Accounting History
The practice of Accounting has been around for many thousands of years and much of what we know of ancient civilizations are gleaned from their accounting records.
Most of the formal modern day accounting started at the end of the Crusades. As trade dramatically increased between Europe and Middle East, businesses grew to beyond what a single owner could manage. This brought about the need for written records so that business owners could keep track of their transactions and ensure that there agents performed profitably.

The double entry system was first used in Genoa, Italy around the 13th century and was further polished in Venice. Luca Pacioli wrote about the "Method of Venice" in his 1494 book, The Summa and this caused him to be called "the father of accounting" although all he really did was publish the method of Venice. This method called for three books to be used when recording transactions; a memorandum book, a journal and a ledger. Entries where posted from the memorandum book to the journal with debits on the left and credits on the right. A trial balance was required at the end of a financial period.

The word Debit comes from the Latin word "debita" (Italian "debito") which means owed to the proprietor.

The word Credit comes from the Latin word "credo" (Italian "credito") which means owed by the proprietor.

With the Industrial revolution businesses expanded to great size, both in terms of sales, purchases and staff. These larger business required capital and capital required investors who in turn required proper reporting of funds. They were also subject to increased government regulation and taxation.

Accounting kept on advancing to the present day and involves the standardization of reporting and the development of international accounting standards.

 
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