The Characteristics Of Ancient Accounting

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Ancient accounting started way back during the ancient civilization. However, double-entry bookkeeping started in the 14th century in Italy. The Italians of the 14th to 16th century were the first to practice the use of Arabic, rather than Roman, numerals for tracking business accounts. Luca Pacioli was acknowledged as the Father of Accounting and Bookkeeping. However, he was not the one who invented the double-entry bookkeeping system but he was the one who started to spread this knowledge and the first to publish his work on this system. The principles published by him remain mostly unchanged until today. Before his work, Benedetto Cotrugli wrote Delia Mercatura et del Mercante Perfetto (Of Trading and the Perfect Trader), that touches briefly about the features of double entry bookkeeping. Although the work of Benedetto Cotrugli had not been published for more than a century, Pacioli was familiar with the manuscript and he credited Cotrugli as the creator of the…show more content…
The memorandum, or memorial, was for recording business transactions in chronological order. The journal acts as the merchant's private account book whereby the entries consisted of a narrative debit, credit and explanation in one continuous paragraph. As for the journal, it had only one column which was not totaled. There were no compound entries. The ledger was the most identical to those in modern ledgers. The money and date columns were almost identical to those in modern ledgers, with entries consisting of brief paragraphs, debits on the left and credits on the right. He also demonstrated on the year-end closing entries and proposed the usage of trial balance as a proof that the ledger is balanced. It is the end of Pacioli's accounting cycle. Credited amount from the old ledger are listed on the right side while debited amount on the left of the balance sheet. If both amounts are equal, it means that the ledger is
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