History of Accounting

Prof. Anjana S

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Anjana S

HISTRORICAL TRACE OF ACCOUNTING Accounting is aptly called as the LANGUAGE OF BUSINESS.

The basic function of any language is to serve as a means of communication.

In this context, the purpose of accounting is to communicate or report the results of business operations and its various aspects.
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EVOLUTION OF ACCOUNTING
Accounting is as old as money itself. Accounting & Civilization. Arthshasthra -- Kautilya
Vishnugupta Chanakya Kautilya, a 4th century B.C economist (under the King Chandragupta Maurya). Kautilya wrote The Arthashastra, the science of wealth and welfare . The Arthashastra contains 150 chapters, which are classified by topic in 15 books. It consists of three reasonably well developed parts: (i) national security issues including a foreign policy, (ii) administration of justice including crime and punishment issues, and (iii) policies related to economic development, taxation, labor management and financial management.
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Bollae and tokens circa 3300 BC

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Anjana S

Picture in the Tomb of Chnemhotep, pharaoh of Egypt circa 1950 BC. The ancient Egyptian scribe (seated on the left) prepared his accounts on papyrus with a calamus

Papyrus is a thick paper-like material produced from the pith of the papyrus plant that was once abundant in the Nile Delta of Egypt.

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Writing on Papyrus with a Calamus

Anjana S

Papyrus Plant
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Part of Confucius responsibilities as government employee accounting.(500 BC).

job a was

A Chinese thinker and social philosopher, whose teachings and philosophy have deeply influenced Chinese, Korean, Japanese, Taiwanese and Vietnamese thought and life. His philosophy emphasized personal and governmental morality, correctness of social relationships, justice and sincerity.

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Anjana S

Marble-tablet: Account of Disbursements of the Athenian State c. 418-415 BC

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Father of Modern Accounting Fratter Luca Bartolomes Pacioli was born during 1445 in Sansepolcro, Tuscany, Italy.

Da Vinci (Close Friend of Pacioli)

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Anjana S

EVOLUTION OF ACCOUNTING
Fra Luca Pacioli was an Italian Mathematician, Scholar and

Philosopher.
He published (1494) his most important work, Summa De

Arithemitica, Geometrica, Proportioni et Proportionalita,

(Review of Arithmetic, Geometry, Ratio and Proportion) which contained,
two chapters, a detailed description of accounting as practiced in that age. Pope X appointed Pacioli as a Professor of Mathematics in 1514 in Rome.
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EVOLUTION OF ACCOUNTING
Other Contributors -- Prof. Simon Stevin and Prof. Arthur Cayley.
Arthur Cayley was a Professor of Mathematics at Cambridge University in England and wrote The principles of double

entry system.
First professional organization of accountants was founded in Venice in 1581. Profit and Loss Account -- Balancing at the end of every

year .
Balance Sheet -- drawn up at regular intervals. Industrial Revolution & Accountant
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8000 BC 3100 BC 0

Jerry of Jericho

HISTORY OF ACCOUNTING

First used "tokens" temple's wealth

to

accurately

count

the

Marion the Sumerian Jerome of Rome

Invented Cuneiform writing to determine the king's wealth & tribute payments Rich Romans kept financial records in memo form and on ledgers. Scribes kept detailed financial records of the Empire Florentine merchant, developed the first known financial records that included all major components of double entry bookkeeping Publication of Summa, which included the first full description of the Italian method of double entry bookkeeping Industrial Revolution entrepreneur that developed innovative cost accounting records following a severe recession Early founder of a Big Six firm, important to the development of the British accounting profession

1299 AD

Amatino Manucci

1494

Luca Pacioli

1772

Josiah Wedgwood

1854

William Cooper

1920
8/31/2012

Donaldson Brown
31-Aug-12

GM CFO developed the "modern" cost accounting system used by industrial giants to control vast 11 Anjana S 11 operations

Marion the Sumerian Josiah Wedgwood

Amatino Manucci

Arthur Cayley

Simon Stevin

William Cooper

Donaldson Brown

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Anjana S

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