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Accounting is as old as civilization. It was initiated in Babylonia and Egypt around 4000. Clay tablets were used to record the transactions. Egyptians used accounting to record the safekeeping of g old and valuable treasures. Day-wise reports were sent to wizards by those in charge and month-wise reports to kings. In Greece, accounts were used to apportion the revenue received maintaining total receipts/payment and the balance of government financial transactions. Coined money was introduced in about 600 BC. Romans used memorandum or day book to record receipts and payments and posted to ledgers or cash books every month (700 BC-400 AD). China used sophisticated government accounts during the Chao dynasty . (1122-256 BC). ORIGIN OF ACCOUNTING Father oF accounting Luca Pacioli is often considered the "Father of Accounting.“ He was an Italian mathematician and Franciscan friar . He l ived during the Renaissance period. He a uthored the book "Summa de Arithmetica, Geometria, Proportioni et Proportionalita" in 1494. Pacioli i ncluded a section on double-entry bookkeeping in his book. He acknowledged as a key figure in the development of accounting. Fra Lucca Bartolomeo de Pacioli DOUBLE-ENTRY Double entry book keeping was developed in 14 th century in Italy. The 7 th “key ingredients” which led to its creation as described by A.C Littleton are: Power to change ownership. Employing wealth productivity. Widespread interchange of goods. Present use of future goods. Recording due to the limits of human brain. Money as the common denominator of exchange. Arithmetic-means of computing. DOUBLE-ENTRY BOOKKEEPING Basic Principle: Every financial transaction affects at least two accounts. Accounts: Represent specific categories like assets, liabilities, equity, income, or expenses. Debits and Credits: Debit (DR): Increases assets and expenses, decreases liabilities and income. Credit (CR): Increases liabilities and income, decreases assets and expenses. Dual Aspect: Maintains the accounting equation (Assets = Liabilities + Equity). Example: Cash received: Debit cash (asset), credit revenue or sales. Cash paid for expenses: Credit cash (decrease), debit expense. Trial Balance: Total debits must equal total credits, ensuring balance. Accuracy and Error Detection: Identifies errors by detecting imbalances in accounts. Historical Development: Documented by Luca Pacioli in 1494. Widespread Adoption: Standard method globally for accurate financial recording. Purpose: Facilitates financial analysis, decision-making, and compliance with accounting standards. INDIAN ACCOUNTS OR ARTHASHASTRA Authorship: Traditionally attributed to Chanakya in the 4th century BCE. Historical Context: Written during the Mauryan Empire, reflecting political and economic conditions of ancient India. Content: Comprehensive treatise covering governance, economics, taxation, law, diplomacy, military strategy, and espionage. Philosophical Basis: Pragmatic and associated with realist political thought, emphasizing power, order, and state well-being. Rediscovery: Lost for centuries, rediscovered in the early 20th century by scholars like R. Shamasastry . Influence: Significant impact on political and economic thought in India, studied by scholars and policymakers. Relevance: While rooted in ancient India, its principles continue to be considered timeless and relevant in governance, economics, and strategy. References Origin Of Accounting- https://www.investopedia.com/articles/08/accounting-history.asp FATHER OF ACCOUNTING- TS GRAWAL BOOK OF ACCOUNTING. DOUBLE-ENTRY – https://chat.openai.com/c/a92b3874-f1eb-4dd5-b216-f061c8d1e293 ARTHASHASTRA – Slideshare.net