Skip to main content

Newton's Law of Bookkeeping



This is how science and accounting blend together.
Newton’s Law of Motion III.
“For every action there is an equal and opposite reaction.”
Double Entry Bookkeeping System:

“For every transaction that happens, there are two effects, one opposing the other, debit and credit.”
According to Newton, whenever objects A and B interact with each other, they exert forces upon each other. When you sit in your chair, your body exerts a downward force on the chair and the chair exerts an upward force on your body. There are two forces resulting from this interaction - a force on the chair and a force on your body. These two forces are called action and reaction forces and are the subject of Newton's third law of motion. ~ The Physics Classroom
F­A = FB
The double entry bookkeeping system is the basis of all the transactions that takes place in the world. It is the very foundation of the accounting system which helps to run the business of the world. The economy of the world depends upon it. The very basic concept of double entry book keeping seems to be inspired from the Newton’s third law of motion.
In double-entry accounting system, two accounting entries are required to record each financial transaction. These entries may occur in asset, liability, income, expense, or capital accounts. Recording of a debit amount to one or more accounts and an equal credit amount to one or more accounts results in total debits being equal to total credits for all accounts in the general ledger. ~ Wikipedia. Here, the action may be debit entry and the reaction may be the credit entry. They oppose each other with equal opposite force, making the accounting possible. The sum total of both the sides must be equal for correct entry. Like in law of motion, if chair gives more force in return, we’ll be bounced and if the body gives more force, the chair will crack. In the same way if any one side of accounting (debit or credit) is larger, it creates huge problem to organization; sometimes leading to death or bankruptcy.
Debit = Credit

Comments

Post a Comment

Popular posts from this blog

My Wish in My Rareview

Peope around the world have strange believes. Some are shocking and some very surprising. Some believe that worshipping will make it rain on the field suffering from drought. Some antient people believed that tsunami or hurrican or any natural disaster was the wrath of God due to some ill activities of human. People do believe, and as a universal law of attraction...... 'YOU RECEIVE WHAT YOU BELIEVE'. I had been to Shree Pashupatinath with a good friend of minethis morning. It was my first time with her to any holy place. I just feel so awesome when I go to Pashupatinath Temple. We had been there because its a favourite place of her as well. While we were worshipping around the tample, at a particular spot - she asked me to turn around and look up, towards the GAJUR.  The Gajur was visible throuh a small peek hole created by positioning of many structures within the temple. Only the Gajur was visible through the hole. It looked beautiful. 'Wow its wonderfu', I sa...
Post a Comment
Read more

Time Management Isn't Working Right!! Is it?

For ages we have been focusing on time, “Manage your time”, “Manage on time”, We have been working for 12-16 hours a day; just to get perfectly exhausted and find out we don’t have enough time for family and loved ones. Result: guilty feeling and dissatisfaction which takes toll on us physically, mentally, and emotionally, further leading to declining levels of engagement, increasing levels of distraction, high turnover rates, and soaring medical costs.   The way we are working isn’t working .   In the article “Manage Your Energy, Not Your Time”, Tony Schwartz and Catherine McCarthy propose a new perspective for managing self by managing energy that can be built and expanded rather than finite time. Managing energy will help to increase and regularly improve work capacity .  With their proven rituals, anyone can increase the level of productivity. In other words, do more at less time. However, to succeed, renewal efforts need solid support and commitment from ...
Post a Comment
Read more