What accounting teaches us about life!

What accounting teaches us about life!

 Holla accounting professionals!

You are very familiar with the concept of debits and credits. You possess a crystal clear understanding of a multitude of accounting standards including IFRS. However, what you are not aware of is how these are closely related to your own lives!

Here I present you with a new approach to accounting. 

Debit positivity, credit negativity!

Debit what comes in, credit what goes out, is one of the golden rules of accounting. Why not debit positivity and credit negativity? 

Here is what the journal entry would look like,

Positivity Dr.

    Negativity Cr.

Debit activeness, credit laziness

Activeness is not a state of restlessness. It is the art of living with purpose. Staying consistently active is of paramount importance if you want to succeed in life. Laziness only tantamounts to failure. 

Pass this journal entry,

Activeness Dr.

    Laziness Cr.

Capitalize on your strengths 

You are an asset for yourself. Well, that sounds funny but true! In accountancy, you capitalize only when that expense adds some value to the asset. (Please ignore notional assets!) Look within yourself and identify your strengths and weaknesses. The correct accounting treatment is not to capitalize on your weaknesses, but on your strengths. 

The journal entry would appear something like this,

Strengths Dr. 

    Self-introspection Cr.

[Being strengths capitalized]

Revalue yourself!

Remember revaluation gains and losses? You check for asset revaluation in accordance with the standards that you are already well versant with. 

Every now and then you must revalue yourself to keep your progress in check. Try to avoid revaluation losses and try to gain as much as possible by self-improvising yourself.

Your name A/c

    To Revaluation gain A/c 

[Being You(asset) revalued]

Generate Goodwill of other person by doing more than needed

Be it a merger or business combination, in accounting parlance, Goodwill arises when you pay more than the fair market value of the net assets of the business you are acquiring. What has this to do with real life? 

When you pay someone more than you perceive as the right amount payable to a person, you are buying goodwill. Do not get me wrong! You pay someone with acts of kindness, gratitude, and acts of love. You get a life partner through a merger. The root cause of suffering in a relationship is limiting our love to what we perceive the other person deserves. The same is the case with a 9 to 5 Job!

Wife/husband/friend/people/Employer A/c 

Goodwill A/c

    To Love/kindness/Gratitude/Devotion A/c

Figure out your opportunity costs

You might have heard the term known as discounting. Though you cannot discount yourself mathematically, you ought to consider opportunity costs. Now what opportunity cost am I talking about?

From choosing a career path to choosing a relationship, there is always an opportunity cost. 

The biggest opportunity cost is not doing what you wanna do due to your own fears of being exposed! 

Get up and do what you want. Find out what is holding you back and define your life. 

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Keep smilingšŸ˜Š

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