Question

1. Luca Pacioli in his book The Rules of Double-Entry Bookkeeping, first published in 1494, wrote in Chapter 33 that the closing of all the books should be done on the same day. But if, while the books are being balanced, some transactions [events] should occur, they shall be entered in the Journal, but not in the what until the new books are ready?

Multiple Choice

A. Make photocopies of the old ledger until the books are balanced.

B. Prepare a good Excel Spreadsheet of the old ledger until the books are balanced.

C. Not in the new Ledger until all the different accounts of the old Ledger have been carried forward.

D. Don’t worry about the Debits and Credits, they only exist to drive Drexel Accounting students crazy

2. Luca Pacioli in his book The Rules of Double-Entry Bookkeeping, first published in 1494, wrote in Chapter 30 that you should know how to make an abstract or statement of an account if your debtor requests. He described in detail that the account should be copied onto a sheet of paper large enough to contain it all. How did Pacioli express the need to do this statement for the debtor?

A. You should do it willingly.

B. You should do it reluctantly.

C. You should do it rarely and only after many requests by the debtor.

D. You should never do it.

Answer 1

1: The answer is option “C” - Not in the new Ledger until all the different accounts of the old Ledger have been carried forward.

This is because when the balances of old ledger are not carried forward then it will lead to discrepancies and the purpose of double entry bookkeeping will not be achieved.

2: The answer is option “A” - You should do it willingly.

This is because as per Luca one should be willingly doing this and should service the request of the debtors at the earliest without making them wait unnecessarily.