History of Accounting

In: Business and Management

Submitted By MyNguyen1910
Words 746
Pages 3
14th Century
The history of accounting dates back to ancient civilisations, however the birth of double-entry bookkeeping in the 14th century is seen as being the beginning of the modern accounting period.

The Renaissance period in Italy (14th to 16th century) saw many major developments in accounting practice. At this time, Arabic numerals were first used to keep records of business transactions in place of Roman numerals, and record keeping developed on a large scale. Bookkeeping had to develop to keep track of the assets and profits of many distinct trading ventures at different stages of completion.

In 1657, the company ruled that stock was to be valued, and four years later the governor of the company stated that “future distributions would consist of the profits earned (dividends) and not “divisions” as in the past”.

Many guides for investors and accountants were written during this development period. Examples include Stock Exchange Accounts; with an appendix of forms which details stock exchange bookkeeping, Haight and Freese Co’s Guide to Investors which lists the stock prices for various companies between 1890-1900

18th Century
Josiah Wedgwood, the founder of famous pottery manufacturer Wedgwood is considered by many to be a pioneer in cost accountancy. After examining business accounts, Josiah Wedgwood discovered that his head clerk had been embezzling from the company

19th Century
The early evolution of accounting was dominated by advances in bookkeeping practice. There are numerous books chronicling this progression. The century following the industrial revolution saw great progress from the “method of systematically recording [financial] exchanges into a means of giving business management an effective control over its affairs”.
1816 - John Croaker, a bank clerk from England, was caught and charged with embezzling from the bank…...

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