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is the one who borrows a money that needs to be paid in the future. These two accounting terms

were derived from the words debit and credit. In late 16 century, the calculation of profit and th

the preparation of a profit and loss report were made.

The changes happened in 19 century are became necessary to improve the process of th

recording and reporting financial informations since it has the information of business

combinations, mergers and consolidations. With the presence of information age driven by

electronic devices such as computer, the design for processing information turned from manual

to electronical assisted. In this period, there were at least 4 funds statements in used- those that

summarizes changes in cash, in current asset, in working capital and overall financial activities.

In 1940s, accounting professions used the funds statements to measure the flow of monies rather

than simply the capital between balance sheet dates (Manuel 3; Alexander 3).

Here, the 4 stages of how accounting developed will discuss for brief explanations

(Akinyemi, et. al 18-19):

1. Pre-Capitalist Period, 4000BC - 1000AD: Wealth tended to accrue to those who held in

religions and mainly kept in public work by the government.

2. Commercial Capitalism 1000-1750 AD: In this era, there was improvement in business

social, activities and politics.

3. Industrial Capitalism, 1760-1830AD: In this period they used double entry system instead

of sigle entry system for a better control purposes and facilitated the preparation of

financial accounts.

4. Financial Capitalism, 1830AD to date: Here the changes in accounting were emphasize: