Accountancy

Mrs. Madhura Ghunghrale Teacher (Accountancy)

Accounting enjoys a remarkable heritage. TheHistory of accounting is as old as civilization.The seeds of Accounting were most likely firstsown in Babylonia and Egypt around 400 B.C.who recorded transaction of payment of Wages and Taxes. Historical evidences several that Egypt andused some form of accounting for their Treasuries where god and other valuables waskept. The incharge of treasures heal to sendday wise reports to their superiors known aswazirs and from there month wise reports weresent to kings. Babylonia known as the city of commerce used accounting for business touncover losses taken place due to frauds and lack of efficiency. In Greece accounting was used for apportioning the revenues received among treasuries. Maintaining total receipts, total payments and balance of government financial transaction. Accounting practice in India could be tracedback to a period when twenty three centuries ago Kautilya a minister in Chandra Gupta's kingdom wrote a book named Arth Shastra,which also described how Accounting recordshad to be maintained.First time Luca Pacioli wrote a book on Accounting named Book-keeping. A portion ofthis book contains knowledge of business andbook keeping but spread the knowledge of it. In his book he used the present day popular terms of Accounting Debit (Dr.) Credit (Cr.). These were the concepts used in IndianTerminology Debit comes from the Indian debit which comes format he Latin debita and debeowhich means owed to the proprietor creditcomes from the Italian credit which comesfrom the Latin 'Credo' which means trust of belief. Over the centuries, accounting remained confined to the financial record keepingfunction Business environment has forced the accountants to reassess their roles and functions both within the organisation and the society. The role of an accountant has nowshifted from that of a mere recorder oftransactions to that of the member providingrelevant information to the decision makingteam. Broadly speaking, accounting today is much more than just book keeping and the preparation of financial reports. Accountingare now capable of working in exciting new growth areas such as forensic accounting, ecommerce,financial planning, environmentalaccounting etc. This realization come due to the fact that accounting is capable of providing the kind ofinformation that managers and other interested persons need in order to makebetter decisions As an information system it collects data andcommunicates economic information aboutthe organization to a wide variety of users whose decisions and actions are related to its performance.