The Accounting Equation and Revisiting the Theory of Double-Entry Bookkeeping

Paton's theory of double-entry system (hereafter, “DES”) inspired the development of current accounting. This paper uses a mathematical perspective to review Paton's and existing theory of DES called the law of property or assets. Using syntactic language, this paper proposes another theory of DES, called the “law of funds.” The paper contributes to the current literature by proposing the development of DES theory from a mathematical perspective, as DES was originally written in mathematical text and documented by a mathematics professor