The Ledger: The Last Book of Bookkeeping

This week we examine the last book of historical bookkeeping, the Ledger, which presents the position as of some point in time. The first book of bookkeeping, the Day Book (today’s source systems) gives a running list of transactions with customers or vendors. The second book of bookkeeping, the Journal, turns those transactions into journal entries, reflecting through debits and credits the flow of things … Continue reading The Ledger: The Last Book of Bookkeeping

The Journal in Historical Accounting

This week’s episode examines the second book of historical bookkeeping, the Journal. The journal turns business transactions into debits and credits, reflecting the flow of money through the categories of accounting, Assets, Liabilities, Equtiy, which is composed of Revenue and Expeneses, over time. The journal is where accounting rules are applied, determination of when revenue is earned or unearned, claims are valid or should be … Continue reading The Journal in Historical Accounting

The Day Book in Historical Accounting

This week’s episode takes a deeper look at the Day Book, the first book defined in historic Bookkeeping, the original book of record for transactions. The Day Book today is called operational systems, which records transactions chronologically. Historically it was recorded as a narrative, recording who, what, where, when, how much, including currencies, terms, addresses, etc. Our systems today are much less narrative in nature, … Continue reading The Day Book in Historical Accounting

Spread of Bookkeeping

This week’s episode of Conversations with Kip discusses the spread of accounting knowledge throughout Europe, and the commonality of the books defined as part of bookkeeping. The knowledge spread was quite consistent; each textbook discussed three parts to bookkeeping: (1) The Day or Wastebook (2) The Journal (3) The Ledger The next episodes will discuss these in more detail. This is Episode 123 of Conversations with … Continue reading Spread of Bookkeeping