Unknown Secrets of Financial Accounting related to Journal Entries ~ (Concept Builder Series)
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In this lecture I was responding to two unknown secrets of Accounts :
1. Why 'Debit' is abbreviated as 'DR.' although its spelling has no 'R'
2. Why in 'Journal Entries' we use 'DR.' at the end but 'TO' at the beginning.
Few historical facts about Debit and Credit:
The first known recorded use of the terms is Venetian Luca Pacioli's 1494 work titled 'Summa de Arithmetica, Geometria, Proportioni et Proportionalita' (In english - All about Arithmetic, Geometry, Proportions and Proportionality). Pacioli devoted one section of his book to documenting and describing the double-entry book keeping system in use during the Renaissance by Venetian merchants, traders and bankers. This system is still the fundamental system in use by modern bookkeepers.
It is sometimes said that, in its original Latin, Pacioli's Summa used the Latin words debere (to owe) and credere (to entrust) to describe the two sides of a closed accounting transaction. When his work was translated, the Latin words debere and credere became the English debit and credit.
Under this theory, the abbreviations Dr (for debit) and Cr (for credit) derive directly from the original Latin.
However, Sherman casts doubt on this idea because Pacioli uses Per (Latin for "by") for the debtor and A (Latin for "to") for the creditor in the Journal entries. The third edition (1633) of Ralph Handson's book Analysis or Resolution of Merchant Accompts and that Handson uses Dr. as an abbreviation for the English word "debtor." and Cr. as an abbreviation for the English word "creditors."
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Видео Unknown Secrets of Financial Accounting related to Journal Entries ~ (Concept Builder Series) канала CA. Naresh Aggarwal
Whatsapp : +91-8800215448
Our Android App Link: https://clp.page.link/GqsK
In this lecture I was responding to two unknown secrets of Accounts :
1. Why 'Debit' is abbreviated as 'DR.' although its spelling has no 'R'
2. Why in 'Journal Entries' we use 'DR.' at the end but 'TO' at the beginning.
Few historical facts about Debit and Credit:
The first known recorded use of the terms is Venetian Luca Pacioli's 1494 work titled 'Summa de Arithmetica, Geometria, Proportioni et Proportionalita' (In english - All about Arithmetic, Geometry, Proportions and Proportionality). Pacioli devoted one section of his book to documenting and describing the double-entry book keeping system in use during the Renaissance by Venetian merchants, traders and bankers. This system is still the fundamental system in use by modern bookkeepers.
It is sometimes said that, in its original Latin, Pacioli's Summa used the Latin words debere (to owe) and credere (to entrust) to describe the two sides of a closed accounting transaction. When his work was translated, the Latin words debere and credere became the English debit and credit.
Under this theory, the abbreviations Dr (for debit) and Cr (for credit) derive directly from the original Latin.
However, Sherman casts doubt on this idea because Pacioli uses Per (Latin for "by") for the debtor and A (Latin for "to") for the creditor in the Journal entries. The third edition (1633) of Ralph Handson's book Analysis or Resolution of Merchant Accompts and that Handson uses Dr. as an abbreviation for the English word "debtor." and Cr. as an abbreviation for the English word "creditors."
🔴 Download Notes / Subscribe Courses : http://www.academyofaccounts.org
🔴 Connect on Facebook :
https://www.facebook.com/ca.naresh.aggarwal
🔴 Connect with Google+: https://plus.google.com/u/0/+CANareshAggarwal
Видео Unknown Secrets of Financial Accounting related to Journal Entries ~ (Concept Builder Series) канала CA. Naresh Aggarwal
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