History of Accounting
By abcaccounts, 23rd Jun 2012 | Follow this author
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The Double entry system was not invented br Fra Luca Pacioli rather he poularised the system with the book "Summa" he published and this made him the father of accounting since the book “Summa de Arithmetica, Geometria,Proportinoni et Proportionalita” was the First and Most popular accounting textbook then and his description of accounting will still be used in the next 500 year without being outdated.
History of Accounting
Accounting has been referred to as the “oldest profession” by many scholars. The history of accounting can be traced back to the prehistoric period where people at that time account for their foods, crops and herds, even though they were using primitive accounting methods then. The advent of trade established the concept of value and Monetary system was developed. As time passed by,Government’s found accounting necessary because they needed adequate records of their taxes.
Accounting came to new heights during the Italian renaissance when the medieval Europe moved to a monetary economy in the 13th century. Fra Luca Pacioli did not invent double entry, it was a among the merchant in Venice that double entry started and was practiced. During this time a famous book titled “Summa de Arithmetica, Geometria,Proportinoni et Proportionalita” written by Fra Luca Pacioli was published. This book popularised the double entry system, this made Fra Luca Pacioli the father of accounting .
The principle of double entry states that for each transaction there must be a credit and debit entry. The word ‘debit’ is a latin word which means “he owes” and ‘credit’ means “he trusts”. The book “Summa” became the First Accounting textbook. The book “Summa” became the First Accounting textbook.
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