Capitalism, Double-entry Bookkeeping, Economic growth, Economic activities

The article determines the functioning of double-entry bookkeeping during the Age of Stagnation of accounting. Most studies in accounting history have focused on tracing the evolution of accounting techniques and methodology; little effort has been devoted to a consideration of what accounting's role in the historical process has been. The early double entry authors enumerated the advantages of double entry, presenting a series of benefits to be derived from its use ranging from peace of mind and freedom from illness to the profitable employment of assets. One aspect of capital is its balancing function in the initial inventory or ending balance sheet; the role it plays in expressing, in one compact figure, the investment of the owner. This lack of interest in periodic calculations of total profits was mitigated by the practice of venture accounting. The treatises and account books of this period reveal an emphasis on individual activities, whether temporary partnerships, factorage activities, trade in specific commodities or to specific ports, or investments in lands, ships, or securities. Accounting

This paper focuses on the use of double entry bookkeeping by one of the leading merchants and financial advisors of Tudor England, Sir Thomas Gresham. Gresham's double entry journal for the period, 26 April 1546 to 10 July 1352, is doubly interesting. It is a valuable example of the early use of double entry bookkeeping by a successful merchant, and it is the earliest known extant English account book in double entry. The extant journal reveals Gresham's activities as a young merchant in the London, England-Antwerp, Belgium trade between 1546 and 1552. Throughout the period he engaged actively in both export and import activities. As a merchant adventurer he exported large quantities of English broad cloths and kersies to Antwerp. As a member of the Mercers' Company he imported, with the aid of his factor Robert Berney in Antwerp, merceries such as silk, velvet and satin. The journal also reveals his participation in a large number of exchange transactions during this period, an activity in which he was to become even more interested in subsequent years.