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    • Benefits
    • 0. Introduction
    • 1. Funding Butterfly
    • 2. BaSIS Framework
    • 3. Classic Tx - v6.0X >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
      • Tx16. Pay supplier
    • 3. Classic Tx PizzaBox >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
    • 4. Summary learnings
    • 5. Business narrative
    • 6. Extenders
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0. Introduction to accounting

We started the lesson numbering with 'zero' because that's where we start our journey with you - zero presumed knowledge - a blank page/screen. We recommend you start with this lesson whether you have had any accounting-101 before or not.
​
Whether you are using the v6.0X approach or the Pizza Box approach, this Bootcamp is for you. The only minor difference is the Classic Transactions activity (Lesson 3). Select the one you need from the menu above.
​

Background
​In 1494, the first known book on modern (double-entry) accounting was published by Luca Pacioli (pronounced ‘puh-cho-lee’). Pacioli is known as the father of accounting. From his base in Venice, Italy (the financial ‘Wall Street’ of its time), in a paper called Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Everything About Arithmetic, Geometry and Proportions) he explained bookkeeping. He described the method used by Indian and Arab traders that had made its way into Europe. The method brought with it the Indian/Arab (they both claim it) numeral system of 0-9 that replaced Roman numerals and made accounting possible.

The first accounting book actually was one of five sections in Pacioli's paper, and served as the world's only accounting textbook until well into the 16th century. Unlike most books of the time, which were published in Latin and thereby inaccessible for much of the population, Pacioli's book was published in Italian so that many more people could read it, and it could fulfill its purpose as a text book. As a testimony to his brilliance, most of the principles he described are still used today.

Pacioli was a mathematician, friar and friend of Leonardo da Vinci, the famous painter of the Mona Lisa. As a painter, da Vinci was interested in perspective and influenced Pacioli. Point of view is critical in accounting. Bookkeeping has historically used sides (left and right) to describe elements and movement.

In the 1990s desktop color printing meant that color and graphics could augment sides. Color Accounting uses a diagram called the BaSIS Framework™ to make accounting intuitive.

When and why was it invented?

Accounting is more about 'accountability' than 'counting'.

Modern accounting was invented so that people with capital (essentially assets, often money) could have a rigorous way to calculate whether their capital was increasing (profits), or decreasing (losses), as a result of their business activities. As the separation between the 'provider of the capital' (originally the owner and later also financiers like banks) and the 'manager of the capital' (those employed in the business to make a profit for the owners) continued to grow with the complexity of business structures, the need for accountability became even greater. This, and the associated need of useful information for decision making (by both the managers and also the owners), lead to the need for a single system that all would use: double-entry accounting.
Signor Luca Pacioli (Puh-Cho-Lee), lived from 1446-1517 in Venice, in what is today known as Italy. He is often referred to as The Father (or Patron) of Accounting and Bookkeeping. Not because he invented accounting, which he didn't, but because as far as we know he wrote the first detailed and complete 'text book' on the practice. And, even though it was all in black and white, when published this book allowed the practice to be taught to students in a pure form - a form that is still being taught today!
Video 0.1
In this short video, Peter Frampton (one of the two co-founders of Color Accounting and Accounting Boot Camp) explains the genesis of accounting. [1.05 mins]
​
Video 0.2
In this video, Mark Robilliard (the other co-founder of Color Accounting and Accounting Boot Camp) demonstrates why accounting was created in the first place. This activity was filmed during an actual corporate workshop in Malaysia in 2018. [5.49 mins]

Video 0.3
In this video, Mark Robilliard offers an alternative approach on the whiteboard to demonstrating the birth of modern accounting.
​[3.32 mins]

What is accounting?

In this video, Peter Frampton explores the topic, "What Is Accounting?"

Note: in the video it refers to Income as one of the key elements of the general ledger. In the US, use Revenue for this element.

Video 0.4

Extenders - additional resources

Jane Gleeson-White, the author of "Double Entry: How the merchants of Venice shaped the modern world - and how their invention could make or break the planet" discusses the origins of accounting and its impact on the world. The first video goes for 5:39 minutes and, for a more detailed overview, the second video below "Monks, Maths & Magic" goes for 19:31 minutes (and contains the dubious joke: "Why did the accountant cross the road?").

Video 0.5

Video 0.6

Video 0.7 . Sheldon of the Big Bang Theory helps explain why accountants are to be revered. A tongue-in-cheek view - [1:52]

Video 0.8 . Frogs and Flies. A quirky little video inspired by 7 year olds who totally got the concept of 'color math' [1:00]
(Note: in late 2019 we switched yellow for orange)
​This was first created in about 2010 as a 'paper and pen' game for 7 year old students at an elementary school for a 'bring your father to school day and tell us what he does'! It was also to see if the increase/decrease concept using colors would be as intuitive for children as it had been for adults, and this proved to be true.

​The video refers to green and yellow. In 2019 yellow was switched for orange. You may still see references to yellow in various places throughout the Color Accounting ecosystem as we make the switch.

FUN FACT: The manuscript that Pacioli published in 1494, Summa de arithmetica, geometria. Proportioni et proportionalita is still available today, more as an historic curiousity than required reading! Parts of the original Italian have been translated into English and your teacher can provide you with a copy if you are interested.  Beware though, it is 196 pages.
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  • Home
  • Color-Accounting-Bootcamp
    • Benefits
    • 0. Introduction
    • 1. Funding Butterfly
    • 2. BaSIS Framework
    • 3. Classic Tx - v6.0X >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
      • Tx16. Pay supplier
    • 3. Classic Tx PizzaBox >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
    • 4. Summary learnings
    • 5. Business narrative
    • 6. Extenders
  • Virtual Learning
  • Teachers
  • Store
  • More
    • SeanStuff
    • Color Accounting
    • Curriculum Approach >
      • Menu page
    • Support
    • Gallery
    • LMS plans
    • Contact Us
    • Newsletter
    • Legal notices >
      • IP Rights