History of accounting
summarizing, in a significant manner
Ancient Egyptians kept record of all
the good kept in the royal storehouses.
Scribes of Mesopotamia- also kept
business record on clay tables.
Ancient Greek- banker accounts books
show that they changed and loaned
money
Ancient Romans- accounts were kept
the heads of families
Bookkeeping- first appeared in the
1500’s and meant the work of keeping
account book.
Lucio Pacioli- is the FATHER OF
ACCOUNTING in 4th century Italy.
-he describes double-entry bookkeeping
and other business related concepts in
his book DE CAMPITIS EL
SCRIPTURES of [recording and
writings]
In 1854- Scotland Queen Victoria
granted a royal charter to the institute of
Accounting in Glasgow creating the
profession of charted accounts (CA) this
was the start of the modern account
profession
The chartered accountants from
Scotland and Britain came to the US to
audit British Investment.
WHAT IS ACCOUNTING?
The Committee on Terminology of
the American Institute of Certified
Public Accountant (AICPA)-defined
accounting as the art of record, classify,
and In term of money, transaction and
events which part, at In term of money,
transaction and events, which are in
part, at least, of Financial character and
interpreting the result theory
Accounting is the language of business
Accounting is also a science
Accounting is a service Activity
It is provide Quantitative Information
primarily financial in nature, about
economics entities that is intended to be
useful in marketing economic decision
FOUR PHASES OF ACCOUNTING
 Recording-this is technically
called bookkeeping.
 Journal
Bookkeeping and accounting as one
and the same.
Bookkeeping – is only a part of
accounting –the recording phases
 Classifying- items are sorted
and grouped. Similar items are
classified under the same name.
 ledger
They may classified
As asset, liabilities account, capital
account, income account, expense
account
  Summarizing- data record are
summarizer through financial
statement.
 Trial balance
 Income statement
 Interpreting –due to the
technically of account report. The
accountant’s interpretation of the
financial statement is needed in
this case analysis are submitted
together with financial statement
EMPLOYEES- “are we receiving fair
remuneration?
Employees are interested in
information to enable them to
assess the ability
GOVERNMENT-is this firm reporting
the correct amount of income??
The government need accounting
information to regulate the firm’s
activate and determinate the basis
for taxation policies

WHY NEED ACCOUNTING

Every day transaction cannot all be

retained in our memory, to avoid
these transactions are other
important events should be recorded

DIRECT USERS

OWNER- has the business

improved? Is it wise to make
additional investment?

He is interested to know whether the

business should maintained
increases decrease or disposed of
completely

MANAGEMENT-The management
may ask question such as “What are
the sources of the business?

PROSPECTIVE INVESTORS- “Will

money grow in this business?

CREDITORS

- A creditor many ask following

question before granting loans “Can
the business meet its obligation”