Скачать или смотреть The Origins and Core Concepts of Modern Accounting

Who is the father of accounting?

Luca Pacioli the 'Father of Accounting' Luca Pacioli (c. 1447 – 1517) was the first person to publish detailed material on the double-entry system of accounting. He was an Italian mathematician and Franciscan friar who also collaborated with his friend Leonardo da Vinci (who also took maths lessons from Pacioli).
Luca Pacioli was an Italian mathematician and Franciscan friar, and in 1494, he published a book called Summa de Arithmetica, Geometria, Proportioni et Proportionalità. In this book, he described the double-entry bookkeeping system — the method still used in modern accounting.
Because of this contribution, he earned the title "Father of Accounting and Bookkeeping."

What is credit and debit?
In accounting, debit (often abbreviated as "Dr.") generally represents a decrease in liabilities or equity, or an increase in assets or expenses. Credit (often abbreviated as "Cr.") signifies an increase in liabilities or equity, or a decrease in assets or expenses. These terms are used in double-entry accounting, where every transaction affects at least two accounts, with the total debits always equaling the total credits.

Here's a more detailed breakdown:
Debit (Dr.):
• Increases: Assets, Expenses, and Dividends.
• Decreases: Liabilities, Equity (Shareholder's Equity), and Revenue (Income).
•
Credit (Cr.):
• Increases: Liabilities, Equity (Shareholder's Equity), and Revenue (Income).
• Decreases: Assets, Expenses, and Dividends.
•
Example:
• If a company purchases equipment (an asset), the equipment account is debited to record the increase.
• If the company pays a supplier (a liability), the supplier account is credited to record the decrease.
•
Important Note:
• The terms "debit" and "credit" are applied differently depending on the type of account (asset, liability, equity, etc.).
• Understanding the basic rules of debits and credits is crucial for proper accounting practices

Debits and credits in double-entry bookkeeping are entries made in account ledgers to record changes in value resulting from business transactions. A debit entry in an account represents a transfer of value to that account, and a credit entry represents a transfer from the account.[1][2] Each transaction transfers value from credited accounts to debited accounts. For example, a tenant who writes a rent cheque to a landlord would enter a credit for the bank account on which the cheque is drawn, and a debit in a rent expense account. Similarly, the landlord would enter a credit in the rent income account associated with the tenant and a debit for the bank account where the cheque is deposited.
Debits and credits are traditionally distinguished by writing the transfer amounts in separate columns of an account book. This practice simplified the manual calculation of net balances before the introduction of computers; each column was added separately, and then the smaller total was subtracted from the larger. Alternatively, debits and credits can be listed in one column, indicating debits with the suffix "Dr" or writing them plain, and indicating credits with the suffix "Cr" or a minus sign. Debits and credits do not, however, correspond in a fixed way to positive and negative numbers. Instead the correspondence depends on the normal balance convention of the particular account.[


In accounting, Debit (Dr) and Credit (Cr) are two fundamental concepts used in double-entry bookkeeping. Every financial transaction affects at least two accounts — one is debited, and the other is credited.
________________________________________
💳 Debit (Dr)
• Meaning: Entry on the left side of an account.
• Effect:
o Increases assets or expenses.
o Decreases liabilities, equity, or income.
Example:
If a company buys office furniture for cash —
• Furniture (Asset) increases → Debit the Furniture Account.
________________________________________
💼 Credit (Cr)
• Meaning: Entry on the right side of an account.
• Effect:
o Increases liabilities, equity, or income.
o Decreases assets or expenses.
Example:
In the same office furniture case —
• Cash (Asset) decreases → Credit the Cash Account.

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