Daming: Dad, you are really not good at governing the country

Chapter 321 Those who have studied in "Tilanqiao" know that there are 21 ways to falsify accounts.

Zhu Gang said solemnly: "Although Li Jin adopted the method of drawing lots to distribute porridge to prevent the gentry from doing anything, it does not mean that they have no room to enrich themselves.

With the mathematical talents at their disposal, these gentry could keep their accounts flawlessly.

Unless the imperial court can find the real 'secret account', they can blatantly defraud disaster relief reimbursements."

According to historical records: As the initial form of single-entry bookkeeping, written narrative recording appeared as early as the Shang Dynasty 2424 years ago.

To put it simply, this means recording the time, place, content and amount of income and expenditure in a diary-like manner for each income and expenditure item.

However, according to the research of later historians, the written narrative recording method of the Shang Dynasty was not rigid and there was no fixed recording format.

Later, the single-entry bookkeeping method developed to the Spring and Autumn Period and the Warring States Period, and began to use the names of accounting objects.

People use in and out as accounting symbols, and there is a fixed format for accounting records.

There are generally two modes for recording each economic matter.

① Time when economic events occur → Accounting record symbol → Name of accounting object → Quantity (amount) and measurement unit

For example: On the 22nd day of the first lunar month, 200 dan of millet were collected.

②Accounting record symbol → name of accounting object → quantity (amount) and measurement unit → time when economic event occurs

For example: Two hundred dan of millet was paid in on the twenty-second day of the first lunar month.

As for the so-called double-entry bookkeeping method, it had already begun to take shape in the Tang and Song dynasties and prospered in the Ming and Qing dynasties.

It went through a development process from a three-legged account to a Longmen account, and then to a four-legged account.

Simply put, tripod account is an incomplete double-entry bookkeeping method.

By dividing transactions into two categories, different accounting rules are used.

① Transfer items of non-cash transactions: double-entry bookkeeping, record two transactions and include them in both the incoming and outgoing accounts.

② Cash receipts and payments: single-entry accounting, only record the other party of cash, and omit the cash.

Here is a simple example of the difference between single-entry and double-entry bookkeeping.

Mr. Li spent 500 coins to buy a bottle of wine. If expressed in single-entry accounting, it would be: there is one more bottle of wine worth 500 coins in the wine cabinet or 500 coins less in the cash in his pocket.

Double-entry bookkeeping means that there is an extra bottle of wine worth 500 coins in the wine cabinet, and 500 coins are missing from the cash in the pocket.

With this comparison, the advantages of double-entry bookkeeping are obvious.

1. It is more comprehensive than single-entry bookkeeping.

According to the above example, the single-entry bookkeeping method can only know that one bottle of wine is added or 500 coins are missing.

Double-entry bookkeeping can tell you that one more bottle of wine is added, and that 500 coins are missing in cash.

2. A trial balance can be performed on the results of account records to check the accuracy of account records.

If there is an error in the accounting, this balance will be upset.

According to the above example of double-entry bookkeeping, if we record that there is an extra bottle of wine worth 500 coins in the wine cabinet, and that there is 499 coins less in the cash in our pocket.

The auditor can immediately find the problem that 499 and 500 do not match. In contrast, single-entry bookkeeping cannot detect such problems in a timely manner.

3. The double-entry bookkeeping method better reflects the inherent laws of capital movement and can comprehensively and systematically reflect the causes and consequences of capital increases and decreases and operating results.

In the above example, double-entry bookkeeping can directly tell you that you spent money to buy a bottle of wine. Single-entry bookkeeping only records one item, so you don't know where the wine came from or where the money went.

Of course, the disadvantage of double-entry bookkeeping is also very direct, that is, it is more complicated than single-entry bookkeeping.

Later, the Longmen Account was created, which divided all accounts into four categories: income, payment, deposit, and payment.
Several items are listed below to classify and account for accounting objects.

Through "payment - deposit - this", a trial balance is made.

As for the four-foot account, it was developed on the basis of the three-foot account and the Longmen account, and is a relatively mature double-entry bookkeeping method in ancient times.

The four-legged account follows the accounting rule of "what comes must go, and the coming and going must be equal", and has a relatively complete bookkeeping organization.

However, no matter which accounting method was used, before the capital accounting rules were invented by Zhu Yuanzhang, there would be ample room for false accounting.

Of course, even in later generations when the accounting system was extremely perfect, experts in cooking the books could still do it with ease.

At least one friend who had studied at the Tilanqiao Accounting Continuing Education College for ten years once said something shocking to Zhu Gang.

"If you give me another chance to cook the books, I have at least 21 ways to make sure none of you can find out!"

After listening to the other party talk about the 21 methods of falsifying accounts, Zhu Gang instantly agreed with that statement.

“All the good accountants are in jail!”

Of course, in ancient times, falsifying accounts was not as simple as being sent to jail by the boss; being silenced was commonplace.

Therefore, the accountant, like the historian, possesses a special ability to preserve his life.

The former is called "light and dark accounts" and the latter is called "Spring and Autumn style of writing."

The accountant who is responsible for making false accounts will keep a "hidden account" while submitting the "open account" for work.

In this way, even if the accountant is silenced by the boss, this "secret account book" can allow the boss to reunite with him in the underworld one day in the future.

The historian who was in charge of compiling history books would, while submitting the "official history" for his work, also keep a copy of "unofficial history".

In this way, even if all the parties involved are dead, future generations can use "unofficial history" mixed with some truth to make the life stains of the emperor and high-ranking officials exposed.

However, "secret accounts" and "unofficial history" are not easy to find.

So Zhu Gang thought of another way, which was to make the gentry in the four prefectures of Jiangnan who had falsified the accounts suffer the consequences.

But before he could open his mouth, Empress Ma couldn't wait to ask: "If something like defrauding disaster relief reimbursement happens, it will inevitably bring huge losses to the court.

"Tan'er, do you have any idea to help your father solve his problems?"

Zhu Yuanzhang seemed to have thought of something, and said to Zhu Gang with a smile: "It just so happens that I have also thought of a good idea. Why don't we write down what we think in our hearts and see if we have the same ideas?"

As a result, what Zhu Yuanzhang wrote was "capital", while the word on Zhu Gang's palm was only the Arabic numeral "21".

"Our 'capital' here refers to the capital accounting method. What does your symbol mean?"

Facing his father who was not ashamed to ask, Zhu Gang said frankly: "These are numbers invented by ancient Indians, and later spread to Europe by Arabs, so they are also called 'Arabic numerals'.

Let alone the capital accounting method, even if I teach those financial advisors the debit and credit accounting method, there are still 21 ways to falsify the accounts. "

As he spoke, Zhu Gang told Zhu Yuanzhang all the "21 Methods of Falsifying Accounts" that he had learned in later generations.

Zhu Yuanzhang, who was filled with murderous intent, stood up and glared at him, saying, "Tell me honestly, Third Brother, do you know all these tricks of falsifying accounts, or do all the financial advisers know them?"

(End of this chapter)