The Genesis of Double Entry Bookkeeping

Alan Sangster

doi:10.2308/accr-51115

The Genesis of Double Entry Bookkeeping

Alan Sangster^*

^*Corresponding author for this work

Accountancy & Finance, Accountancy

Griffith University Queensland

Research output: Contribution to journal › Article › peer-review

81 Citations (Scopus)

Abstract

The emergence of double entry bookkeeping marked the shift in bookkeeping from a mechanical task to a skilled craft, and represented the beginnings of the accounting profession. This study seeks to identify what caused this significant change in bookkeeping practice. I do so by adopting a new accounting history perspective to investigate the circumstances surrounding the emergence of double entry in early 13th century Italy. Contrary to previous findings, this paper concludes that the most likely form of enterprise where bookkeeping of this form emerged is a bank, most likely in Florence. Accountability of the local bankers in Florence to the Bankers Guild provided a unique external impetus to generate a new form of bookkeeping. This new bookkeeping format provided a clear and unambiguous picture of the accounts of all debtors and creditors, along with the means to check that the entries between them were complete and accurate.

Original language	English
Pages (from-to)	299-315
Number of pages	17
Journal	Accounting review
Volume	91
Issue number	1
Early online date	31 Mar 2015
DOIs	https://doi.org/10.2308/accr-51115
Publication status	Published - Jan 2016

Bibliographical note

The author acknowledges the advice and assistance of Professor John Harry Evans III (former senior editor of The Accounting Review) and the three anonymous reviewers who did much to improve the focus and clarity of this paper. Thanks are also given for the advice offered by Richard Goldthwaite, Richard Macve, Keith Hoskin, Yvette Lazdowski, Paul Miranti, Ken McPhail, Lúcia Lima Rodrigues, Delfina Gomes, Angélica Vasconceles, Giuseppe Galassi, Jean-Guy Degos, Mikhail Kuter, Greg Stoner, Pat McCarthy, Edgard Cornacchione, Reza Monem, Tyge Kummer, Conor O'Leary, Chew Ng, Amr Kotb, and participants at the 2014 AAA Annual Meeting and at various conference and seminar presentations in Australia, Brazil, Italy, and Portugal during 2013 and 2014. In particular, thanks are due to Esteban Hernández-Esteve, without whose encouragement this paper would never have got beyond a germ of an idea in 2011.

Keywords

accountability
banking
book transfer
double entry bookkeeping
dual entry bookkeeping
new accounting history
single entry bookkeeping

Access to Document

10.2308/accr-51115Licence: Unspecified

Alan Sangster
- Business School, Accountancy & Finance, Accountancy - Chair in Accounting History
Person: Academic

Cite this

@article{e2a07a51f35240b99fe24393d3695d95,

title = "The Genesis of Double Entry Bookkeeping",

abstract = "The emergence of double entry bookkeeping marked the shift in bookkeeping from a mechanical task to a skilled craft, and represented the beginnings of the accounting profession. This study seeks to identify what caused this significant change in bookkeeping practice. I do so by adopting a new accounting history perspective to investigate the circumstances surrounding the emergence of double entry in early 13th century Italy. Contrary to previous findings, this paper concludes that the most likely form of enterprise where bookkeeping of this form emerged is a bank, most likely in Florence. Accountability of the local bankers in Florence to the Bankers Guild provided a unique external impetus to generate a new form of bookkeeping. This new bookkeeping format provided a clear and unambiguous picture of the accounts of all debtors and creditors, along with the means to check that the entries between them were complete and accurate.",

keywords = "accountability, banking, book transfer, double entry bookkeeping, dual entry bookkeeping, new accounting history, single entry bookkeeping",

author = "Alan Sangster",

note = "The author acknowledges the advice and assistance of Professor John Harry Evans III (former senior editor of The Accounting Review) and the three anonymous reviewers who did much to improve the focus and clarity of this paper. Thanks are also given for the advice offered by Richard Goldthwaite, Richard Macve, Keith Hoskin, Yvette Lazdowski, Paul Miranti, Ken McPhail, L{\'u}cia Lima Rodrigues, Delfina Gomes, Ang{\'e}lica Vasconceles, Giuseppe Galassi, Jean-Guy Degos, Mikhail Kuter, Greg Stoner, Pat McCarthy, Edgard Cornacchione, Reza Monem, Tyge Kummer, Conor O'Leary, Chew Ng, Amr Kotb, and participants at the 2014 AAA Annual Meeting and at various conference and seminar presentations in Australia, Brazil, Italy, and Portugal during 2013 and 2014. In particular, thanks are due to Esteban Hern{\'a}ndez-Esteve, without whose encouragement this paper would never have got beyond a germ of an idea in 2011.",

year = "2016",

month = jan,

doi = "10.2308/accr-51115",

language = "English",

volume = "91",

pages = "299--315",

journal = "Accounting review",

issn = "0001-4826",

publisher = "AMER ACCOUNTING ASSOC",

number = "1",

}

TY - JOUR

T1 - The Genesis of Double Entry Bookkeeping

AU - Sangster, Alan

N1 - The author acknowledges the advice and assistance of Professor John Harry Evans III (former senior editor of The Accounting Review) and the three anonymous reviewers who did much to improve the focus and clarity of this paper. Thanks are also given for the advice offered by Richard Goldthwaite, Richard Macve, Keith Hoskin, Yvette Lazdowski, Paul Miranti, Ken McPhail, Lúcia Lima Rodrigues, Delfina Gomes, Angélica Vasconceles, Giuseppe Galassi, Jean-Guy Degos, Mikhail Kuter, Greg Stoner, Pat McCarthy, Edgard Cornacchione, Reza Monem, Tyge Kummer, Conor O'Leary, Chew Ng, Amr Kotb, and participants at the 2014 AAA Annual Meeting and at various conference and seminar presentations in Australia, Brazil, Italy, and Portugal during 2013 and 2014. In particular, thanks are due to Esteban Hernández-Esteve, without whose encouragement this paper would never have got beyond a germ of an idea in 2011.

PY - 2016/1

Y1 - 2016/1

N2 - The emergence of double entry bookkeeping marked the shift in bookkeeping from a mechanical task to a skilled craft, and represented the beginnings of the accounting profession. This study seeks to identify what caused this significant change in bookkeeping practice. I do so by adopting a new accounting history perspective to investigate the circumstances surrounding the emergence of double entry in early 13th century Italy. Contrary to previous findings, this paper concludes that the most likely form of enterprise where bookkeeping of this form emerged is a bank, most likely in Florence. Accountability of the local bankers in Florence to the Bankers Guild provided a unique external impetus to generate a new form of bookkeeping. This new bookkeeping format provided a clear and unambiguous picture of the accounts of all debtors and creditors, along with the means to check that the entries between them were complete and accurate.

AB - The emergence of double entry bookkeeping marked the shift in bookkeeping from a mechanical task to a skilled craft, and represented the beginnings of the accounting profession. This study seeks to identify what caused this significant change in bookkeeping practice. I do so by adopting a new accounting history perspective to investigate the circumstances surrounding the emergence of double entry in early 13th century Italy. Contrary to previous findings, this paper concludes that the most likely form of enterprise where bookkeeping of this form emerged is a bank, most likely in Florence. Accountability of the local bankers in Florence to the Bankers Guild provided a unique external impetus to generate a new form of bookkeeping. This new bookkeeping format provided a clear and unambiguous picture of the accounts of all debtors and creditors, along with the means to check that the entries between them were complete and accurate.

KW - accountability

KW - banking

KW - book transfer

KW - double entry bookkeeping

KW - dual entry bookkeeping

KW - new accounting history

KW - single entry bookkeeping

U2 - 10.2308/accr-51115

DO - 10.2308/accr-51115

M3 - Article

SN - 0001-4826

VL - 91

SP - 299

EP - 315

JO - Accounting review

JF - Accounting review

IS - 1

ER -

The Genesis of Double Entry Bookkeeping

Abstract

Bibliographical note

Keywords

Access to Document

Fingerprint

Profiles

Alan Sangster

Cite this