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Introduction To Accounting
Introduction To Accounting
Early emphasis on accounting for the clergy, for the nobility and the landed gentry The first known book on double entry bookkeeping which is the backbone of accounting appeared in Venice in 1494 A.D. It was the Summa de Arithmetica, Geometria, proportioni et Proportionalita by Frater Luca B.Pacioli, a Fransiscan priest and mathematician and a very close friend of Leonardo da Vinci
The seventeenth century witnessed the advent of the Industrial Revolution in Britain. James Watt invented the Steam Engine, Harvey invented the Cotton-Spinning Jenny, Bessemer invented the Converter and so on. This led to the growth of cost and industrial accounting. This century also heralded the beginning of limited liability companies. As ownership was divorced from management, the need for independent auditors or public accountants was strongly felt and this paved the way for the emergence of auditing or public accounting as a profession.
Impersonal Accounts Real Accounts Dr. What Comes In Cr. What Goes Out Nominal Accounts Dr. Expenses and Losses Cr. Income and Gains