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QURAN AND ACCOUNTING

QURAN AND ACCOUNTING


As a Muslim, it is our faith that the Holy Quran is a comprehensive code of life and is a complete Source of Guidance to us in conduct of all our worldly affairs.
The Holy Quran lays great stress on “KITABAT” (recording in Black and White), particularly writing down of financial and business transactions. The contents of Verses 282 and 283 of Sura Al-Baqarah, inter-alia stipulates that:-
"Whenever you enter into a transaction involving mutual indebtedness for specified period, you should keep a written record of the same. The business transactions, however large or small, must be committed to writing for the period involved.
Moreover, following MAIN ETHICAL REQUIREMENTS are laid down in these verses:-
It is enjoyed that the writer or the book-keeper should record the transactions properly without any omissions or additions of his own.
He should not decline to put down in writing any of the transactions.
The transacting practice should not influence or compel the writer to deviate from proper recording of the facts.
We are told that it is ALLAH Who has taught the writer or accountant the art of accounting. One thing on which the Quran lays great emphasis is that both the writer and the transacting parties must have the highest regard for their responsibility and accountability to ALLAH.

Conclusion:

So, from the above mentioned verses of Holy Quran we extract the foundation of Book-Keeping and Accounting and these Verses of Holy Quran contains the fundamental accounting principles of Periodicity and Vouching i.e. evidencing the business transactions. They effectively stressed the professional ethics of Honesty and Objectivity to be strictly followed by the accountants while dealing with their routine business and financial transactions.
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