The invention of Double Entry Bookkeeping 150322
Channel: Alan Sangster
Date: 2022-04-09

The key to understanding the history of Double Entry Bookkeeping lies in the definitions used. Since its inception as a research field, Accounting History has adopted a definition of bookkeeping that requires evidence of financial reporting and movements in equity before double entry is recognised. This flies in the face of practice, where bookkeeping was a separate task and financial statements were rarely, if ever, produced. By adopting definitions consistent with the activities undertaken, the mystery surrounding the origins of double entry bookkeeping can be set aside. In its place, the causal factors that led to the invention of Double Entry Bookkeeping in 12th century northern Italy can be identified. This video demonstrates that Double Entry Bookkeeping was part of a system of business record keeping devised to meet the needs of the law in the event of a dispute.