History of Accounting: Fundamentals of Accountancy, Business and Management 1 (FABM 1)

Fundamentals of
SENIOR
Accountancy, Business and HIGH
SCHOOL
Management 1 (FABM 1)
Self-Learning
Module
History of Accounting 3
Quarter 3
Fundamentals of Accountancy, Business and Management 1 (FABM 1)
Quarter 3 – Self-Learning Module 3: History of Accounting
First Edition, 2020
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Published by the Department of Education - Schools Division of Pasig City
Development Team of the Self-Learning Module

Writer: Hedelita B. Calonia
Editor: Edna D. Camarao
Reviewers:
Content/Language: Jennifer M. Hobrero, Emmanuel B. Penetrante
Technical: Emmanuel B. Penetrante
Illustrator: Name
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Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
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OIC-Assistant Schools Division Superintendent
Victor M. Javeña EdD
Chief, School Governance and Operations Division and
OIC-Chief, Curriculum Implementation Division
Education Program Supervisors
Librada L. Agon EdD (EPP/TLE/TVL/TVE)

Liza A. Alvarez (Science/STEM/SSP)
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Norlyn D. Conde EdD (MAPEH/SPA/SPS/HOPE/A&D/Sports)
Wilma Q. Del Rosario (LRMS/ADM)
Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang)
Perlita M. Ignacio PhD (EsP)
Dulce O. Santos PhD (Kindergarten/MTB-MLE)
Teresita P. Tagulao EdD (Mathematics/ABM)
Printed in the Philippines by Department of Education Schools Division of
Pasig City
Fundamentals of SENIOR
Accountancy, Business HIGH
and Management 1 (FABM1) SCHOOL
Self-Learning
Module
3
Quarter 3
History of
Accounting
Introductory Message
For the facilitator:
Welcome to the Senior High School – Fundamentals of Accountancy, Business

and Management 1 Self Learning Module on History of Accounting !
This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.
This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
Welcome to the Fundamentals of Accountancy, Business and Management 1

Self Learning Module on History of Accounting!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.
This module has the following parts and corresponding icons:
Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.
Pretest - This measures your prior knowledge about the lesson

at hand.
Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.
Lesson - This section discusses the topic in the module.
Activities - This is a set of activities that you need to perform.
Wrap-Up - This section summarizes the concepts and

application of the lesson.
Valuing - This part integrates a desirable moral value in the

lesson.
Posttest - This measures how much you have learned from the
entire module.
EXPECTATIONS
After going through this module, you are expected to:

1. narrate the history and origin of accounting;
2. enumerate the methods of record-keeping that were invented; and
3. discuss the various accounting techniques that have evolved.
PRETEST
Directions: Write T if the statement is correct, and F if otherwise.
1. Accounting history is the study of the evolution in accounting thought,

practices, and institutions in response to changes in the environment.
2. Luca Pacioli is recognized as "The Father of Accounting and Bookkeeping”.

3. The Code of Hammurabi was created to standardize weights and measures.
4. The first electronic spreadsheet was VisiCalc for Apple II.
5. Technology brings necessary changes in the field of accounting.
RECAP
Directions: Recall and explain briefly.
1. Up to what function only can a bookkeeper do compared to an accountant?
2. Why accounting is considered as the backbone of any business aside from

being known as the language of the business?
LESSON
Accounting, just like other disciplines, has a beginning. Egyptians refer to

accountants as the “eye and ear” of the kings. Romans used “daybook” to record
receipts and payments. Arabs used the Islamic Accounting System and Chao
Dynasty (1122-256 B.C.) used sophisticated government accounts.
Father of Accounting and Bookkeeping
Luca Pacioli is known as the Father of Accounting and Bookkeeping because

he was the first to describe the system of debits and credits, also known as a double
entry system, in journals and ledgers that is still the basis of today’s accounting
system.
Seven Key Accounting Ingredients
1. Private Property - Ownership of an asset can be transferred and there is a need to

record the transaction.
2. Capital - Recording of transactions is worthwhile and cost-effective because

wealth is productively employed.
3. Commerce - The exchange of goods on an extensive level and the volume of

transactions necessitate the need to devise a formally organized accounting
system.
4. Credit - The existence of buying and selling goods on credit had created the need
for an accounting system that could be applied to record credit transactions.
5. Writing - Recording of transactions are all in writing.
6. Money - There is a need for a common denominator for the exchange

of transactions.
7. Arithmetic - Calculation is needed in a formal system.
19th Century
A double-entry system was used instead of the single-entry system because it

proved to be a better method for control purposes and it facilitated the preparation
of the final accounts.
In Colonial America
Most records of this period relied on single-entry system method or was simply
a narrative of accounts and transactions. However, for businesses to operate
successfully, the accounting procedure expanded beyond simply recording entries to
include the preparation, classifications, and analysis of financial statements.
The Industrialized World
Accounting transactions become more complex because of the rapid increase

in businesses. There is a need for a more reliable recording of transactions.
Accountants have become an integral part of the business and financial system.
Professional standard bodies, regulatory boards, and government act proliferated.
21st Century
The Securities and Exchange Commission is a governing agency that sets

accounting standards. Dodd-Frank Wall Street Reform and Consumer Protection Act
was also passed after the financial crisis of 2008. Dan Brinklin and Bob Frankson
wrote VisiCalc for Apple II, the first electronic spreadsheet, an important business
application for the personal computers.
ACTIVITIES
Directions: Identify the statements below using the seven key ingredients in
accounting.
1. There is a need for common denominator for the exchange of transactions.

2. Recording of transactions is worthwhile and cost-effective.
3. The exchange of goods could be applied universally.
4. There is an existence of buying and selling on credit.
5. Ownership of an asset can be transferred.
6. Recording of transactions is all in writing.
7. The Calculation is needed in a formal system.
WRAP-UP
To summarize what you have learned:
1. narrate the history of accounting; and

2. identify the record-keeping methods and accounting techniques that have
evolved.
VALUING
Directions: Scan your immediate environment and generate 5 businesses of

various types.
1. Why do these businesses start?
2. Are these businesses successful financially?
“A company is only as good as how well its accounting is done” – Angela Nzioki
POSTTEST
Directions: Fill in the blank. Write the correct answer in the space provided.
1. _____________________ is referred to as the “Father of Accounting and

Bookkeeping.”
2.____________________ was a German economic who wrote “Model Chart of

Accounts.”
3. The seven ingredients key ingredients in accounting are private property, capital,
______________, credit, writing, money and arithmetic.
4. _____________________________ was created to standardize weights and measures

and provided guidance on commercial transactions and payments.
5. _________ are the lifeblood of the government.

KEY TO CORRECTION
7. ARITHMETIC
6. WRITING
TAXES 5.
5.T 5. PRIVATE PROPERTY
HAMMURABI
4.T 4. CREDIT THE CODE OF 4.
3. T 3. COMMERCE COMMERCE 3.
2. T 2. CAPITAL EUGEN SCHLAMBECH 2.
1. T 1. MONEY 1. LUCA PACIOLI
PRE-TEST ACTIVITY: POST-TEST
References
Ballada, W. 2017. Fundamentals of Accountancy, Business,
and Management 1. VDomDane Publishers.
Banggawan, RB. Asuncion, DJ. 2017. Fundamentals of Accountancy,

Business, and Management 1. Real Excellence Publishing.
Feme, PM. Cabuñag, HP. 2017. Fundamentals of Accountancy, Business and

Management 1. Fastbooks Educational Supply, Inc
Ferrer, RC. Millan, CV. 2017. Fundamentals of Accountancy, Business, and

Management 1. Bandolin Enterprise.
San Juan, DA. 2018. Fundamentals of Accounting. Elmoer Publishing
Rabo, JS. Tugas,FC.Salendrez, HE. 2016. Fundamentals

of Accountancy, Business, and Management 1. Vibal Group Inc.
San Juan, D.A. 2018. Fundamentals of Accounting. Elmoer Publishing
“Accounting Is History, Right?” BeansTalk KnowHow, 10 Oct. 2019. Accessed on

July 6, 2020. beanstalkknowhow.com/blog/accounting-is-history-right/.
Bellis, Mary. "History of Accounting From Ancient Times to Today." ThoughtCo.

Accessed on June 20, 2020. https://www.thoughtco.com/history-of-
accounting-1991228.
"History of Accounting - Introduction to Bookkeeping." Fremont College. January

02, 2019. Accessed on June 20, 2020. https://fremont.edu/history-of-
accounting/.

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Fundamentals of

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

Published by the Department of Education - Schools Division of Pasig City

Development Team of the Self-Learning Module

Education Program Supervisors

Librada L. Agon EdD (EPP/TLE/TVL/TVE)

For the facilitator:

Welcome to the Senior High School – Fundamentals of Accountancy, Business

This Self-Learning Module was collaboratively designed, developed and

Notes to the Teacher

Welcome to the Fundamentals of Accountancy, Business and Management 1

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

Pretest - This measures your prior knowledge about the lesson

Recap - This part of the module provides a review of concepts

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

Valuing - This part integrates a desirable moral value in the

After going through this module, you are expected to:

Directions: Write T if the statement is correct, and F if otherwise.

1. Accounting history is the study of the evolution in accounting thought,

2. Luca Pacioli is recognized as "The Father of Accounting and Bookkeeping”.

4. The first electronic spreadsheet was VisiCalc for Apple II.

5. Technology brings necessary changes in the field of accounting.

1. Up to what function only can a bookkeeper do compared to an accountant?

2. Why accounting is considered as the backbone of any business aside from

Accounting, just like other disciplines, has a beginning. Egyptians refer to

Father of Accounting and Bookkeeping

Luca Pacioli is known as the Father of Accounting and Bookkeeping because

Seven Key Accounting Ingredients

1. Private Property - Ownership of an asset can be transferred and there is a need to

2. Capital - Recording of transactions is worthwhile and cost-effective because

3. Commerce - The exchange of goods on an extensive level and the volume of

5. Writing - Recording of transactions are all in writing.

6. Money - There is a need for a common denominator for the exchange

A double-entry system was used instead of the single-entry system because it

The Industrialized World

Accounting transactions become more complex because of the rapid increase

The Securities and Exchange Commission is a governing agency that sets

1. There is a need for common denominator for the exchange of transactions.

To summarize what you have learned:

1. narrate the history of accounting; and

Directions: Scan your immediate environment and generate 5 businesses of

1. _____________________ is referred to as the “Father of Accounting and

2.____________________ was a German economic who wrote “Model Chart of

4. _____________________________ was created to standardize weights and measures

5. _________ are the lifeblood of the government.

Banggawan, RB. Asuncion, DJ. 2017. Fundamentals of Accountancy,

Feme, PM. Cabuñag, HP. 2017. Fundamentals of Accountancy, Business and

Ferrer, RC. Millan, CV. 2017. Fundamentals of Accountancy, Business, and

Rabo, JS. Tugas,FC.Salendrez, HE. 2016. Fundamentals

San Juan, D.A. 2018. Fundamentals of Accounting. Elmoer Publishing

“Accounting Is History, Right?” BeansTalk KnowHow, 10 Oct. 2019. Accessed on

Bellis, Mary. "History of Accounting From Ancient Times to Today." ThoughtCo.

"History of Accounting - Introduction to Bookkeeping." Fremont College. January

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