After journalizing transactions, and later posting it to its ledger accounts, a worksheet is made to detect errors in computation. Such is the case when the bookkeeper forgets to maintain a double entry in all journalizing or posting, the total amount of the accounts would not be equal to zero.
At 04:10 PM 6/27/2002 -0400, you wrote: >Double entry accounting recognizes that every transaction must affect at >least two different accounts. It is a mathematical consequence of the more >primal accounting identity assets=liabilities+owners' equity, or >equivalently investment=claims against investments. One of its more >attractive qualities (at least to accountants) is that it is easy to audit >and track errors. I have never heard of single entry accounting, so I don't >completely know how to answer the question as it is posed. > >As an aside, I have read that the use of debits and credits in the double >entry system was a response to the teaching of the Roman Catholic Church in >medieval times that negative numbers were instruments of the devil. With >debits and credits, a negative number is never used in double entry >accounting. (the double entry system was invented by a 14th century Italien >monk and mathematician). > >At 01:13 PM 6/27/2002 -0400, you wrote: > >What exactly is the advantage of double-entry accounting over > >single-entry accounting? > >-- > > Prof. Bryan Caplan > > Department of Economics George Mason University > > http://www.bcaplan.com [EMAIL PROTECTED] > > > > "He wrote a letter, but did not post it because he felt that no one > > would have understood what he wanted to say, and besides it was not > > necessary that anyone but himself should understand it." > > Leo Tolstoy, *The Cossacks* > > > >~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ >Kevin D. Sachs, Ph.D. >Assistant Professor phone: 513.556.7198 >University of Cincinnati fax: 513.556.4891 >Department of Accounting/IS email: [EMAIL PROTECTED] >302 Lindner Hall, P.O.Box 210211 >Cincinnati, OH 45221-0211 >~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ > > > >--- >Incoming mail is certified Virus Free. >Checked by AVG anti-virus system (http://www.grisoft.com). >Version: 6.0.295 / Virus Database: 159 - Release Date: 11/1/2001
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