Abstract Early writers on bookkeeping were intent upon giving instruction in the bookkeeping practice of the day and indulged in very little theorizing. The writers did not enter into explanations of how transactions should be thought out or why one did thus and so, but confined themselves strictly to telling in detail how to perform the acts of record-keeping. An attempt to formulate the early reasoning involved in analyzing transactions into debits and credits must therefore be hypothesized out of the phraseology used and by trying to read between the lines of the practical explanations of how the record was to be made. Just how that record was first expanded to include impersonal accounts is unknown. But it seems not improbable that the impulse came from traders rather than bankers, although the two occupations merged into each other much more then than now. It seems quite reasonable to aspect that when the use of ledger accounts was extended into trade, the incompleteness of the record would become much more apparent.

Abstract The article presents the history of the joint stock company. Though it is not possible to discover instances of the joint stock company in England before the middle of the Sixteenth century, it must at the same time be recognized that before that date there were tendencies that would make its ultimate establishment inevitable. The trade of the Italian city states was already including western Europe in its scope and Italian finance consequently exerted an important influence in England. Naturally methods and organizations employed were copied to some extent abroad. There were two main lines of development which might result in the formation of a joint stock body. These were the medieval partnership and the growth of the idea of a corporation. The canonist doctrine on the use of capital discouraged loans while it encouraged the formation of partnerships. There were the "Commenda" and "Societas," both of which were in frequent use on the continent and were forms of the medieval partnership. In the commenda the commendator provided the capital and the commendatarius managed the investment, in the societas both contributed capital. In 1284, 1206 and 1312 certain Italian societas were granted rights to trade in England.

Abstract The article presents comments by scholar E.W. McCul on the survey on "Cost Accounting for Distribution by the Manufacturer," conducted by the Department of the Chamber of Commerce of the U.S. in the fall of 1929. The margin between the sales price and the cost of manufacture has frequently been the subject of criticism. This criticism arises from the assumption that costs in the marketing operations are too high. Those who undertake to analyze this statement are immediately confronted with the necessity for defining the phrase too high. How can it be known definitely that a cost is too high, unless there be a basis of cost that is not too high, in short, a basis that may be accepted as standard? A second question naturally follows. How can such a standard be set up, unless there be definite specifications on which it is predicated? The technique of cost accounting for distribution seems not to have reached that state of development that cost accounting for manufacture has reached. For this reason, possibly, knowledge of distribution costs is not as adequate as knowledge of costs of manufacture.

Abstract Anyone who indulges in a mental résumé of major topics of accounting discussion for recent years would probably emerge with one or the other of two convictions, either one is rapidly drifting away from moorings of older conceptions of basic elements of accountancy, or that one is growing with considerable rapidity in new directions. The word capital for example, has long been used as a term to indicate the investment brought into a business by proprietory interests. It was distinctly associated with contribution. Statutory regulations concerning limited liability corporations further emphasized this concept by requiring that the proposed sum of capital be definitely stated from the very inception of the organization, that it be fully paid in and that it be maintained intact against the encroachment of dividends. Capital stock was considered by legislatures and courts as representing owners' contribution, the amount dedicated to purposes of the business by those controlling the concern's affairs and enjoying residual profits, if any. Is accounting thought drifting away from this and other basic conceptions, or is it is merely growing out of garments in which it has for so long been clothed? No-par stock has brought occasional presentations of financial structures in which original contribution was divided between capital stock and initial surplus.

Abstract Many accountants have lack of knowledge of their own profession. Neither they have the desire to gain knowledge. Not only the historical aspects of accountancy are unknown but important matters as laws affecting the profession, societies of accountants, and the ethics absolutely essential to the proper practice of accountancy are unheard of in some cases. The study of history of one's profession, acquaints a student with the mistakes and the achievements of those who preceded him. The study of fact and conditions is important as it gives the student reasoning ability that later will permit him to apply such remedies and measures that are necessary to turn possible failures into successes. Specifically, the accountant who merely has his knowledge of debit and credit, or who knows a chart of accounts and has had training in recording facts in books of account will not succeed unless he knows how to present these facts to his client in such manner as to preclude any misunderstanding.

Abstract The article discusses the importance of distribution and distribution costs as elements in business activities of today. It is well recognized that as production has become more efficient and economical, constituting less and less of a problem, distribution has become more complicated and costly, representing more and more of a difficulty. This fact does not in itself necessarily constitute criticism of existing distribution methods, but is simply an expression of conditions which have been brought about by economic, social and technical developments of recent years. It is, however, certainly desirable that the distribution of products of industry be accomplished economically and that every effort be made to bring about reductions in the cost of distribution comparable to those which in the last half century have been brought about in respect to costs of production. The cost accountant has rendered invaluable service to production engineers in their efforts toward cost economy. The present situation offers an outstanding opportunity to the cost accountant to furnish equally valuable aid to the marketing specialist in his task of obtaining mass distribution at costs comparable with those effected in the factory under mass production.

Reviews various books on accounting. "Tendenzen zur Aussonderung von Vermögenswertänderungen in Betriebswirtschaftslehre, Wirtschaftspraxis und Steuerrecht," by Henerich Horn; "Die nennwetlose Aktie," by Werner Rusche; Erfassung und Verrechnung der Gemeinskosten in der Unternehmung," by Frits Hensel.

Abstract The student who understands the purpose of a course and who sees how the course will meet his needs has gone far in preparing himself for the study of that course. It is pertinent, therefore, to ask what benefits may be expected from a study of accounting which will justify the necessary expenditure of time. If it be true that the purpose of education is to fit one for living, how does the study of accounting aid in the realization of this aim? Whether one wishes it or not, most students are compelled to spend a large portion of the available time in providing for the necessities of life. The vocational value of bookkeeping and accounting is accepted without question a it is recognized everywhere that efficiency in the use of such knowledge is of direct value to employers. Accounting, however, does more than equip one to hold a mere routine job. Simple record making often leads to more important positions for those who can see beyond boundaries of their first job and who can make use of their experience and opportunities. Accounting provides the background for advancement as it enables one to see how his work fits into the work of other departments. It is not necessary to be a bookkeeper or a public accountant in order to make use of training in accountancy. The subject furnishes one method of learning about the industrial organization of present society.

Abstract During the long evolution of bookkeeping, the teaching process has made use of several methods of approach. By the mid of the nineteenth century, more attention was directed to ledger accounts as a preliminary to analyzing transactions into debits and credits. This was the method wherein the purpose of the usual accounts, and their plus and minus characteristics, formed the ground work of instruction. Modern bookkeeping requirements are becoming increasingly complex within a framework of a methodology which was much more adequate years ago. Students of elementary bookkeeping feel the consequent difficulties, although they do not understand them. After considerable effort they manage to learn against perfectly natural impulses to the contrary that expense is not an asset, and that inventory is not an expense although it consists of purchased goods which, in a purchase account, are treated like expenses. The task is not of teaching procedure, but of teaching ways of thinking about business transactions.

Abstract The purpose of the elementary accounting courses given at the Chicago, Illinois-based University of Illinois is to give the students a thorough knowledge of basic transactions and fundamental procedure. Much of the material given in elementary accounting course can be disregarded when an examination is prepared because it represents routine work. Subjects such as, the classification of accounts, the preparation of short financial statements, adjusting entries, closing of the ledger, and books of original entry are included in the first-semester examination. The second-semester course is devoted more to accounting procedure and so for this reason the final examination given in the second semester may be counted upon to have a large number of difficult journal entries covering a wide variety of transactions. The examination for the second semester may include problems such as requiring adjusting entries, where the amount must be calculated as well as entries formulated, requiring the opening of the books of a corporation, or requiring the changing of a single proprietorship or partnership.