Beruflich Dokumente
Kultur Dokumente
ITRODUCTION-
Ijiri (1967) focuses on two other dimensions of the double-entry bookkeeping method
than the dual result presentation (via the payment and activity sides): the essence of
double-entry is that every increment is causally related to a decrement, and the significant
contribution of double-entry over single-entry is that the present financial status of a firm
is fully accounted for by past events. At a given date, the assets and liabilities describe the
present position of an enterprise, and the capital accounts, including income
(performance result), can be seen as a summary of past events. If past events have been
properly accounted for, then the cumulative past should equal the present. In single-entry
bookkeeping the present status is represented by a list of assets and liabilities, but double-
entry compels an accounting of the present by an appropriate set of capital accounts that
captures the past events that led to the present position. Thus, according to Kam
accountability is the essence of double-entry.
Walb points out that the development of cameral accounting can be divided into four
different phases, and in general terms he argues that the development of cameral
accounting parallels that of commercial accounting, namely the development of a control
instrument, the preparation of accounting information for statistical purposes and the
preparation of an income statement, showing the performance result.
In the second phase introduction of current due accounting, a strong link between
bookkeeping of the cash transactions in the chronologically kept daybook and the
systematic bookkeeping in the ledger was introduced. Moreover, within the systematic
bookkeeping, one developed any typical form of the cameral ledger accounts, which later
came to determine the cameral bookkeeping method (Wysocki, 1965). The point of
departure for the considerations in this phase was the attempt not only to include already
realized revenues and expenditures (cash or «actuals» accounting), but also the future
revenues and expenditures . The ledger prepared in this way already contained important
parts for the preparation of a balance sheet containing claims and obligations as well as
an income statement (profit and loss statement), showing a performance result (Wysocki,
1965). When it is a matter of the application areas of cameral accounting, Wysocki
points out that it may be maintained that the cameralist's single-entry bookkeeping
method is far better than the merchant's double-entry bookkeeping method with regard to
adjusting to changes, because the latter method is based upon a very strict procedure for
bookkeeping the transactions and for closing the accounts. It is therefore understandable
that the shaping of cameral accounts is manifold compared to the commercial accounts
(Wysocki, 1965, p. 1 Enterprise cameralistics has developed the systematic single-entry
bookkeeping method of commercial accounting. As pointed out earlier in the article, the
latter method allows for the preparation of the performance result via the payment side
(balance sheet), and therefore forms the basis of modified financial accounts with an
element of a performance result. When using the former method, however, which I refer
to as the systematic single-entry bookkeeping method of enterprise cameralistics, the
performance result is not only reported via the payment side (balance sheet). It also
appears via the activity side (the profit and loss account), like it does when using the
merchant's double entry-bookkeeping method. Therefore, the systematic single-entry
bookkeeping method of enterprise cameralistics forms the basis of modified financial
accounts/performance accounts.
ReferencesLee, T.A. (1986), Towards a Theory and Practice of Cash Flow Accounting.
New York and London: Garland Publishing, Inc.
CHINMOY GHOSH
LECTURER, ACCOUNTING AND FINANCE
KOLKATA, W.B.