Ironically, double-entry bookkeeping also has an extraordinary meaning. Surely many have come across such an expression in literature, in the media, and in life. As a rule, it is associated with some not entirely clean deeds. However, this interpretation applies only to cases where this phrase is used in a figurative sense.
But it also has another meaning, the original one. And he is most often known only to specialists - economists, tax inspectors, lawyers. You can learn about the meanings of the phraseological unit "double-entry bookkeeping", as well as its origin, from the article.
Analysis of the first component
To understand the meaning of the phraseological unit "double-entry bookkeeping", it would be advisable to first consider each of its components separately. Let's start with the main word in the studied phrase. From the noun "accounting". It is presented in the dictionary in three versions.
- Firstly, it is a financial and economic term thatrefers to the theory and practice of accounting, covering information in monetary terms relating to the property and obligations of an entity conducting economic activities. Example: “Next semester, students begin to study accounting in theory as well as practice it.”
- Department available in an institution, in an enterprise that carries out the above accounting and submits financial statements to the appropriate authorities. Example: “Arsentiev still had to get a salary certificate from the accounting department.”
- In colloquial speech, this is a collection of any documents, reports. Example: “I think it’s better to play it safe before the inspectors arrive and look over your accounting again.”
In Russian, this word came from German, where it looks like Buchh alterei. It contains two parts. The first is Buch, which means “book,” and the second is h alter, which means “hold.”
Continuing to consider the meaning of the idiom "double-entry bookkeeping", let's move on to one more part of it.
Other component
The adjective "double" also has several meanings. Among them are the following.
- The one that is doubled when it comes to quantity, size. Example: "Oleg was so hungry that he immediately ordered a double portion of omelet with mushrooms."
- Having in its composition two homogeneous units, parts, objects. Example: "Double-lined jackets are best for hiking safety."
- Implemented not in one, but intwo tricks. Example: "Double reflection has a detrimental effect on the artistic process."
- Repeated twice. Example: "In the dance, the flip was followed by a double jump."
- Double, appearing in two forms. Example: “To avoid double understanding on the part of listeners, it is necessary to express yourself more clearly.”
- Two-faced, insincere, having not only a clear but also a hidden side.
Derived from the numeral two, which, in turn, comes from the Proto-Slavic language, where there is a form dva in the same meaning.
In addition to the one being studied, this lexeme is also part of other set phrases, including double/double:
- citizenship;
- taxation;
- standard;
- agent;
- bottom.
Next, let's move on to a direct consideration of the question of what "double-entry bookkeeping" means in the literal and figurative sense.
Literally
The meaning of the phraseologism "double bookkeeping" in the dictionary has several interpretations. As mentioned above, this expression is used both literally and figuratively.
In the first case, this is the traditional method used in accounting. Its invention is attributed to Luca Pacioli, an Italian mathematician. Its essence lies in the fact that each economic and financial transaction is recorded twice in different registers. It is called "double entry".
Examples:
- "Double-entry bookkeeping invented intime immemorial, is an indispensable tool used by accountants to this day.”
- "If we believe the earliest evidence of the use of DV, which are currently known, it becomes clear that it is impossible to reliably establish the time of its origin."
- The main task of the DV can be defined as the calculation of the financial result.
Next will be considered and the use in a figurative sense.
Figuratively
In it, the expression under study is used in colloquial speech when someone's hypocritical, double-dealing actions are meant.
Examples:
- "He was so happy when he exposed my double-entry bookkeeping, it was as if he had caught me colluding with criminals."
- "Among all of us, there is a very common DV regarding moral issues, and therein lies the great inconsistency of human thinking."
Also in a figurative sense, which has a criminal connotation, the phrase in question is used colloquially to refer to a common method of tax evasion. It lies in the fact that two accounting records are kept, one is fictitious, for verification by the relevant authorities, the other is real.
Examples:
- "Strict fiscal policy may lead to the retreat of entrepreneurs into the shadows, in other words, to force them to double-entry bookkeeping."
- “In order to find out the true state of affairs in the company, the representatives of the investor had a very long time to understandher DV, which did not at all testify in favor of this enterprise.”
For a better understanding of the phrase under consideration, we will give expressions close to it in meaning.
Synonyms
These include:
- fraud;
- tricky;
- scam;
- scam;
- defamation;
- cheating;
- fraud;
- tricks;
- shaher-swindler;
- dishonesty;
- swindle;
- fraud;
- dubious enterprise;
- suspicious transaction;
- mukhlezh;
- gamble;
- shop;
- cheating;
- slyness;
- dexterity;
- false;
- trick;
- quackery;
- dexterity;
- fake;
- dishonest.
Next, we will talk about the emergence of double-entry bookkeeping as a method.
Earliest use
The first use of it, recorded in the history of mankind, is found among the Incas in a quipu. This is a universal and comprehensive way of transmitting and analyzing statistical data. And decisions were made based on it. This system covered their entire empire called Tahuantinsuyu. The principle of double entry was independently invented in Korea during the Goryeo dynasty either in the 11th or 12th century.
Emerging in Europe
The first person known to have usedthis method on the European continent, was a Florentine merchant named Amatino Manucci. There are separate records made in 1299-1300, which he kept in the city of Salon-de-Provence. They concern a division of the company owned by Giovanni Farolfi.
The oldest accounting books surviving in Europe, where the double-entry method was applied, were kept in 1340. These were accounts related to the treasury of the Republic of Genoa. By the end of the 15th century this method was widely used by bankers and merchants in cities such as Florence, Genoa, Venice, Lübeck.
But his systematic presentation is associated with the name of Luca Pacioli, whose years of life are 1445-1517. He was an Italian monk and mathematician and described double entry in his book in 1494. Then this principle in the 16th and 17th centuries. developed in their writings by Gerolamo Cardano, an Italian mathematician, and Simon Stevin, a Flemish mathematician and mechanic.
Application principle
Double entry accounting means that any change in the state of the company's funds is reflected in two accounts and provides an overall balance.
Each of the accounts on which records are kept consists of two parts. The first is called the debit, this is the left side, and the second is called the credit - the right side. The balance sheet consists of assets and liabilities, which at any given time must be equal to each other. In this case, the latter are equal to the sum of capital and liabilities.
Assets reflect information on the composition and value of property, as well as on the property rights of the organization, determined for the correspondingdate. Liabilities are an indication of the sources from which assets arise.
Accounting entries
Each of the double entries is called a transaction, it changes both an asset and a liability and at the same time maintains a balance. When assets increase, this is reflected in the debit of the accounts. And when liabilities increase - on a loan. The operation of the law of conservation is observed: all debit amounts are always equal to the credit amounts, thereby ensuring a total zero balance. This makes it possible to control the correctness of accounting - if there is no balance, it means that an error was made in it.
For example, if the founder contributes 10,000 rubles. in the authorized capital of the company, this means that it has an asset in the form of cash. At the same time, the enterprise has an obligation to the founder. In this case, a double entry is made:
Debit on a cash account (cash desk or bank) - Credit on authorized capital - 10,000 rubles.
The main thing about double-entry bookkeeping is that it can be used to keep track of where funds come from and where they go. For example, when funds are spent, this is reflected in the credit of the Bank or Cash account. But at the same time, a debit entry is made that shows where they went. This may be the repayment of debt or the issuance of cash on the advance report. And also these records allow you to see the overall financial situation in the organization through the balance sheet.
Problem of principle
It lies in the fact that financi althe results that are reflected in the accounting are distorted by the inflationary processes taking place in the economy. According to experts, this is a big drawback of the double-entry method. At the same time, there is an international reporting system. Some of its standards allow solving this problem by applying revaluation methods. But in this case, different accounting options are allowed, which entails ambiguity in the interpretation of reporting.
