History of Accounting

The history of accounting begins since humans recognize the count of money and use notes. In the twentieth century the calculation of profit and loss had been made by Genoese traders by calculating the existing treasures at the end of a voyage and compared at the time of their departure

The milestones of accounting history began in 1494 when Lucas Paciolo {Lukas of Burgos] published a book of exact science entitled "Suma de Arilhmalica, Proportioni et Proportionaiita". In the book there is a chapter, entitled 'Tractatus de Computis et Scriptorio ". Which contains double book keeping (book keeping) methods.

History of Accounting from century to century

At the end of the XV century, along with the decline of Roman influence, the center of commerce shifted to Spain, Portugal and the Netherlands. As a result, the Roman accounting system has also migrated and is used in those countries. Since then the calculation of profit and loss began to be made on an annual basis which then encourages the development of the preparation of the balance sheet on a regular basis at the end of a certain period.

In the nineteenth century the industrial revolution in Europe encouraged the development of cost accounting and the concept of depreciation. In 1930, the New York Slock Exchange and the American Institute of Certified Public Accountants discussed and established accounting principles for companies whose shares are listed on the stock exchange.