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International Accounting
 

The concept of capital and the hypotheses about the genesis of double entry bookkeeping

Vol. 20, Iss. 18, SEPTEMBER 2017

PDF  Article PDF Version

Received: 28 June 2017

Received in revised form: 11 August 2017

Accepted: 31 August 2017

Available online: 29 September 2017

Subject Heading: THEORY OF ACCOUNTING

JEL Classification: M41

Pages: 1040–1050

https://doi.org/10.24891/ia.20.18.1040

Samusenko S.A. Siberian Federal University, Krasnoyarsk, Krasnoyarsk Krai, Russian Federation
sv_sam@bk.ru

Importance The article considers the theory of the genesis of double entry bookkeeping, its various historical versions, and the concept of capital as a backbone element in the origin of double entry bookkeeping.
Objectives The purpose is to reveal historical and causal relationships between the concept of owner's capital and various hypotheses of the genesis of double entry bookkeeping that reflect their historical and logical interdependence.
Methods The study employs methods of analysis, synthesis, comparison, grouping, generalization, and the system approach.
Results I analyze hypotheses of the origin of the double-entry bookkeeping based on formal features of double entry bookkeeping, according to A. Sangster's concept. The paper presents my own investigation and critical assessment of the Indian version of the genesis of double entry bookkeeping and supplements the Roman and Greek versions with recent research data. It discloses the significance of the owner's capital concept as a factor of the origin of the double bookkeeping in all historical versions. I show that the existence of the concept of capital and capital accounts without other formal characteristics do not serve as sufficient evidence of the existence of double entry bookkeeping.
Conclusions The paper verifies the hypothesis that the existence of accounts for financial results relating to capital gains calculation is one of formal features of double entry bookkeeping. It shows that alternative historical versions of the genesis of double entry bookkeeping are also connected with the existence and use of capital accounts in accounting books.

Keywords: double entry bookkeeping, capital, accounting history

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