History concepts and overview

Accounting History

Accounting texts were written in the mid of the third century AD by the Greco Roman's. By the thirteenth century various methods for accounting started to appear such as receipts and payments and double entry bookkeeping. Different ways for calculations were introduced as well. By eighteenth century accountants were hired in Scotland. Not only different organizations adopted this method but by the nineteenth century government also adopted different methods of accounting.

Accounting History

Accounting was basically written by the Greeks mostly on papyrus. Almost the accounting texts date are in written form which was happened to be in the mid of the third century AD. These accounts were made to run a huge empire which was known as Appianus estate. Early accounts are not source of information but also have an historical importance in them. The accounting systems of the Appianus estate was presently known from the Greco Roman world and was also used as to measure their profit in each units of their estate. In Greek and Roman accounting, before thirteenth century ancient accounts are refer in their forms and contents. Most of the proofs for double entry were hardly found but many of the accounts were in the form of groups more like chronological narratives with receipts and payments init, also known as double entry accounts. These accounts were kept to track the movement in various assets plus for the receipts and payments of money such as grain accounts but were recorded in physical terms. Manorial account appeared during the first decade of the thirteenth century, when the method of double entry was being adopted. Manorial accounts were used to show the state an account between the landlord and his official for the purpose of how much was owing to one another once the transaction had been allowed for. Although it was not in the form of written account as their is an indication that in the mid of thirteenth century it was not usual to set down and write details in the form of accounts, local officials would simply presented and audited by their own words and for the calculations and brief notes tally sticks were used. Canterbury Cathedral Priory (1207-8) was the first estate from which manorial accounts was appeared. Manorial accounts were mostly used to cover corn and cash as well. From thirteenth century from Tuscany, modern accounting takes its rise. From this period the earliest business accounts came in debit and credit form. It was Tuscans who evolved the double entry system which is now days used as the basis of well ordered accounting system.

Early accounting shows that how human being used to cope up with various kinds of conditions as compared to the modern days, it's totally opposite. In past, people used to keep their accounts when paper was still unknown and was very expensive as the coins were rare and men were not educated. They used two devices to record their accounts, one was tallies on which they used to make small cuts to write the numbers and then they used abacus in the form of checker board to calculate. Although tally suggests different things such as it can be a record of numbers written by chalks or sticks on a piece of a board or it can be the division of two different objects into small bits to maintain them as a proof. However, bits of wood pieces and skin of sheep's and calves were also used as tallies. Wood was used more for recording, ink and seals were used to write accounts on top of a piece of wood. It was used mostly by everyone as it was inexpensive plus it was very easy to write on top of it. Marked stick also played many roles, also known as counting tally. But in fourteenth century, there was an argument for a decline in tallies and to increase the use of paper which was found in England. Still this was an expensive import, in a result tally remained there for many years along for efficient calculation's an abacus was used.

By 1700, few professional accountants were found in Scotland for the Italian method of book keeping. But by 1800 there were many professional accountants who were operating in the major Scottish towns as the knowledge of accounting became even more common in the business community. The notable accountants were used to write clear exposition of the Italian method of book keeping and showed many techniques as well. In 1768, work progressed even more by the source of applications and funds. Transactions on credit were curtailed as the new receipts were made and payments were made from the Royal Bank of Scotland. New system for corporate and cash accounting were also emerged. Historical accounting has been focused on manorial accounting which was appeared in the middle ages and double entry bookkeeping which was there for over 700 years. It was not only adopted for various purposes but also for the government in different localities or countries. At the end of the eighteenth century, accounting was represented by over fifteen thousand separate organizations. They used to collect money, pay money, borrowed it, spent it and used to produce accounts which were not common until nineteenth century. In nineteenth century, government accounting system went through a serious strain. Mechanisms of the markets were familiar and disrupted at the time because of an unexpected war for the expansion of government in trading and manufacturing. Accountants of the government not only had accounts to Parliament for taxpayer's money but also to lessen the unfamiliar tasks including fixing prices and profits efficiency. Thus, by 1917 accounting system was on verge to collapse. Economist's referred this era as the most horrifying state of the accountancy. The government in 1921 was accused because of their wasteful and non-business methods but was solved after few years.