Elements of Accountancy · Ch 12 — Introduction of Deshi Nama System
Comparison of Deshi Nama with the Double Entry (English) System
Comparison of Deshi Nama with the Double Entry (English) System
The Deshi Nama system and the modern double-entry (English) system are both aimed at recording business dealings in a way that keeps a full account of cash and of the amounts owed to and by the business, and both rest on the idea that every dealing has two sides. Because of this shared logic, many merchants and scholars treat Deshi Nama as an indigenous form of double-sided bookkeeping.
But there are real and important differences in how the two systems are actually run. The most striking is the placement of debit and credit: what the English system puts on the left, Deshi Nama puts on the right. The table below sets out the main similarities and differences.
| Basis of comparison | Deshi Nama system | Double Entry (English) system |
|---|---|---|
| Origin | Indigenous Indian system, used by merchants of Gujarat, Rajasthan and elsewhere | Developed in Europe and now the internationally standard method |
| Debit and credit sides | Left side = Jama (credit); right side = Udhar (debit) | Left side = debit; right side = credit (the reverse of Deshi Nama) |
| Books used | Rojmel, Bethomel, Khatavahi, Aankadavahi, Aavro, Peta Nondh | Journal, subsidiary books, ledger, cash book, trial balance |
| Language and format | Regional language on plain string-tied books, no printed columns | Usually printed, columnar, ruled books in a standard format |
| Accounting year | Traditionally Vikram Samvat (Kartak to Aso) | Financial year (April to March in India) |
| Ruling of the account | Two-sided but with reversed placement | Two-sided in the standard debit-left, credit-right ruling |
| Standardisation | Varies by trader and community; not uniform | Uniform, standardised rules followed worldwide |
The internationally standard method of bookkeeping, developed in Europe, in which every transaction is recorded with a debit and a credit — debit on the l …