The Accounting Equation of Life in Islam: An Exploratory Study with Special Reference to Quran and Hadith

Abstract

This exploratory study delves into how concepts such as assets, liabilities, the double-entry system, business entity, depreciation, and the accounting equation are reflected in Islamic Doctrines long before the advent of contemporary accounting practices. These teachings not only provide a moral and ethical foundation but also offer a structured approach to accountability and balance that aligns seamlessly with contemporary accounting practices. This convergence of spiritual wisdom and financial acumen underscores the eternal relevance of these principles, guiding both personal conduct and professional integrity. The study further reveals that the concepts of justice, honesty, responsibility and accountability are universal, transcending time and disciplines, thereby enriching our understanding of both spiritual and financial stewardship.