Accounting Since Ages!
The American Institute of Certified Public Accountant, describes Financial Accounting as:
“The art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which, in part at least of a financial character and interpreting the results thereof.”
But, did you know that the history of accounting goes back to 1000 years from now? Are you curious to know more? If yes, then read on and enlighten yourself.
The Ancient Accountants
The ancient accountants came from countries such as Greece, Mesopotamia, Egypt and Rome. The bookkeepers of Egypt kept accurate written records of the inventory of goods in the royal storehouses. If by any chance the information collected was wrong, a severe penalty was imposed on the bookkeeper.
5,300 years-old bone labels inscribed with marks and attached to bags of oil and linen in the Egyptian Tomb of King Scorpion I were found by a German archeologist, Dr. Gunter Dreyer. The bone labels had details of the inventory owners, amounts, and suppliers. These labels were then referred as ancient origin of the counting systems that eventually developed into the modern method of bookkeeping.
The Mesopotamians kept accounts as clay tablets. The Greeks adopted Phoenician writing system and the invention of Greek alphabets facilitated the record-keeping system in Greece. Bookkeeping in the ancient Rome was no different. Rome had an advanced commerce system that helped it become the most powerful civilization.
Accounting In India
When these countries saw the development and need for accounting, how could India stay behind? Accounting in India came into existence through ’s book named “Arthashastra”. Chanakya was the royal advisor for the Mauryan Empire. His intelligence was spoken about in every kingdom. The book “Arthashastra” gives the reader a detailed knowledge of proper account keeping and the methods involved in checking accounts.
What we know of today’s bookkeepingis possible because of these famous figures of accounting.