Question

The terms "Debit" and "Credit" introduced in Pacioli's system originally meant:

• A. Debit means owned by proprietor; Credit means owed to the proprietor
• B. Debit — Latin "debeo" (owed to proprietor); Credit — Italian "credito" (owned by proprietor)
• C. Debit means cash received; Credit means cash paid
• D. Both terms mean the same

Answer 1

Answer:

B. Debit — Latin "debeo" (owed to proprietor); Credit — Italian "credito" (owned by proprietor)

LUCA PACIOLI (1447-1517)

• Father of Accountancy

• Father of Modern Accounting

• Italian Mathematician

• Published 1st Book on Double Entry system of Accountancy in 1494 (VENICE) Summa de arthemetica, Geometrica and Preportini and Preportionalita

• Summa de arthmetica considered as as the 1st Book on Double entry system.

• Introduced the term Debit and Credit.

• Credit - Italian word - Credito - Owned by the proprietor.

• Debit- Latin word- debeo - owed to proprietor.