Credit Entry Research Articles

Bookkeeping, but not for profit: A special form of double entry in a 16th century Venetian charity

Double entry bookkeeping is considered to involve the recording of monetary amounts and is recognised as consequently facilitating financial reporting concerning the financial stewardship of an entity. This paper presents a unique example of double entry bookkeeping that responds to a different stewardship need, one where quantities are sometimes the focus of interest, while elsewhere it is monetary amounts. Duality is maintained throughout, even in cases where the debit entries are in monetary amounts and the credit entries are in quantities. These findings arose from an investigation into the diffusion of double entry from its banking and commercial roots into the not-for-profit sector in 16th century Venice. Its focus was the accounting practice and the management of a small charitable hospice within the context of its socio-political, economic, and commercial environment. Identification of this hybrid variant form of double entry bookkeeping in the account book of the charity confirms that diffusion of the method had occurred. And, it had done so in a tailored way that was more varied and nuanced by its purpose than might have been anticipated from the texts of Pacioli and the several authors of 16th century Venetian bookkeeping manuals. It is concluded that the differences identified were adopted to delineate responsibility and facilitate assessment of stewardship.

Subsidize or Not: The Competition of Credit Card and Online Credit in Platform-based Supply Chain System

Credit purchasing has seen dramatic growth recently, stimulating online platforms to provide online credit services in competition with the credit card. We build a game-theoretical model to explore the platform's credit entry strategy when facing the credit card competition. Consumers differ in their credit card ownership and disposable personal incomes (DPI), and perceive a hassle cost of the credit purchase. We find that online credit offering brings an increased retail price. When the proportion of credit card ownership is high, the bank and platform subsidize consumers when the credit misfit cost is low, but charge an interest rate otherwise in an integrated system where the platform acts as a seller. However, the platform will never subsidize consumers in independent system where the retailer sells through the platform. The platform will enter the credit market only when the fixed entry cost is sufficiently low in integrated system, but only when the commission fee or misfit cost is large in independent system. When the proportion of credit card ownership is low, the platform will subsidize consumers when consumer dispersion in DPI is large or misfit cost is low. In addition, the platform has a high willingness to choose the entry strategy when the commission fee is large or misfit cost is low in independent case. Discussion and extension verify the robustness of basic model.

Reporting and Disclosure of Investments in Sustainable Development

This paper builds upon prior research regarding the quest for a sustainable measuring method. Here, we present a method to integrate sustainability and financial accounting at the level of transaction recording and introduce the concept of environmental debit and credit entry. This concept is illustrated through investment reporting. Identification of the research gap is based on the review of the initial population of 141 research papers and is supported with the European legal framework analysis. Logistic regression on the 500 largest European-based companies justifies the environmental footprint inclusion into the integrated journal entry. This study provides robust data concerning the limitations of the current financial reporting system. Our findings support the conclusion that the currently applied hybrid sustainable disclosure with synthetic ratios, indicators and unstructured narratives failed to provide a comprehensive and auditable picture of a company’s environmental.

Compensation Revisited

This research examines how to recompense customers, from a social resource theory perspective, which portrays financial compensation as the act of offering the resource “money” to customers during a service recovery attempt. This resource can differ in its particularism (is the money offered in a more or less personal way?) and concreteness (is the money offered in a more or less tangible way?), which are shown in two experiments to affect recovery outcomes. Specifically, personal compensation accompanied by a handwritten note from the service person (vs. impersonal: a typewritten note from the firm) fosters recovery satisfaction, mediated by justice perceptions, and reciprocal customer behavior (tipping, cross-buying), mediated by an obligation to reciprocate. Tangible compensation in the form of a banknote or banknote-like coupon (vs. intangible: a credit entry) also fosters reciprocal customer behavior via the obligation to reciprocate. In both studies, relationship strength amplifies the indirect effect of compensation’s particularism on recovery satisfaction. As a theoretical contribution, we show that the way the monetary resource is presented matters for service recovery. As a major managerial takeaway, this research presents personal (vs. impersonal) compensation as an impactful property of compensation: It increases recovery outcomes without additional monetary costs. Further, managers learn that handing over the money in a personal and tangible way can be a way to increase monetary returns to the firm in the form of tipping and cross-buying.

Mistaken Payments: Are They Free Gifts from Banks to Their Customers?

Due to the common misconception that moneys in bank accounts are owned by their account holders (who are usually the bank customers), and, the complicated nature of the principles of banking law, sometimes, it may be thought that a mistaken payment resulting from an erroneous credit entry in a customer account is a free gift from the bank to its customer. However disappointing it may be for the customers, this is not so. The purpose of this article is to examine this position with reference to the remedies provided in both civil law and criminal law of Sri Lanka. More specifically, Part I of this article will examine the civil law remedy of “action for money had and received”, which would be available to banks to recover money that has been mistakenly paid to their customers, and, its application in Sri Lankan law. Part II of this article will examine the applicability of criminal law, in particular, the offences of theft and criminal misappropriation under the Penal Code of Sri Lanka, in situations where customers have obtained mistaken payments from their banks with dishonest intention.

Red and black interpostal accountancy marks

The volume of interpostal mail increased by several thousand percent during the 19th century. Countries with bilateral revenue sharing agreements, including the Australian colonies, used four types of Accountancy Mark systems from 1843 to 1876. Marks on interpostal mail showed the amount of shared revenue between two or more postal entities. Accountancy Marks were shorthand notations for journal entry instructions to record amounts owing to, or amounts owing from other postal authorities. For prepaid mail, the calculation of shared revenues to be paid to the destination country was marked in red on outgoing mails, and for unpaid mail, the amount owed to the sender country for its share of unpaid mail was marked in black. Red was used to indicate a credit entry in the sending country account, and black was used to indicate a debit entry for an amount owed to the sending country. During the 33-year period, the system was changed from the recording of a simple manuscript or handstamp numeral marking, to PD, PP, and P abbreviation handstamps. The system was then modified to include Articles handstamps and Letter or Way Bills. Finally, a system of country-designated handstamps was used with specific amounts due. The paper supplies illustrations of how Accountancy Mark calculations were performed, and discusses the cost and time disadvantages and reliability issues of the Accountancy Mark system together with linkages to accounting.

Globalisation and rural poverty

This paper surveys the effect of globalisation on rural poverty. It challenges the presumption of a positive relationship between globalisation and welfare of the poor. The forces of change through globalisation and liberalisation are seen to influence the welfare of the rural poor through their influence on productivity, growth, income distribution, technologies, security of livelihoods, and national policies. Globalisation has both debit and credit entries: large potential benefits, for example from accelerated growth, but also the real danger that the rural poor will be left out, for example they will not have access to the knowledge and other assets necessary for success in a commercial world.

Integration and independent learning in a business synoptic module for international credit entry students

This paper details an action research enquiry into the efforts undertaken at Brookes Business School to bring integration to the international business curriculum and develop student autonomy via a synoptic module for international credit entry students. After outlining the general aims for student learning in higher education and the difficulties in achieving them by means of conventional didactics, an overview of the history, development and conceptualization of the generic synoptic module is presented. The main features of our international business synoptic are then illustrated, with a discussion of the pedagogical principles that informed the design and implementation of processes aimed at facilitating effective learning. In assessing what the module has accomplished, evaluatory evidence that also takes into account students' perceptions, provides support to its efficacy.

Foreign travel in the balances of payments

The credit entries cover expenditures in Honduras of foreign tourists and businessmen. The debit entries cover expenditures abroad of Honduran students, tourists, and businessmen.

Balance Sheets in a System of Economic Accounts

The purpose of this paper is to examine some of the theoretical considerations that might provide a foundation for a system of financial accounts, and some of the practical conclusions that appear to arise from these considerations. It is not its purpose to propose a form that might be adopted for the construction of financial accounts. Most of the accounts that have so far been developed are compiled on the assumption that financing transactions are essentially passive reactions accommodating income, consumption, and investment transactions, and do not themselves induce any reactions in the other accounts. They are compiled on the assumption that, as far as the money and credit entries are concerned, the problem is to show the "main work that money and credit do in clearing markets."2 Thus, in the system of equations underlying the Netherlands Central Economic Plan, there are no equations relating to the financing items in the Monetary Survey that it contains.3 This paper, on the contrary, is based on the assumption that financial transactions are positive factors inducing reactions in income and expenditure accounts. They are not merely passive reactions to income and expenditure transactions.

The Matrix as a Tool in Macro-Accounting

THE purpose of this paper is to analyze the formal structure of the matrix as an accounting tool (I to 7), to review actual inputoutput matrices under the aspect of their formal structure (8), and finally to construct an income-product matrix (g to I 2 ). i. A matrix, as used in macro-accounting, is a form of presentation of accounting material. It is distinguished from other forms of presentation mainly by four technical features: economy in figures, consolidation of interaccount flows, absence of narrations, and specific grouping of the accounting material. The economy in figures is obtained by making one figure serve two purposes simultaneously. According to the direction in which it is read, either vertically or horizontally, a figure is either a debit entry or a credit entry. This feature has the advantage that the number of figures required to communicate a given volume of information is in a matrix roughly one-half of that required in any other form of accounting statement. On the other hand, difficulties arise if the volume of information becomes large. The usual device of making statements manageable in size, which is to relegate part of the information to subsidiary schedules, is not available in the case of a matrix, because, in consequence of the double purpose served by each figure, figures cannot be taken out of the context within the matrix. A matrix grows therefore in direct proportion to the volume of information and, after a certain point, becomes an unwieldy instrument. The second feature is the necessity of consolidating inter-account flows. Transactions affecting any two accounts have to be contracted into two figures, because the framework of a matrix has only two places available for the record of flows affecting two accounts. One is the place of intersection of the row representing the credit entries to the first account with the column representing the debit entries to the second account; in this place, the flows from the first to the second account are recorded. The other place is the intersection of the row of the second account with the column of the first account, which is the place for the flows from the second to the first account. The matrix thus allows an expression of the direction in which transactions flow between any two accounts. But no more. If the transactions between two accounts are for instance composed of a number of heterogeneous flows and that occurs quite regularly in macro-accounting the social accountant faces an inconvenient choice. One alternative is to consolidate different transactions among the same transactors. This entails a loss of information or even of meaning, though the macro-accountant may help himself to some extent by cumbersome devices such as double rows 1 or footnotes. The other alternative is to split one transactor into as many accounts as different intertransactor-relations are to be recorded. This entails a loss of institutional or other transactor unity. In any case, the number of meaningful flows between two transactors which can be shown in a matrix is technically limited by the number of available accounts. The third feature of a matrix is the absence of what accountants call narration, that is a short explanation of the meaning of an entry. An economy in text is thus added to the economy in figures, making the matrix a still more concise form of presentation. Without the guidance of narrations, the reader of a matrix can derive the meaning of an entry solely from the captions of the row and column at whose intersection the figure stands. In this way, captions in a matrix are charged with two functions. They have to describe not only the account as a point of reference, but also the kind of transactions entered in the account. To call a personal account by the name of the transactor, or the impersonal account by the subject-matter assembled in it, is not sufficient. A way must also be found to describe the transactions entered in the account; otherwise