Definition of Income and Expenditure
Management Accounting and Finance management in Shukraniti-1
(CEO-Logy, the science of CEO’s working based on Shukra Niti)
(Examples from Shukra Niti helpful to Chief executive Officer)
Successful Strategies for successful Chief executive Officer – 148
Guidelines for Chief Executive Officers (CEO) series – 147
By: Bhishma Kukreti (sales and marketing expert)
We get first recorded statements about Management Accounting in ‘Arthashastra’ by Kautilya (2, 3).
However, in India, accounting or Management Accounting had been there in India even before the philosopher and political Guru Kautilya wrote ‘Arthashastra’. Kautilya did not create accounting science himself. Kautilya could write about accounting in his Arthashastra only because the system prevailed there in India.
There had been management accounting in practice in very era from Maurya era to Harsha era too. However, this author could find accounting procedure only in Shukraniti of 4th Century AD. In the following chapters, the accounting management will be discussed.
व्याप्यव्यापक भेदश्च मूल्यमानदिभि: पृथक् II 320 II
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हिरण्य पशुधान्यादि स्व्वाधीनं त्वायसंज्ञकम् I
पराधीनं कृतं यत्तु व्ययसंज्ञं धनं तत् II322 II
(Shukra Niti Second Chapter Yuvrajadi Lakshan, 320 -322)
Translation-
The income – expenditure letter /page/ account ledger is that wherein short term, and separately, the long term and real or perception value is recorded. That gold/metal, animals, grains is with you (annually, monthly or daily) is called assets or income and that metal/gold, animals or grains to be paid to others is called expenditure.
(Shukra Niti Second Chapter Yuvrajadi Lakshan, 320 -322)
The CEO should have gross knowledge of income, expenditure and gross knowledge of studying the account ledger.
1-Shukra Niti, Manoj Pocket Books Delhi, page -112
2- Sihag, Balbir S., (2004), Kautilya On the Scope and Methodology of Accounting , organizational Design and the Role of Ethics in Ancient India , Accounting Historians Journal VOl.31 No. 2 p 125 to 148
3- Murthy, Vijaya., Jim Rooney, (2018) The Role of Management Accounting in Ancient India evidence from the Arthasastra , Journal of Business ethics 152(20 October 2018,
Copyright@ Bhishma Kukreti 2020
Management Accounting in Old Sanskrit Literature; Management Accounting in Arthashastra; Management Accounting in Dharmashastra, Management Accounting in Shukraniti