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Chapter 6 Double Entry Bookkeeping

Hu Changan ignored the excited eyes of the shopkeepers and asked calmly: "I wonder, shopkeepers, what method do you usually use to keep accounts?"

This time, none of the shopkeepers spoke rashly.

What Master Hu did just now really shocked them all.

The shopkeepers suspected that Master Hu had a back-up plan when he asked this question.

After exchanging glances in private, the mature and prudent grocery store manager said cautiously: "Register every income and expenditure in a special account book, and then calculate the balance every day. Is it reasonable for Mr. Hu to do this?"

"It's reasonable, but it's also unreasonable." Hu Changan pretended to smile mysteriously.

"I wonder if you think it is easy to make mistakes in daily registration like this?"

"Of course it's easy to make mistakes, but does Mr. Hu have a better way?" After hearing this, the impatient shopkeeper Song couldn't help but ask in confusion.

Admittedly, shopkeepers know that accounting in this way is prone to errors.

A small restaurant or pub can handle at least dozens or even hundreds of different types of business every day.

All the shopkeepers can do is to record every transaction as carefully as possible, and then count the number of copper coins in stock every day.

Even if something goes wrong, there is nothing you can do about it.

You must know that these accounting methods have been passed down from the grandparents of these shopkeepers, and even their grandparents.

After generations of improvements, the corresponding accounting technology has long since matured.

These shopkeepers really couldn't imagine how Master Hu could improve his accounting techniques.

Hu Changan smiled slightly and continued: "I wonder if you have ever thought about recording a business transaction twice?"

"Remember it twice. Isn't this simply increasing the workload? It should be wrong." All the shopkeepers, Monk Zhang Er, were confused and whispered.

Hu Changan coughed twice, interrupted the conversation between the shopkeepers, and continued: "You might as well think about what a merchant consists of? It is nothing more than assets, liabilities and the rights and interests belonging to the owner."

"Suppose everyone is in charge of a restaurant now."

"Assets are the properties owned by the restaurant, such as drinks, tables, chairs and benches, etc., they are all assets of the restaurant."

"As for liabilities, they are money owed to the restaurant by others."

"The rights and interests belonging to the main family are the copper coins that should be handed over to the Hu family."

"The increase in an asset will inevitably lead to an increase in liabilities or owner's equity."

"For example, if you receive wine money from a guest, the assets and equity of the host family will increase."

"Receiving wine money on credit from a customer increases the assets and liabilities of the restaurant."

"By analogy, all the business in the restaurant can be represented by these three elements."

"If the accounting is correct, the number of assets in the restaurant will always be equal to the number of liabilities plus the owner's equity."

"Once the numbers are not equal, it means that the shopkeepers have made mistakes in their accounting and can correct them in time."

"Moreover, this method can not only tell whether there are any mistakes in the accounting, but also how many assets and liabilities there are in the restaurant at any time."

"Different merchants use the same accounting method, which makes it easier for me, Master, to check the accounts at any time and calculate profits."

"This method is called double-entry accounting. Here are the main rules about double-entry accounting that I compiled before. You can circulate them to each other and take a look."

After that, Hu Changan ordered He to take out a stack of rice paper that had been prepared and pass it around to the shopkeepers.

Having said so many words in one breath, even with the blessing of the system, Hu Changan also felt quite strenuous. There was a dull pain in his chest, and he almost fell back on the bed unable to hold himself up.

But when he thought about gaining another wave of adoration points, Hu Changan suddenly became more energetic.

With worship points, you can buy soap and perfume making methods.

When the time comes to sell it in your own grocery store and restaurant, the fans will definitely come in.

The shopkeepers circulated the theory of double-entry accounting written by Hu Chang'an and couldn't help but be impressed.

I didn't expect that an ordinary accounting method could be designed so exquisitely.

In this way, you no longer have to worry about making mistakes or recording the wrong accounts while busy!

This is simply a great progress in the academic world!

[Ding, Shopkeeper Song’s admiration for you is worth 3]

[Ding, Shopkeeper Wang’s admiration for you is worth 3]

[Ding, Shopkeeper Liu’s admiration for you is worth 3]

...

Among them, some shopkeepers with evil intentions are also secretly frustrated.

Originally, all I wanted to do was build a good relationship with the boss and give him some gifts, but everyone just turned a blind eye.

Anyway, if you remember your accounts, others may not be able to understand them. If you are greedy, no one will be able to tell, as long as it is not excessive.

It's good now. Everyone uses the same accounting method. It's a new accounting method invented by the master's young master. It's obvious whether he is greedy or not.

My oil and water have been reduced a lot.

...

Hu Chang'an didn't know the little Jiujiu in the shopkeepers' hearts. Listening to the crisp system sound, Hu Changan felt so happy, and he was one step closer to success!

Seeing that the shopkeepers had finished reading, Hu Changan waved his hand and motioned for the shopkeepers to go back to each house to find their respective mothers. By the way, he ordered Dianhe to urge all the shopkeepers of the Hu family to use this accounting method as soon as possible.

This is not only to earn credit points, but also to pave the way for Hu Changan's future business empire.

...

In the evening, Hu Weiyong, covered with sunset glow, stepped into the gate of Hu Mansion.

Entering the house, there is a sumptuous dinner as usual.

Although Zhu Yuanzhang vigorously advocated frugality after he ascended the throne, as the first prime minister of the dynasty, Hu Weiyong's dining table was still very rich.

Roast goose, stir-fried mutton, pan-fried fish...you name it.

The presentation of the food is also extremely exquisite, and even the chopsticks are high-end ivory chopsticks.

After a busy day, Hu Weiyong enjoyed the delicious food leisurely, which was very satisfying.

While he was eating, his wife Liu suddenly spoke and applied eye drops to Hu Changan: "Master, the young master's injury should be almost healed today. He also ordered someone to summon the shopkeepers of the business to the house, as if to express his gratitude to Hu Changan.

What knowledge do they teach?"

Hu Changan was born to the concubine Wang, and as the head wife Liu naturally disliked Hu Changan in every possible way. It is hard to say that Hu Changan's poor learning did not have Liu's share of the credit.

No, before Hu Changan recovered from his injury, Mrs. Liu started acting like a monster.

"What! Calling businessmen to impart knowledge?" After hearing this, Hu Weiyong became furious.

Scholars, farmers, industry and commerce, business is a lowly industry. This is not just a saying, but an iron law deeply imprinted in the hearts of every Ming Dynasty person.

Hu Weiyong had originally been a farmer for generations. He finally risked his head to follow Zhu Yuanzhang in troubled times and obtained his scholar status. Naturally, he cherished it very much.

On weekdays, as the prime minister of the dynasty and the head of the noble clan, Hu Weiyong would not even listen to the housekeeper's report on the business's harvest. Who would have thought that his son would steal his home.

The merchants in the parish are illiterate and are simply willing to be humbled.

Hu Weiyong was about to have a fit and call his son over to lecture him, but then he turned around and remembered that his son was lying on the bed with a broken bone and could not get off the ground.

Hu Weiyong had no choice but to finish his dinner hastily, waved his sleeves, and headed towards the east wing where Hu Changan was.

This chapter has been completed!
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