Post by rabia373 on Mar 10, 2024 7:28:36 GMT
When I was little I loved the books in the Steamboat collection. They were children's books that were very well written and easy to read. Of all of them, my favorite was “Fray Perico y su donkey” , which told the adventures of a chubby and friendly friar in a convent in Salamanca. I laughed a lot reading it and did it several times during my childhood. Furthermore, I was lucky that the writer of this book, Juan Muñoz , was my downstairs neighbor and sometimes he gave me stories that he had written and had not published. One day when I went down to his house to have a copy of “Fray Perico” signed, Juan put me on the trail of another illustrious Franciscan, who can surely be remembered as one of the smartest monks in history. He was a monk who lived in the mid-th century in the Venetian Republic named Luca Pacioli. Pacioli was, in addition to being a monk, a Renaissance man , studious and versed in many disciplines. He studied mathematics, arithmetic, architecture and astronomy among many things. He was a chess partner of Leonardo Da Vinci himself and helped the architect Vitruvius in some of his works. But what interested Luca above all were “proportions.” As a result of observing Venetian merchants, he realized that the best way to manage finances for them was to use systems that collected data proportionally.
That is why he encouraged the accountants of the time to use a system called “double entry” . Although he did not invent it, he did popularize it as an effective system. And to tell the truth, it was, bec Whatsapp Number List ause it was so effective that it has survived to this day and if today we talk about the International Financial Reporting Standards or IFRS, it is thanks to its work almost six centuries before. Luca Pacioli is considered “the father of accounting” for popularizing the basic rules of “double entry” that have survived to this day and are summarized in: There is no debtor without a creditor, nor a creditor without a debtor. He who receives is a debtor and he who gives is a creditor. Everything I have must be equal to everything I owe What I have is debited or recorded in the DEBT and what I owe is credited or recorded in the CREDITS. Approaching the collection of information from this dual perspective is very useful for any business, since it gives us a general idea of what the company has and what it owes. And from here comes the first accounting tool that we must know. The Balance Sheet of a company Under this approach we are in a position to know the first tool that our Franciscan friend presents to us: The balance sheet of the company, namely: It represents what the company has and owes at a given time.
On the one hand, the company may have: goods and rights On the other hand, the company may owe: debts with third parties or the assets of its partners. Remember that what I have is equal to what I owe Therefore, the Assets are equal to the Net Worth plus the Liabilities. Decomposing the Balance Sheet To understand the parts of a Balance Sheet, the monk Pacioli passes the baton to our beloved Fray Perico, and we are going to imagine as an example what the Balance Sheet of his monastery in Salamanca would be like. Do you not quite curious? How are the elements that compose it placed in the Asset?: The liquidity criterion If we start with our example, on the one hand the monks would have in the ASSETS , all the assets and rights of the monastery, ordered according to its liquidity , from least to most liquid. This means that those goods that cannot be easily converted into money go first and then those that could be converted into money more easily. Fray Perico would first account for the monastery building, for the value it has, which no monk ever wants to be sold, but which is part of the asset as tangible fixed assets.
That is why he encouraged the accountants of the time to use a system called “double entry” . Although he did not invent it, he did popularize it as an effective system. And to tell the truth, it was, bec Whatsapp Number List ause it was so effective that it has survived to this day and if today we talk about the International Financial Reporting Standards or IFRS, it is thanks to its work almost six centuries before. Luca Pacioli is considered “the father of accounting” for popularizing the basic rules of “double entry” that have survived to this day and are summarized in: There is no debtor without a creditor, nor a creditor without a debtor. He who receives is a debtor and he who gives is a creditor. Everything I have must be equal to everything I owe What I have is debited or recorded in the DEBT and what I owe is credited or recorded in the CREDITS. Approaching the collection of information from this dual perspective is very useful for any business, since it gives us a general idea of what the company has and what it owes. And from here comes the first accounting tool that we must know. The Balance Sheet of a company Under this approach we are in a position to know the first tool that our Franciscan friend presents to us: The balance sheet of the company, namely: It represents what the company has and owes at a given time.
On the one hand, the company may have: goods and rights On the other hand, the company may owe: debts with third parties or the assets of its partners. Remember that what I have is equal to what I owe Therefore, the Assets are equal to the Net Worth plus the Liabilities. Decomposing the Balance Sheet To understand the parts of a Balance Sheet, the monk Pacioli passes the baton to our beloved Fray Perico, and we are going to imagine as an example what the Balance Sheet of his monastery in Salamanca would be like. Do you not quite curious? How are the elements that compose it placed in the Asset?: The liquidity criterion If we start with our example, on the one hand the monks would have in the ASSETS , all the assets and rights of the monastery, ordered according to its liquidity , from least to most liquid. This means that those goods that cannot be easily converted into money go first and then those that could be converted into money more easily. Fray Perico would first account for the monastery building, for the value it has, which no monk ever wants to be sold, but which is part of the asset as tangible fixed assets.