[Social Talk] Single bookkeeping and double entry bookkeeping

[Social Talk] Single bookkeeping and double entry bookkeeping

Bookkeeping(簿記) is related to accounting, but it can be seen as close to the practice commonly used in our lives.
It records the liquidity of assets and the incidence of liabilities arising from economic activities, and records the revenue and expenses for a certain period.

Babylon's account of bookkeeping dates back to about 2,600 BC, recorded as a small clay reputation. It is a very old technique.

This book is divided into single bookkeeping and double bookkeeping bookkeeping.

Single etnry bookkeeping(單式簿記) is very simple. It is to fill in the basic matter which goes out without thinking about this and that.
We can think of the common household account.
When you write a household account, you will use the money you wrote and the money you received.

It is mainly used in small-scale enterprises or private companies, or government offices that do not require profit and loss calculation.

It is a simple form of bookkeeping that matches only the amount of money held and the amount of deposits and withdrawals due to income, expenses, and balance.

The double entry bookkeeping(複式簿記) should identify the elements of asset fluctuations and the related items of those elements. It is double entry bookkeeping which is used for accounting, business management work which we often say.

You need to know the principle of lender averages and divide the transaction into debit and credit, which means that the amount is calculated on a constant basis. In other words, because we know the relationship with the fluctuation of the property, we can grasp both the result and the cause at the same time.

It is the best way to express the purpose of accounting. Because it is to record the cause and the result accurately to person reading the accounting-related information by grasping the state of the property, element of accounting usually should be considered as double bookkeeping.