Using an historical account book as a teaching tool

Abstract

Historical account books from the 18th and 19th centuries are valuable historical documents reflecting the activities of individuals many years ago and shedding light on the way they lived. Such books can be used to teach accounting. From our experience, these books serve to motivate students to learn about the basic aspects of the accounting process. Students are curious about how a book of this nature was prepared, what specific purposes it served, and how it is similar to and different from modern account books. Using these books can also foster interdisciplinary instruction, i.e. accounting and history. Both subject areas relate to an account book. Attempting to explain and understand transactions requires some knowledge of the history of the period in which the book was prepared. In this study, specifics are given on the instructional approach we recommend. While a book of this kind can be used in different ways and degrees in a variety of accounting courses including introductory financial, intermediate, and advanced at the undergraduate and graduate levels, we focus in this case study on its use in introductory financial accounting.

Keywords:

• Account books
• accounting history
• single entry
• instructional approach
• teaching accounting

Acknowledgements

Ryan Stumphauzer, Alex Porter, and Dana Kubilis, former students at John Carroll University assisted in inputting the entire contents of this account book on to computer disks.

Notes

1 As Krooss and Gilbert observe (1972, p. 68): …[A]s the Colonial Period wore on, more and more merchants adopted double entry bookkeeping. But even by the end of the eighteenth century, the practice was not prevalent. Many of the successful and far-sighted merchants kept sophisticated books, but many other successful merchants did not bother. After all, their business was small enough so that they knew where it had been and where it was going. Then too, there were no external forces, such as government and shareholders, to whom a report had to be submitted. Finally, in a period when non-money sales were so common, precise accounting was difficult if not impossible and in any case many merchants could see little to be gained from it.

2 We are indebted to an anonymous reviewer for this point.

3 Biographical information about the merchant, William Caruthers, and many of his customers is available in the books Chronicler of the Cavaliers (1953) by Curtis Davis and Rockbridge County Artists & Artisans (1995) by Barbara Crawford and Royster Lyle.