As we already know some history of Accounting. But in this article you are going to learn some unique point which you may not know. and we also know that basics knowledge of anything always helps to understand more.
The history of accounting can be traced to the dawn of commerce, with evidence to prove that accounting existed as early as 2600 B.C. The barter system was the beginning as ‘exchange’ is the basis of accounting. With the money economy taking shape credit transactions required some method of recording.
With the growth of trade and commerce, accounting grew in importance. Between the years 1350 and 1450, a systematic method of account-keeping had developed in Geneva and Venice.
In India, Kautilya’s Arthashastra, written during the 4th century B.C., not only described politics and economics, but also explained the art and science of account-keeping. Kautilya has devoted an entire chapter to ‘The Business of Keeping Accounts in the Office of an Accountant.’ Using shlokas or Sanskrit verses, the Arthashastra offers details on account-keeping, an accountant’s office, supervision methods, checking of accounts, distinction between capital and revenue, profits and expenses and so on.
Though it is claimed that double entry book-keeping originated in Italy, there is sufficient ground to believe that this system, though not specifically called the double entry system, had its origins in India.