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Purpose

Age of Scientic Accounting

 The Industrial Revolution inEngland posed new problems foraccountants such as valuation ofxed asset being settled byadopting concepts of prudence ,oing concern, matching and

historical cost less depreciation as

Age ofStagnation

How the periodbetween theadvent of doubleentry and Industrialrevolution was

characteried!

4 Phase Developmentof AccountingPrinciples in USA:

"anagement

#ontribution Institution

#ontribution

Professional

Double EntryAccounting byLuca Pacioli Purpose $ give trader

without delayinformation to hisasset and liabilities

% boo&s used'

(memorandum, )ournal, *edger+

dvised computation

-./.(Edwards+

0isadvantages$Roman 1umerals

(di2cult3add,subtract, multiply,

divide+rabic numbers(easily altered+

Early days(1o prot, expen! 4

revenue always

same+

-..-(Thompson

+

dvantages$

5ritten6large rm

7ral6domesticPractical

forirregular

-.8.(clacy+

5riting9nd, early

dayscondenc

e withoath (fact

andpromises

-:;;;6-