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The Romance of Double-Entry Bookkeeping


Feature Column Archive



6. Hazards of Fortune

In late August and September of 1540, Alvise's fortunes have some ups and downs due to chance. Manzoni shows us how these fit into the double-entry scheme.

On August 25 Alvise buys 20 tickets in the Small Lottery, numbers 436 to 455, at 12 grossi the ticket. Total 10 ducati.

Ticket 447, which he had purchased in Faustina's name, is drawn. He wins 100 ducati (minus a 3 ducati winner's fee) and 10 tickets for the Great Lottery, numbered 769 to 778, worth 2 ducati each.

Alvise combines the two lottery accounts by transfering the balance from the Small Lottery to the Great:

His good luck continues: ticket 778 comes up, and he wins a 22-carat gold chain and cup, of weight 3 marche and 6 ounces, which at 72 ducati the marcha (one marcha is 8 ounces) is worth 270 ducati; and an additional 130 ducati. The winners fee comes to 12 ducati.

He finally balances out the lottery account by transferring his profit to Profit & Loss

Here are the corresponging Ledger entries. Note that both of these accounts are balanced.


                                      SMALL LOTTERY
171. 20 tickets @ g.12   l.1  s.-  g.-  p.- | 172. ticket #477       l.9  s.14 g.-  p.-
174. balance to                             | 173. from Great Lottery 
     Great Lottery       l.10 s.14 g.-  p.- |      10 tickets @ d.2  l.2  s.-  g.-  p.-

                                      GREAT LOTTERY
173. 10 tickets from                        | 174. Balance from
     Small Lottery       l.2  s.-  g.-  p.- |      Small Lottery     l.10 s.14 g.-  p.-
177. to Profit & Loss    l.47 s.10 g.-  p.- | 175. Gold at hand      l.27 s.-  g.-  p.-
                                            | 176. Cash prize d.130        
                                            |      less fee          l.11 s.16 g.-  p.-                            



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