PURPOSE OF STUDYING

ACCOUNTING?

WHY IT WAS DEVELOPED?

INTODUCTION

Why double entry bookkeeping

developed?

Key Ingredients

Private property

Capital

Commerce

Credit

Writing

Money

Accounting in Ancient times

Many of these factors did not exist in ancient

times, but, until the middle ages, they were not

found together in a strength and form necessary

to push man to the innovation of double entry

writing-

This made the job of ancient accountant

extraordinarily difficult. In societies where all were

illiterate, writing material costly, numeration

difficult and money system inconsistent, a

transaction has to be extremely important to

justify keeping an accounting record…

Which came first?-writing or numbers

Number of archeologist believe that writing

actually developed out of early marks that were

used to tally the kinds and amounts of goods in

stock

Dr Dreyer discovered that the numerous inscribed

bone labels attached to bags of oil and linen in

the tomb of king scorpion, Egypt-date back 5300

year.

One of the oldest profession

In the ancient Egypt, the accountant was called

the ‘eye and ear’ of the king

Accounting in MESOPOTAMIA

Mesopotamian equivalent of today’s

accountant was the scribe

He ensured that the agreements compiled

with detail code requirements for

commercial transactions.

Simple Token System

Simple token system did not require abstract

concepts of numbers, writing or money!

Accounting Predate Writingwriting tablet and Economic tablet with numeric signs (

Roman, Mesopotamian, Susa 3200 BC)

Sealing Tablets

This tablet is a receipt for beer, sealed by a clerk