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Planet Money

Summer School 3: Accounting and The Last Supper

Jul 26, 2023
34:30

Podcast summary created with Snipd AI

Quick takeaways

  • Accounting originated in Venice in the late 1400s, with the development of double-entry bookkeeping by Luca Patroley, a mathematician and monk.
  • The invention of the electronic spreadsheet, starting with VisiCalc, revolutionized accounting and business operations, enabling quick and accurate calculations and modeling.

Deep dives

The Birth of Accounting: Luca Patroley and Double-Entry Bookkeeping

The episode explores the historical origins of accounting in Venice in the late 1400s, where double-entry bookkeeping was developed. This revolutionary method involved separating different aspects of a business into categories on a big sheet of paper – assets, liabilities, and equity. Luca Patroley, a mathematician and monk, played a significant role by documenting this method in his book, buried within an encyclopedia of math. The book became popular and spread across the world, becoming the basis of modern accounting by 1900.

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