From the early history of accounting

Vocabulary to be memorized

1. origin походження, джерело,

2. identify встановлювати, визначати

3. scholar вчений

4. records записи, accounting records облікові записи

5. to inscribe надписати, накреслити (ім'я, напис і т.п.)

6. clay tablets дощечки (з глини)

7. receipts and expenditures доходи і витрати

8. profits and losses прибуток і збитки

9. to pool об'єднувати, to pool capital об'єднувати капітал

10. It was not by accident... He випадково ...

11. to perform виконувати, здійснювати

12. file справа, архів

13. outfit споряджати, to outfit ships споряджати кораблі

14. tax assessment обкладання податком

15. scrap викидати (за непридатністю), перетворювати на лом

16. store зберігати

17. wicker baskets плетені корзини

Read the text to find out what exactly had a positive impact on the development of accounting in the Dark Ages.

The origin of accounting goes back to man's earliest days. Scholars have identified accounting records in the early historical records of China, Peru and particularly the Middle East regions.

In those days accounting records were inscribed on clay tablets stored in wicker baskets. The file was marked by a clay tablet when it was completed. Every year the clay tablets were scrapped and a new series was started. These records performed the essential accounting functions because they recorded the tax assessment on the villages.

By our standards those functions were relatively simple, but they were truly essential, because they presented a detailed and useful statement of receipts and expenditures in this type of simple economy.

The dark ages saw some continuation in the development of accounting. At this time commerce began to develop in many countries. Voyages became common. Merchants outfitted ships, pooled capital and off they went to many countries. Profits and losses were divided after each voyage had been completed and the goods had been sold. Separate accounts were kept for each ship and there was no need for an annual accounting, because the voyages sometimes took several years.

During the 11th, 12th, 13th and 14th centuries Northern Italy became a prominent commercial centre. It was not by accident that in the 15th century a type of record-keeping, called the Venetian method was developed in Northern Italy. Double entry book-keeping appeared in Venice in 1492 when Pacioli's important mathematics textbook was published.

Answer the following questions.

1. What time does the origin of accounting go back to?

2. Where did scholars identify accounting records?

3. What were accounting records inscribed on and where were they stored?

4. What functions did the accounting records perform?

5. What promoted the development of accounting in the Dark Ages?

6. What country became a prominent commercial centre in the Middle Ages?

7. What method of record-keeping developed in Northern Italy?

8. When did double-entry book-keeping appear?

THE FACULTY OF ACCOUNTING AT THE MOSCOW UNIVERSITY OF CONSUMER COOPERATIVES