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Title: Double-entry bookkeeping as an institution

Authors: Masaya Fujita

Addresses: School of Accounting, Kumamoto Gakuen University, Oe 2-5-1, Chuo-ku, Kumamoto City 862-8680, Japan; Kyushu University, Hakozaki 6-19-1, Higashi-ku, Fukuoka City, 812-0053, Japan

Abstract: The subject of the relation between DEB and capitalism is a matter of the historical character of DEB. Generally speaking, profit and loss calculation that many accounting scholars stress, seems to be common to all histories of economic activities. I believe that even Robinson Crusoe calculated profit and loss in a solitary island in the distant ocean. Therefore, it may be difficult for the historical character to be clarified from the view point of the function of calculating profit and loss. However, DEB has another function of dividing profit. Here, I am elucidating the ground that this latter function has made DEB become an important institution in capitalistic society.

Keywords: double-entry bookkeeping; capitalistic order; dividing profit and loss; separate merchandise accounting; dividend regulation; capitalism and bookkeeping.

DOI: 10.1504/IJCA.2017.083638

International Journal of Critical Accounting, 2017 Vol.9 No.1, pp.53 - 67

Available online: 10 Apr 2017

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