Just like every other modern application, Skype also records all the communications we exchange using it. It records instant messages, calls, file transfers, SMS, etc. and makes it easy to view using the Conversation tab.
If you ever feel like getting rid of these history information, then you need to delete them. Skype provides a single click option to clear all the history from you account, but the feature is buried deep under options menu.Really deep!.
To clear history follow the menu Tools –> Options, switch to Privacy Settings tab available on the left side, click on Show advanced options button and finally hit the button Clear history. Ah! You are almost done. Just confirm a popup it displays on screen and your history is vanished from your account.