.
Objects of Book-keeping. —The objects of book-keeping aretwofold :—
(1) To have a permanent record of all mercantile transactions.
(2) To show the effect of each transaction and the combinedeffect of all the transactions upon the financial position of the
party concerned.History of Book-keeping. —The art in a rude state has existed
from very ancient times, but Venice is considered to have been
the birthplace of the modern system. In 1494 or 1495, LucasPacioli, a Franciscan monk, otherwise known as Lucas de Burgoand Lucas di Borgo, published in Italian the first known treatiseon book-keeping. It was entitled De Computis et Scripturis, andadvocated the use of the Memorial (Waste or Memorandum Book),Journal, and Quaderno (Ledger). Venice, Genoa, and other townsof Italy were the first to practise book-keeping by double entry,which is, therefore, often called the Italian method. Pacioli'swork was translated into English by Hugh Oldcastle, and publishedin London in 1543. James Pcele wrote in 1553, a work on How to
keep a Perfect Accompte of Debitour and Creditour. In 1795
Edward Jones published his English System of Book-keeping,which introduced two columns into the Journal instead of one as
formerly, the Trial Balance, and the Bought and Sold Day Booksas we now know them. Modern additions are the Double AccountSystem, the accounts of Joint Stock Companies, the TabularSystem, and Ledger balancing by means of aggregate accounts,or, as it is called, " Self- balancing
"Ledgers.
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