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Documentary on accounting history and evolution

Documentary On Accounting-History-Evolution


   In this documentary, you will find details about how accounting was in ancient times and how accounting evolved. That way you can know what is the main reason for account growth,

A brief note about it The reason for account growth is the brain war between business people and government officials, We will see more details about this later,

starting stage of accounting

The ancient accounting methods of calculation was very different from the accounting method of calculation we use now ,that Most importantly it will record some codes to identify credit and cash transactions in antiquity, you can learn a bit about what it looks like in this photo. This codes ( tick mark , signature etc..) Recorded method was used for cash transactionand and also for credit transactions after payment. then the calculation period of this accounting calculation method is from one week to three months

trading and P & L Account originate

In the second evolution of the ancient account there was no major change other than the separate recording of expenses and income , But in terms of account growth, this improvement has played a very important role. If the account we always use is very clear then the most important reason for that is this revolution that occurred in the account,

Profits are often not calculated in the previous accounting recording system, and only a few found the profit through the previous calculation method, which is also inaccurate, but as far as this calculation method is concerned profit is calculated very importantly and it has become a talking point among the people doing business and the intention to increase the profit among them. So profit was calculated very accurately of this calculation method and it created competition in the business and business people saw profit as a Pride symbol.

ledger Originate


During this period only a few transactions in the business took place over and over again , so a separate book accounting recording system was brought into the account by the accountants . for example , A separate book was set up and recorded for purchase ,sales ,wages transactions And calculated the total and found the profit along with all the transactions as usual.

A some of new changes were made to the account through the separate book setup registration system, for example If it was a cash purchase transaction it was only recorded in the purchase account and if it was a credit purchase transaction it was also recorded in the purchase and credit account. The credit transaction will be strikethrough when the credit is repaid .This makes it much easier to find credit transactions and led to several changes in the code registration system.

Photo like looking at pictures

So far at least 20 to 50 pages have to be read to view the account but since the introduction of this separate book account registration system it has been reduced from 3 pages to five pages

so that the activities of the company can be easily copied and made known to others. Thus the details about the profit of the company became known to the competing companies and also to the government ,So the government so far imposed the tax only on the goods but after this the tax started to be levied on the profits of the company as well.

Brain war between government and company


The company did a some of things to reduce the tax burden, that most important of which was the purchase of assets , As a result, the company's Costs increase and profits and taxes Decreases. .

right side brain image of man

The government has made some changes in the law to avoid such activities of the company and accordingly the companies have to comply with certain conditions if the expenses incurred in purchasing the assets of the company are to be deducted from the profit.

First the company has to submit the details of the acquisition of the assets to the government and then the government can determine a certain amount according to the nature of the property and deduct that amount from the company's profit. ( This is similar to the depreciation calculation method )

Thereafter the primary objective of the company was to purchase assets in order to reduce the tax burden

again: The government has made some changes in the law to avoid such activities of the company and accordingly the company is required to pay tax on   assets   under this new legal provisions of the government

Such actions of the government had a huge impact on the company, thus creating a situation where the company pays taxes on everything it considers to be its profit. So the company recorded everything in its business account, including its petty expenses, most of which were unpaid expense (credit transaction).

personal account Originate

According to that legal provision, every credit transaction must have taken place in accordance with government legal regulations. Only then will it be allowed to record the loss on the credit. In addition, the government has suggested some steps to prepare the account.

Accordingly the company is required to maintain 3 books and each book is divided into two parts.

Example of account preparation

Accordingly cash and credit transaction , if a transaction occurs, it first be recorded in the character account and next, if it is a credit, it must be recorded in the credit book. If it is a cash transaction, it must be recorded under the cash book.

Accordingly credit repayment transaction , This transaction must be recorded in a cash book and credit book account

More information on this can be found on the journal page and Transaction page

The government first issued an accounting format system and ordered all companies to prepare accounts based on it, and also ordered companies to submit their trading account ,asset details with these three books and unpaid expenses information (liability) each year. After that the old method used to prepare the accounts were changed



From the past to the present, the journal is a communication tool used by those who are already familiar with accounting to teach accounting to new beginners.

This journal and the Golden Rules of Accounting were used to make the accounting lesson easier for accountants because more people were needed to maintain the account during this period.

This is a short documentary note on the history of the account and a detailed description will be published soon. And if you have any doubts or need more information please post it below


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