For those of you familiar with accounting ,the double entry book keeping needs no explanation. For others it is simply the method of recording a transaction in 2 books one from the view of creditor andother from the view of debtor. Bankers will teach the new entrants that 'every debit has a credit for equal amount' or' there is no credit without debit'.
Now coming to the double entry book keeping practised by my wife. I have given her a accounts note book to record all family expenses. I periodically reimburse her expenses noted in the book.In the beginning of the month I also pay in advance to take care of routine expenss like groceries , milk etc. The debits (expenses side) are totalled every page and also the credits(amount paid to her) The debit in excess of credit is reimbursed to her. The idea is that whatever money spent by her is to be paid to her.
She has various methods of double entry.
Method 1: She would pay some expenses with the money taken out from my purse and not enter the credit side. So that amount will be paid to her for a 2nd time.
Mehtod 2: She will spend from her purse, enter in the note book. After some days she will 'remember' the expense and ask me to enter it in the note book. So a single expense is entered twice and also reimbursed twice.
Mthod 3: She may take a Rs 20 note and spend spend some amount say Rs 10.She will 'forget' the balance amount received from the shop keeperand write in the note book items such and such etc Rs 20 as she would remeber the Rs 20 and not the balnce received.
Method 4: She would from time to time verify her savings and report that there is a short fall or some amount missing and obviously she has omitted to record some family expenses and get reimbursement for the short amount.
Method 5: She would say 'your birth day falls next monday and you should new set of dress. I want to buy you a new set of dress from my money'. I would say' no, no i dont need any new dress. i should buy you new clothes and not you to me as i am only earning'. She would say 'you always say like this. i have savings and i will buy you a set new dress. only you take me to the bazaar.We would go to the bazaar and she will pay for whatever is bought.After a week i will find an entry in the accounts note book:' Bawa's birth day dress' Rs **** rounded of to the next hundred!
Method 6: She would report periodically that she has saved money by reducing expenses.She would say' instead buying a costly saree for Rs 1000 i have purchased 2 sarees for Rs 500 each. so i have saved Rs 1000 which you pay me additionally and i will keep it as savings for our children'.thus she will get Rs 2000 for spending Rs 1000.
Because of her efficient accounting most of the times she has more money with her than i have with me and i have to borrow from her paying interest with out interest!
Now coming to the double entry book keeping practised by my wife. I have given her a accounts note book to record all family expenses. I periodically reimburse her expenses noted in the book.In the beginning of the month I also pay in advance to take care of routine expenss like groceries , milk etc. The debits (expenses side) are totalled every page and also the credits(amount paid to her) The debit in excess of credit is reimbursed to her. The idea is that whatever money spent by her is to be paid to her.
She has various methods of double entry.
Method 1: She would pay some expenses with the money taken out from my purse and not enter the credit side. So that amount will be paid to her for a 2nd time.
Mehtod 2: She will spend from her purse, enter in the note book. After some days she will 'remember' the expense and ask me to enter it in the note book. So a single expense is entered twice and also reimbursed twice.
Mthod 3: She may take a Rs 20 note and spend spend some amount say Rs 10.She will 'forget' the balance amount received from the shop keeperand write in the note book items such and such etc Rs 20 as she would remeber the Rs 20 and not the balnce received.
Method 4: She would from time to time verify her savings and report that there is a short fall or some amount missing and obviously she has omitted to record some family expenses and get reimbursement for the short amount.
Method 5: She would say 'your birth day falls next monday and you should new set of dress. I want to buy you a new set of dress from my money'. I would say' no, no i dont need any new dress. i should buy you new clothes and not you to me as i am only earning'. She would say 'you always say like this. i have savings and i will buy you a set new dress. only you take me to the bazaar.We would go to the bazaar and she will pay for whatever is bought.After a week i will find an entry in the accounts note book:' Bawa's birth day dress' Rs **** rounded of to the next hundred!
Method 6: She would report periodically that she has saved money by reducing expenses.She would say' instead buying a costly saree for Rs 1000 i have purchased 2 sarees for Rs 500 each. so i have saved Rs 1000 which you pay me additionally and i will keep it as savings for our children'.thus she will get Rs 2000 for spending Rs 1000.
Because of her efficient accounting most of the times she has more money with her than i have with me and i have to borrow from her paying interest with out interest!
