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{{Bookkeeping}}
'''Double-entry bookkeeping''', also known as '''double-entry accounting''', is a method of [[bookkeeping]] that relies on a two-sided [[accounting]] entry to maintain financial information.
For example, if a business takes out a bank loan for $10,000, recording the transaction in the bank's books would require a
The basic entry to record this transaction in
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The earliest extant accounting records that follow the modern double-entry system in Europe come from [[Amatino Manucci]], a [[Florence|Florentine]] merchant at the end of the 13th century.<ref>{{cite journal |url=http://130.74.92.202:82/record=b1000778 |first=Geoffrey A. |last=Lee |year=1977 |title=The Coming of Age of Double Entry: The Giovanni Farolfi Ledger of 1299–1300 |journal=Accounting Historians Journal |volume=4 |issue=2 |pages=79–95 |jstor=40697544|archive-url=https://web.archive.org/web/20170627232023/http://130.74.92.202:82/record=b1000778 |archive-date=27 June 2017 |url-status=dead|doi=10.2308/0148-4184.4.2.79 }}</ref> Manucci was employed by the Farolfi firm and the firm's ledger of 1299–1300 evidences full double-entry bookkeeping. Giovannino Farolfi & Company, a firm of [[Florence|Florentine]] merchants headquartered in [[Nîmes]], acted as [[moneylender]]s to the [[Archbishop of Arles]], their most important customer.<ref>Lee (1977), p. 80.</ref> Some sources suggest that [[Giovanni di Bicci de' Medici]] introduced this method for the [[Medici bank]] in the 14th century, though evidence for this is lacking.<ref>{{cite book|page=97|title=The Rise and Decline of the Medici Bank, 1397-1494|last=de Roover|first=Raymond|year=1963|authorlink=Raymond de Roover|publisher=Beard Books|isbn=9781893122321}}</ref>
The double-entry system began to propagate for practice in Italian merchant cities during the 14th century. Before this there may have been systems of accounting records on multiple books which, however,
[[Benedetto Cotrugli]] (Benedikt Kotruljević), a [[Republic of Ragusa|Ragusan]] merchant and ambassador to [[Naples]], described double-entry bookkeeping in his treatise ''[[Della mercatura e del mercante perfetto]]''. Although it was originally written in 1458, no manuscript older than 1475 is known to remain, and the treatise was not printed until 1573. The printer shortened and altered Cotrugli's treatment of double-entry bookkeeping, obscuring the history of the subject.<ref>{{Cite journal |last=Yamey |first=Basil S. |date=January 1994 |title=Benedetto Cotrugli on bookkeeping (1458) |url=http://www.tandfonline.com/doi/abs/10.1080/09585209400000035 |journal=Accounting, Business & Financial History |language=en |volume=4 |issue=1 |pages=43–50 |doi=10.1080/09585209400000035 |issn=0958-5206}}</ref><ref>{{Cite journal |last1=Sangster |first1=Alan |last2=Rossi |first2=Franco |date=2018-12-26 |title=Benedetto cotrugli on double entry Bookkeeping |url=http://www.decomputis.org/ojs/index.php/decomputis/article/view/332 |journal=De Computis - Revista Española de Historia de la Contabilidad |volume=15 |issue=2 |pages=22 |doi=10.26784/issn.1886-1881.v15i2.332 |s2cid=165259576 |issn=1886-1881|doi-access=free }}</ref> [[Luca Pacioli]], a [[Franciscan friar]] and collaborator of [[Leonardo da Vinci]], first codified the system in his [[mathematics]] [[textbook]] ''[[Summa de arithmetica|Summa de arithmetica, geometria, proportioni et proportionalità]]'' published in [[Venice]] in 1494.<ref>[http://acct.tamu.edu/smith/ethics/pacioli.htm Luca Pacioli: The Father of Accounting<!-- Bot generated title -->] {{webarchive|url=https://web.archive.org/web/20110818055709/http://acct.tamu.edu/smith/ethics/pacioli.htm |date=18 August 2011 }}</ref> [[Pacioli]] is often called the "father of accounting" because he was the first to publish a detailed description of the double-entry system, thus enabling others to study and use it.<ref>{{cite web|url=http://basicaccountinghelp.com/bookkeeping-instructions-from-the-mid-fifteenth-century/|title=La Riegola de Libro, Bookkeeping instructions from the mid-fifteenth century|access-date=26 December 2016|archive-url=https://web.archive.org/web/20171229112252/http://basicaccountinghelp.com/bookkeeping-instructions-from-the-mid-fifteenth-century/|archive-date=29 December 2017|url-status=dead|df=dmy-all}}</ref><ref>{{cite book |last=Livio |first=Mario |author-link=Mario Livio |title=The Golden Ratio |publisher=Broadway Books |year=2002 |location=New York |pages=[https://archive.org/details/goldenratio00mari/page/130 130–131] |isbn=0-7679-0816-3 |url-access=registration |url=https://archive.org/details/goldenratio00mari/page/130 }}</ref><ref>{{cite web|url=https://www.bbc.com/news/business-41582244 |title=Is this the most influential work in the history of capitalism? |date=23 October 2017 |access-date=23 October 2017 |website=bbc.com}}</ref>
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==See also==
* [[Debits and credits]]
* [[Desi Namu]], Indian accounting system
* [[Momentum accounting and triple-entry bookkeeping]]
* [[Merdiban]], accounting system of the Ottoman Empire, Abbasid Caliphate and Ilkhanate
* [[Nostro and vostro accounts]], typically held by one bank on behalf of another bank
* [[Single-entry bookkeeping]]
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==External links==
{{wikibooks|Accounting
* [http://www.responsive.co.nz/theory.html A Concise Explanation of the Accounting Equation]
* [https://www.dwmbeancounter.com/BCTutorials/BCIntro/ Bean Counter's bookkeeping tutorial]
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