The impact of international variables on accounting and stores
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Accountancy began in the ancient ages where book keeping
according to the single entry rules were used. It was used in
ancient civilizations B.C and it consisted of book recordings .
As for the accounting system by its current concept, it began
before publishing a book written by Pacisly about accountancy
and bookkeeping in 1494 B.C. In this book he compiled the
bases of using the double entry logic ( credit and debit ). This
method spread all over the European cities, England and the
United States . Accounting was primitive that it had no rules or
principles. It was general and daily then posting to the ledger
book. Accounting entries depended on describing the accounting
operation to a great extent and prices were constant.
Accountancy at this time had three stages:29
Theory of units is another evolution of accountancy evolutions
Finance
Resources
Objective
7- Theory of untis
1- Single entry
2- Debit and credit
concept
3- Account represents
compound of artificial
independent
personalities
Various
Activies
Assets
6-Collective economical
activity theory
5- Artificial personality theory
Assets = liabilities
The accounting entity
4- Collective ownership
theory ( ownership rights )
Capital = assets – liabilities
Diagram no. 730
I- It considered accounts as a combination of artificial persons,
that each account is independent , the debtor is the one who
takes and the creditor is the one who give regardless the relation
of any account with the other .
2- The previous situation developed to achieving the budget
equation and drawing attention to the project owners .Capital
rights = assets - liabilities , focus was on the stock holders
equities as they are the owners of the project and they get the
profits also they guarantee the success of the project .
3- The previous situation also developed to the independence of
management from the project owners . Assets become equal to
liabilities and finance had more than one source that project
owners and stockholders are not the only financiers for the
project . Focus become on the project regardless of its owners’
returns .
As a sequence of that, project management was separated from
its owners . That was a result of the industrial revolution in
Europe and the stock companies motivated this separation .
Adding to that the international depression in 1930 which
increased the attention to costs . At this point many branches of
accountancy developed and there were new branches like the
industrial accountancy , social accountancy and costs
accountancy .. etc . Then accountancy development stopped
from the practical aspect that accountancy was a single entry
developed to double entry then to an efficient measurement and
connection means for wealth and changes that occur in it , also
focus developed from concentrating on budget, creditors
equities and liquidity to the management ability to realize the
annual return and the organization’s ability integrated with its
management to realize expenses and revenues and match
expenses to revenues . Many branches of accountancy
developed yet, the credit and debit concept still dominates all
accounting types till now.31
In conclusion, I consider the theory of units as a great evolution
in the history of accountancy where the accounting
measurement means developed from measuring by cash to
measuring using the unit, in addition to that the accounting
operation idea is different too. There is no credit or debit in the
theory of units but there’s an incoming unit and an outgoing unit
multiplied by their prices and give balanced sums of money .
The reason behind this balance of sums is not because of the
credit and debit but from the logic of the incoming and outgoing
units ,that way many items became measurable while measuring
them accurately is impossible using the double entry system .
For example the human factor (human resources) is not
measured using cash standard in the double entry system but it’s
measurable using the theory of units.
according to the single entry rules were used. It was used in
ancient civilizations B.C and it consisted of book recordings .
As for the accounting system by its current concept, it began
before publishing a book written by Pacisly about accountancy
and bookkeeping in 1494 B.C. In this book he compiled the
bases of using the double entry logic ( credit and debit ). This
method spread all over the European cities, England and the
United States . Accounting was primitive that it had no rules or
principles. It was general and daily then posting to the ledger
book. Accounting entries depended on describing the accounting
operation to a great extent and prices were constant.
Accountancy at this time had three stages:29
Theory of units is another evolution of accountancy evolutions
Finance
Resources
Objective
7- Theory of untis
1- Single entry
2- Debit and credit
concept
3- Account represents
compound of artificial
independent
personalities
Various
Activies
Assets
6-Collective economical
activity theory
5- Artificial personality theory
Assets = liabilities
The accounting entity
4- Collective ownership
theory ( ownership rights )
Capital = assets – liabilities
Diagram no. 730
I- It considered accounts as a combination of artificial persons,
that each account is independent , the debtor is the one who
takes and the creditor is the one who give regardless the relation
of any account with the other .
2- The previous situation developed to achieving the budget
equation and drawing attention to the project owners .Capital
rights = assets - liabilities , focus was on the stock holders
equities as they are the owners of the project and they get the
profits also they guarantee the success of the project .
3- The previous situation also developed to the independence of
management from the project owners . Assets become equal to
liabilities and finance had more than one source that project
owners and stockholders are not the only financiers for the
project . Focus become on the project regardless of its owners’
returns .
As a sequence of that, project management was separated from
its owners . That was a result of the industrial revolution in
Europe and the stock companies motivated this separation .
Adding to that the international depression in 1930 which
increased the attention to costs . At this point many branches of
accountancy developed and there were new branches like the
industrial accountancy , social accountancy and costs
accountancy .. etc . Then accountancy development stopped
from the practical aspect that accountancy was a single entry
developed to double entry then to an efficient measurement and
connection means for wealth and changes that occur in it , also
focus developed from concentrating on budget, creditors
equities and liquidity to the management ability to realize the
annual return and the organization’s ability integrated with its
management to realize expenses and revenues and match
expenses to revenues . Many branches of accountancy
developed yet, the credit and debit concept still dominates all
accounting types till now.31
In conclusion, I consider the theory of units as a great evolution
in the history of accountancy where the accounting
measurement means developed from measuring by cash to
measuring using the unit, in addition to that the accounting
operation idea is different too. There is no credit or debit in the
theory of units but there’s an incoming unit and an outgoing unit
multiplied by their prices and give balanced sums of money .
The reason behind this balance of sums is not because of the
credit and debit but from the logic of the incoming and outgoing
units ,that way many items became measurable while measuring
them accurately is impossible using the double entry system .
For example the human factor (human resources) is not
measured using cash standard in the double entry system but it’s
measurable using the theory of units.