The Emergence of Double Entry Bookkeeping and its Relevance to Modern Society
Central Asian Journal of Innovations on Tourism Management and Finance, 4 (5):
96-101 (May 2023)Abstract
The purpose of this paper is to ascertain the factors that contributed to the emergence and development of double entry bookkeeping system, who introduce the double entry bookkeeping system, how its application has impacted the accounting profession, we also looked at its benefit to the society and how its application improved the accounting system. The paper is also aimed at showing the relevance of the double entry bookkeeping system to this modern day society. In order to do this, we considered scholarly works done by other scholars and also considered the activities of firms’ accounting departments. This paper will also discuss the differences between the complex capitalistic structure we operate in today with that of the days of Luca Pacioli- the inventor of the double entry bookkeeping system, who lived during the Renaissance when this system became pervasive. The paper further looks at how the double entry bookkeeping system invented by Luca Pacioli still has relevance in this modern world of accounting. According to Michael Chatfield, ‘’the emergence of the Double Entry Bookkeeping in a study of their evolution suggests that accounting processes are reactive, that they develop mainly in response to business needs at any given time, and that their growth is relative to economic progress. In general, the higher the level of civilization, the more elaborate the bookkeeping methods”.