In economics , cash is money in the physical form of currency , such as banknotes and coins .
128-458: In bookkeeping and financial accounting , cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts ). Cash is seen either as a reserve for payments, in case of a structural or incidental negative cash flow or as a way to avoid a downturn on financial markets. The English word cash originally meant ' money box ' , and later came to have
256-625: A British invasion in 1803 but successfully retaliated. The First Kandyan War ended in a stalemate. By then the entire coastal area was under the British East India Company as a result of the Treaty of Amiens . On 14 February 1815, Kandy was occupied by the British in the Second Kandyan War , ending Sri Lanka's independence. Sri Vikrama Rajasinha, the last native monarch of Sri Lanka,
384-535: A Pāḷi chronicle written in the 5th century CE, the original inhabitants of Sri Lanka are said to be the Yakshas and Nagas . Sinhalese history traditionally starts in 543 BCE with the arrival of Prince Vijaya , a semi-legendary prince who sailed with 700 followers to Sri Lanka, after being expelled from Vanga kingdom (present-day Bengal ). He established the Kingdom of Tambapanni , near modern-day Mannar . Vijaya (Singha)
512-765: A bhikkhu and the son of the Mauryan Emperor Ashoka arrived in Mihintale carrying the message of Buddhism. His mission won over the monarch, who embraced the faith and propagated it throughout the Sinhalese population . Succeeding kingdoms of Sri Lanka would maintain many Buddhist schools and monasteries and support the propagation of Buddhism into other countries in Southeast Asia. Sri Lankan Bhikkhus studied in India's famous ancient Buddhist University of Nalanda , which
640-430: A severe economic crisis occurred caused by rapidly increasing foreign debt, massive government budget deficits due to tax cuts, falling foreign remittances, a food crisis caused by mandatory organic farming along with a ban on chemical fertilizers, and a multitude of other factors. The Sri Lankan Government officially declared the ongoing crisis to be the worst economic crisis in the country in 73 years. In August 2021,
768-417: A 24,000 strong army. Unlike previous invaders, he looted , ransacked and destroyed everything in the ancient Anuradhapura and Polonnaruwa Kingdoms beyond recovery. His priorities in ruling were to extract as much as possible from the land and overturn as many of the traditions of Rajarata as possible. His reign saw the massive migration of native Sinhalese people to the south and west of Sri Lanka, and into
896-484: A balanced accounting equation. A ledger is a record of accounts . The ledger is a permanent summary of all amounts entered in supporting Journals which list individual transactions by date. These accounts are recorded separately, showing their beginning/ending balance . A journal lists financial transactions in chronological order, without showing their balance but showing how much is going to be entered in each account. A ledger takes each financial transaction from
1024-597: A cash payment in retail costs an average of 24 euro cents, while payments with a girocard cost 30 cents (or often 0.3 to 0.4% of sales plus a transaction fee) and with a credit card charge one euro which is included in the sales price. This is why retailers often refuse to accept card payments below a minimum amount. Depending on the account model, there are also booking costs for the account holder with an average of 35 euro cents charged for each(!) account posting. Because of this convenient source of income, commercial banks and credit card companies favor cashless payments. In
1152-574: A combination of such motives, with the precautionary motive of preserving value and anonymous payment being decisive. Due to its unique characteristics, there is no perfect substitute for cash. Demonetisation or capital control can destabilize the economy if electronic means of payment are not readily available (e.g. 2016 Indian banknote demonetisation ). Cash in circulation is characterized by strong seasonal fluctuations. Wage and salary payment dates, tax payment dates or holidays lead to statistically perceptible increases in cash in circulation, for which
1280-494: A fairly complicated decision and is analyzing the pros and cons and working to determine under which conditions it may make sense to, one day, issue a digital currency. As a threat, a central bank digital currency could increase the risk of a run on the banking system. Also in 2012, Sveriges Riksbank , the central bank of Sweden, was reported to analyze technological advances with regard to electronic money and payment methods for digital currency as an alternative to cash. In 2019, it
1408-463: A fledgling Tamil militancy in the north during the 1970s. The policy of standardisation by the Sirimavo government to rectify disparities created in university enrolment, which was in essence an affirmative action to assist geographically disadvantaged students to obtain tertiary education, resulted in reducing the proportion of Tamil students at university level and acted as the immediate catalyst for
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#17328442561471536-505: A food emergency was declared. In June 2022, Prime Minister Ranil Wickremesinghe declared the collapse of the Sri Lankan economy in parliament. The crisis resulted in Sri Lanka defaulting on its $ 51 billion sovereign debt for the first time in its history, along with double-digit inflation, a crippling energy crisis that led to approximately 15 hour power cuts, severe fuel shortages leading to
1664-402: A high level of technical effort and generates immense amounts of data. It would combine the disadvantages of payment methods, the somewhat cumbersome nature of cash from the offline world and the lack of anonymity of electronic money from the online world. In addition, in most countries, personal tracking of payment transactions is not permitted for the reasons of information privacy . There are
1792-480: A large-scale power blackout or shutdown of the communication network. Therefore, central banks and governments are increasingly driving the sufficient availability of cash. The US Federal Reserve has provided guidelines for the continuity of cash services, and the Swedish government is concerned about the consequences in abandoning cash and is considering to pass a law requiring all banks to handle cash. Digital currency
1920-515: A number of organisations, the Sri Lankan government announced in 2011 a plan to rename all those over which it has authority. The pre-history of Sri Lanka goes back 125,000 years and possibly even as far back as 500,000 years. The era spans the Palaeolithic , Mesolithic , and early Iron Ages . Among the Paleolithic human settlements discovered in Sri Lanka, Pahiyangala (37,000 BP), named after
2048-447: A part of history from the very beginning of human existence. Barter and other methods of exchange were used to conduct a wide variety of trade transactions during this time period. Since the 1980s, the use of banknotes has increasingly been displaced by credit and debit cards, electronic money transfers and mobile payments , but much slower than expected. The cashless society has been predicted for more than forty years, but cash remains
2176-426: A result of the depression of 1847 stalled economic development and prompted the governor to introduce a series of taxes on firearms, dogs, shops, boats, etc., and to reintroduce a form of rajakariya , requiring six days free labour on roads or payment of a cash equivalent. These harsh measures antagonised the locals, and another rebellion broke out in 1848. A devastating leaf disease, Hemileia vastatrix , struck
2304-660: A secondary meaning ' money ' . This secondary usage became the sole meaning in the 18th century. The word cash comes from the Middle French caisse ' money box ' , which comes from the Old Italian cassa , and ultimately from the Latin capsa ' box ' . In Western Europe, after the fall of the Western Roman Empire , coins, silver jewelry and hacksilver (silver objects hacked into pieces) were for centuries
2432-476: A very small part of the money supply. Its remaining role is to provide a form of currency storage and payment for those who do not wish to take part in other systems, and make small payments conveniently and promptly, though this latter role is being replaced more and more frequently by electronic payment systems . Research has found that the demand for cash decreases as debit card usage increases because merchants need to make less change for customer purchases. Cash
2560-557: Is Pidurutalagala , reaching 2,524 metres (8,281 ft) above sea level. Sri Lanka has 103 rivers. The longest of these is the Mahaweli River , extending 335 kilometres (208 mi). These waterways give rise to 51 natural waterfalls of 10 metres (33 ft) or more. The highest is Bambarakanda Falls , with a height of 263 metres (863 ft). Sri Lanka's coastline is 1,585 km (985 mi) long. Sri Lanka claims an exclusive economic zone extending 200 nautical miles , which
2688-417: Is a generic term for various approaches to support secure transactions of the public or using a distributed ledger , like blockchain , as a new technology for decentralized asset management. The blockchain 1.0 era has enabled the application of virtual digital currencies in the marketplace, such as money transfer and payment systems. It considers establishing an electronic version of the national currency which
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#17328442561472816-400: Is a record of small-value purchases before they are later transferred to the ledger and final accounts; it is maintained by a petty or junior cashier. This type of cash book usually uses the imprest system : a certain amount of money is provided to the petty cashier by the senior cashier. This money is to cater for minor expenditures (hospitality, minor stationery, casual postage, and so on) and
2944-464: Is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different ledger accounts. A daybook is a descriptive and chronological (diary-like) record of day-to-day financial transactions ; it is also called a book of original entry . The daybook's details must be transcribed formally into journals to enable posting to ledgers. Daybooks include: A petty cash book
3072-429: Is a three-column list. Column One contains the names of those accounts in the ledger which have a non-zero balance. If an account has a debit balance, the balance amount is copied into Column Two (the debit column ); if an account has a credit balance, the amount is copied into Column Three (the credit column ). The debit column is then totalled, and then the credit column is totalled. The two totals must agree—which
3200-481: Is adjusted by an equal and opposite amount. Other adjustments such as posting depreciation and prepayments are also done at this time. This results in a listing called the adjusted trial balance . It is the accounts in this list, and their corresponding debit or credit balances, that are used to prepare the financial statements. Finally financial statements are drawn from the trial balance, which may include: The primary bookkeeping record in single-entry bookkeeping
3328-523: Is also observed in many other currency areas, e.g. in the United States and Japan . Theoretically, it is possible to track cash usage by capturing the unique serial numbers on the banknotes during transactions. To do this, the serial numbers would have to be recorded personally for all withdrawals from automated teller machines (ATM) and for each payment transaction at a retail checkout, including change. In practice, such comprehensive tracking requires
3456-438: Is approximately 6.7 times Sri Lanka's land area. The coastline and adjacent waters support highly productive marine ecosystems such as fringing coral reefs and shallow beds of coastal and estuarine seagrasses . Sri Lanka has 45 estuaries and 40 lagoons . Sri Lanka's mangrove ecosystem spans over 7,000 hectares and played a vital role in buffering the force of the waves in the 2004 Indian Ocean tsunami . The island
3584-423: Is backed by the central bank as the issuer. Virtual currency is a digital representation of value that is neither issued by a central bank or a public authority, such as Bitcoin . Facebook's concept for the diem is based on a token to be backed by financial assets such as a basket of national currencies. In 2012, Bank of Canada was considering introducing digital currency. Meanwhile, it rates digital currency
3712-433: Is considered the oldest human-planted tree (with a continuous historical record) in the world. ( Bodhivaṃsa ) Sri Lanka experienced the first of many foreign invasions during the reign of Suratissa , who was defeated by two horse traders named Sena and Guttika from South India. The next invasion came immediately in 205 BCE by a Chola named Elara , who overthrew Asela and ruled the country for 44 years. Dutugamunu ,
3840-548: Is increasing in circulation. The amount of the United States dollar in circulation increased by 42% from 2007 to 2012. The amount of pound sterling banknotes in circulation increased by 29% from 2008 to 2013. The amount of euro in circulation increased by 34% from August 2008 to August 2013 (2% of the increase was due to the adoption of euro in Slovakia 2009 and in Estonia 2011). In economic theory (according Keynesian economics ),
3968-523: Is investigating whether Swedish krona need to be made available in electronic form, the so-called e-krona, and if so, how it would affect Swedish legislation and the Riksbank's task. It has started procuring a technical supplier to develop and test solutions for a potential future e-krona. No decisions have yet been taken on issuing an e-krona. An analysis by the Deutsche Bundesbank in 2017 found that
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4096-461: Is lost in obscurity, but recent research indicates that methods of keeping accounts have existed from the remotest times of human life in cities. Babylonian records written with styli on small slabs of clay have been found dating to 2600 BC. Mesopotamian bookkeepers kept records on clay tablets that may date back as far as 7,000 years. Use of the modern double entry bookkeeping system was described by Luca Pacioli in 1494. The term " waste book "
4224-543: Is memorable for two major campaigns – in the south of India as part of a Pandyan war of succession, and a punitive strike against the kings of Ramanna ( Burma ) for various perceived insults to Sri Lanka. After his demise, Sri Lanka gradually decayed in power. In 1215, Kalinga Magha , an invader with uncertain origins, identified as the founder of the Jaffna kingdom, invaded and captured the Kingdom of Polonnaruwa . He sailed from Kalinga 690 nautical miles on 100 large ships with
4352-440: Is not by chance—because under the double-entry rules, whenever there is a posting, the debits of the posting equal the credits of the posting. If the two totals do not agree, an error has been made, either in the journals or during the posting process. The error must be located and rectified, and the totals of the debit column and the credit column recalculated to check for agreement before any further processing can take place. Once
4480-501: Is now known in Sinhala as Śrī Laṅkā ( Sinhala : ශ්රී ලංකා ) and in Tamil as Ilaṅkai ( Tamil : இலங்கை , IPA: [iˈlaŋɡaɪ] ). In 1972, its formal name was changed to "Free, Sovereign and Independent Republic of Sri Lanka". Later, on 7 September 1978, it was changed to the "Democratic Socialist Republic of Sri Lanka". As the name Ceylon still appears in the names of
4608-657: Is reimbursed periodically on satisfactory explanation of how it was spent. The balance of petty cash book is Asset . Journals are recorded in the general journal daybook. A journal is a formal and chronological record of financial transactions before their values are accounted for in the general ledger as debits and credits . A company can maintain one journal for all transactions, or keep several journals based on similar activity (e.g., sales, cash receipts, revenue, etc.), making transactions easier to summarize and reference later. For every debit journal entry recorded, there must be an equivalent credit journal entry to maintain
4736-414: Is still the primary means of payment (and store of value) for unbanked people with a low income and helps avoiding debt traps due to uncontrolled spending of money. It supports anonymity and avoids tracking for economic or political reasons. In addition, cash is the only means for contingency planning in order to mitigate risks in case of natural disasters or failures of the technical infrastructure like
4864-599: Is the cash book , which is similar to a checking account register (in UK: cheque account, current account), except all entries are allocated among several categories of income and expense accounts. Separate account records are maintained for petty cash, accounts payable and accounts receivable , and other relevant transactions such as inventory and travel expenses. To save time and avoid the errors of manual calculations, single-entry bookkeeping can be done today with do-it-yourself bookkeeping software. A double-entry bookkeeping system
4992-689: Is the first of the approximately 189 monarchs of Sri Lanka described in chronicles such as the Dīpavaṃsa , Mahāvaṃsa , Cūḷavaṃsa , and Rājāvaliya . Once Prakrit speakers had attained dominance on the island, the Mahāvaṃsa further recounts the later migration of royal brides and service castes from the Tamil Pandya kingdom to the Anuradhapura kingdom in the early historic period. The Anuradhapura period (377 BCE – 1017 CE) began with
5120-407: Is the recording of financial transactions, and is part of the process of accounting in business and other organizations. It involves preparing source documents for all transactions, operations, and other events of a business. Transactions include purchases, sales, receipts and payments by an individual person, organization or corporation. There are several standard methods of bookkeeping, including
5248-417: Is to record the financial effects of transactions. An important difference between a manual and an electronic accounting system is the former's latency between the recording of a financial transaction and its posting in the relevant account. This delay, which is absent in electronic accounting systems due to nearly instantaneous posting to relevant accounts, is characteristic of manual systems, and gave rise to
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5376-472: Is usually more centralized than before, the potential for abuse increases. On the other hand, the cash transactions are anonymous, unless purchasing profiles are recorded with the help of loyalty programs based on customer cards, and keep the payment landscape competitive. In August 2023, Chancellor of Austria Karl Nehammer came out in support for enshrining cash in the Austrian constitution . This came after
5504-622: The Balkan area and Kievan Rus also used marked silver bars for large payments. As the world economy developed and silver supplies increased, in particular after the colonization of South America, coins became larger and a standard coin for international payment developed from the 15th century: the Spanish and Spanish colonial coin of 8 reales . Its counterpart in gold was the Venetian ducat . Coin types would compete for markets. By conquering foreign markets,
5632-608: The Banque Royale . The relation between money supply and inflation was still imperfectly understood and the bank went under rendering its notes worthless, because they had been over-issued. The lessons learned were applied to the Bank of England , which played a crucial role in financing the Peninsular War against French troops, hamstrung by a metallic Franc de Germinal. The ability to create paper money made nation-states responsible for
5760-705: The Ceylon Civil Service and the legal, educational, engineering, and medical professions with natives. New leaders represented the various ethnic groups of the population in the Ceylon Legislative Council on a communal basis. Buddhist and Hindu revivalism reacted against Christian missionary activities. The first two decades in the 20th century are noted by the unique harmony among Sinhalese and Tamil political leadership, which has since been lost. The 1906 malaria outbreak in Ceylon actually started in
5888-482: The Chinese traveller monk Faxian ; Batadombalena (28,500 BP); and Belilena (12,000 BP) are the most important. In these caves, archaeologists have found the remains of anatomically modern humans which they have named Balangoda Man , and other evidence suggesting that they may have engaged in agriculture and kept domestic dogs for driving game. The earliest inhabitants of Sri Lanka were probably ancestors of
6016-900: The Democratic Socialist Republic of Sri Lanka , is an island country in South Asia . It lies in the Indian Ocean , southwest of the Bay of Bengal , separated from the Indian peninsula by the Gulf of Mannar and the Palk Strait . It shares a maritime border with the Maldives in the southwest and India in the northwest. Sri Lanka has a population of approximately 22 million and is home to several cultures, languages and ethnicities. The Sinhalese people form
6144-556: The European Central Bank (ECB) therefore requires to check the authenticity of deposited and withdrawn banknotes at bank counters and ATMs using tested devices and to trace the origin of suspected counterfeit banknotes to the account holder and physically seize it. Cashless society can be defined as one in which all financial transactions are handled through "digital" forms (debit and credit cards) in preference to cash (physical banknotes and coins). Cashless societies have been
6272-597: The Freedom Party of Austria campaigned on the idea. In 2023, The Swiss government supported moves to have a constitutional protection for cash. This came after a popular initiative asked for it. In June 2023, The Slovakian parliament voted with the support of 111 of 150 MPs to put the right to use Cash in the Constitution of Slovakia . The amendment was proposed by the Sme Rodina party. Bookkeeping Bookkeeping
6400-596: The Indian Plate , a major tectonic plate that was formerly part of the Indo-Australian Plate . It is in the Indian Ocean southwest of the Bay of Bengal , between latitudes 5° and 10° N , and longitudes 79° and 82° E . Sri Lanka is separated from the mainland portion of the Indian subcontinent by the Gulf of Mannar and Palk Strait . According to Hindu mythology , a land bridge existed between
6528-611: The Pali Canon , date to the fourth Buddhist council , which took place in 29 BCE. Also called the Pearl of the Indian Ocean , or the Granary of the East , Sri Lanka's geographic location and deep harbours have made it of great strategic importance, from the earliest days of the ancient Silk Road trade route to today's so-called maritime Silk Road . Because its location made it a major trading hub, it
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#17328442561476656-712: The Portuguese , the independent existence of the Jaffna kingdom came to an end. During the reign of the Rajasinha II , Dutch explorers arrived on the island. In 1638, the king signed a treaty with the Dutch East India Company to get rid of the Portuguese who ruled most of the coastal areas. The following Dutch–Portuguese War resulted in a Dutch victory, with Colombo falling into Dutch hands by 1656. The Dutch remained in
6784-672: The SAARC , the G77 and the Non-Aligned Movement , as well as a member of the United Nations and the Commonwealth of Nations . In antiquity, Sri Lanka was known to travellers by a variety of names. According to the Mahāvaṃsa , the legendary Prince Vijaya named the island Tambapaṇṇĩ (" copper-red hands" or "copper-red earth"), because his followers' hands were reddened by the red soil of
6912-573: The Sinhalese —to Kandy and built the Temple of the Tooth . In spite of on-going intermittent warfare with Europeans, the kingdom survived. Later, a crisis of succession emerged in Kandy upon king Vira Narendra Sinha 's death in 1739. He was married to a Telugu -speaking Nayakkar princess from South India ( Madurai ) and was childless by her. Eventually, with the support of bhikkhu Weliwita Sarankara and ignoring
7040-645: The Sri Lanka Armed Forces defeated the Liberation Tigers of Tamil Eelam . Sri Lanka is a developing country , ranking 78th on the Human Development Index . It is the highest-ranked South Asian nation in terms of development and has the second-highest per capita income in South Asia. The country has had a long history of engagement with modern international groups; it is a founding member of
7168-453: The Vedda people , an indigenous people numbering approximately 2,500 living in modern-day Sri Lanka. During the protohistoric period (1000–500 BCE) Sri Lanka was culturally united with southern India, and shared the same megalithic burials, pottery , iron technology, farming techniques and megalithic graffiti . This cultural complex spread from southern India along with Dravidian clans such as
7296-551: The Velir , prior to the migration of Prakrit speakers. One of the first written references to the island is found in the Indian epic Ramayana , which provides details of a kingdom named Lanka that was created by the divine sculptor Vishvakarma for Kubera , the God of Wealth. It is said that Kubera was overthrown by his rakshasa stepbrother, Ravana . According to the Mahāvaṃsa ,
7424-491: The single-entry and double-entry bookkeeping systems. While these may be viewed as "real" bookkeeping, any process for recording financial transactions is a bookkeeping process. The person in an organisation who is employed to perform bookkeeping functions is usually called the bookkeeper (or book-keeper). They usually write the daybooks (which contain records of sales, purchases, receipts, and payments), and document each financial transaction, whether cash or credit, into
7552-575: The 13th century, Marco Polo was amazed to find that people traded paper money for goods rather than valuable coins made of silver or gold. He wrote extensively about how the Great Kaan used a part of the Mulberry Tree to create the paper money as well as the process with which a seal was used to impress on the paper to authenticate it. Marco Polo also talks about the chance of forgery and states that someone caught forging money would be punished with death. In
7680-440: The 17th century, European countries started to use paper money in part due to a shortage of precious metals, leading to fewer coins being produced and put into circulation. At first, it was most popular in the colonies of European powers. In the 18th century, important paper issues were made in colonies such as Ceylon and the bordering colonies of Essequibo , Demerara and Berbice . John Law did pioneering work on banknotes with
7808-454: The Congress lost momentum towards the mid-1920s. The Donoughmore reforms of 1931 repudiated the communal representation and introduced universal adult franchise (the franchise stood at 4% before the reforms). This step was strongly criticised by the Tamil political leadership, who realised that they would be reduced to a minority in the newly created State Council of Ceylon , which succeeded
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#17328442561477936-589: The Crown, the coins, having received royal sanction, were struck as silver rupees; the inscription runs "The rupee of Bombaim", by the authority of Charles II. Around that time, coins were also being produced for the East India Company at the Madras mint. The Tamil the word for money is kaasu, which may have been modified into 'cash'. Both words, 'kaasu' and 'cash', have the same meaning, unlike money box. The currency at
8064-533: The IPKF in 1990. In October 1990, the LTTE expelled Sri Lankan Moors (Muslims by religion) from northern Sri Lanka. In 2002, the Sri Lankan government and LTTE signed a Norwegian-mediated ceasefire agreement. The 2004 Asian tsunami killed over 30,000 and displaced over 500,000 people in Sri Lanka. From 1985 to 2006, the Sri Lankan government and Tamil insurgents held four rounds of peace talks without success. Both LTTE and
8192-427: The Indian mainland and Sri Lanka. It now amounts to only a chain of limestone shoals remaining above sea level . Legends claim that it was passable on foot up to 1480 CE, until cyclones deepened the channel. Portions are still as shallow as 1 metre (3 ft), hindering navigation. The island consists mostly of flat to rolling coastal plains, with mountains rising only in the south-central part. The highest point
8320-626: The Netherlands might deliver Sri Lanka to the French, the British Empire occupied the coastal areas of the island (which they called the colony of British Ceylon ) with little difficulty in 1796. Two years later, in 1798, Sri Rajadhi Rajasinha , third of the four Nayakkar kings of Sri Lanka, died of a fever. Following his death, a nephew of Rajadhi Rajasinha, eighteen-year-old Kannasamy, was crowned. The young king, now named Sri Vikrama Rajasinha , faced
8448-453: The UK and several other countries) were written to pay money out of the account. Nowadays such transactions are mostly made electronically. Bookkeeping first involves recording the details of all of these source documents into multi-column journals (also known as books of first entry or daybooks ). For example, all credit sales are recorded in the sales journal; all cash payments are recorded in
8576-475: The account to be located in the general ledger. The equity section of the chart of accounts is based on the fact that the legal structure of the entity is of a particular legal type. Possibilities include sole trader , partnership , trust , and company . Computerized bookkeeping removes many of the paper "books" that are used to record the financial transactions of a business entity; instead, relational databases are used today, but typically, these still enforce
8704-405: The accounts balance, the accountant makes a number of adjustments and changes the balance amounts of some of the accounts. These adjustments must still obey the double-entry rule: for example, the inventory account and asset account might be changed to bring them into line with the actual numbers counted during a stocktake . At the same time, the expense account associated with use of inventory
8832-563: The area where he landed. In Hindu mythology , the term Lankā ("Island") appears but it is unknown whether it refers to the modern-day state. The Tamil term Eelam ( Tamil : ஈழம் , romanized: īḻam ) was used to designate the whole island in Sangam literature . The island was known under Chola rule as Mummudi Cholamandalam ("realm of the three crowned Cholas"). Ancient Greek geographers called it Taprobanā ( Ancient Greek : Ταπροβανᾶ ) or Taprobanē ( Ταπροβανῆ ) from
8960-468: The areas they had captured, thereby violating the treaty they had signed in 1638. The Burgher people , a distinct ethnic group, emerged as a result of intermingling between the Dutch and native Sri Lankans in this period. The Kingdom of Kandy was the last independent monarchy of Sri Lanka. In 1595, Vimaladharmasurya brought the sacred Tooth Relic —the traditional symbol of royal and religious authority amongst
9088-464: The arrival of Portuguese soldier and explorer Lourenço de Almeida , the son of Francisco de Almeida , in 1505. In 1517, the Portuguese built a fort at the port city of Colombo and gradually extended their control over the coastal areas. In 1592, after decades of intermittent warfare with the Portuguese, Vimaladharmasuriya I moved his kingdom to the inland city of Kandy , a location he thought more secure from attack. In 1619, succumbing to attacks by
9216-478: The bill posed a grave concern for the Tamil community, which perceived in it a threat to their language and culture. The Federal Party (FP) launched a movement of non-violent resistance ( satyagraha ) against the bill, which prompted Bandaranaike to reach an agreement ( Bandaranaike–Chelvanayakam Pact ) with S. J. V. Chelvanayakam , leader of the FP, to resolve the looming ethnic conflict. The pact proved ineffective in
9344-577: The case of cashless payment transactions, in addition to the documentation of the payment itself, the personal details of the payer are usually linked to the data of the payee according to the Know Your Customer (KYC) principle. This enables the payment process to be precisely traced for the payer and the payee. The constant increase in digitization leads to a more detailed recording of cashless payment transactions and their evaluation for advertising and marketing campaigns. Since this digital documentation
9472-559: The cash holding of cash (especially sight deposits) is roughly attributed to three motives: The transactions motive covers the business needs of economic subjects, the precautionary motive serves to hold money for liquidity purposes and to provide for crisis situations, and the speculation motive, according to John Maynard Keynes , results from the uncertainty about future interest rate developments and relates to financial investments. In addition to this purely economic importance, there are other aspects of cash use: In practice, there may be
9600-666: The cash in circulation in relation to the gross domestic product (cash to GDP ratio) is a good indicator of cash usage and payment behavior in an economy. In countries like the United States, increased use of debit and credit cards is increasing the amount of cash in circulation at a slower rate than in countries with a high amount of cash payments. In 2018, it ranged from 1.3% (in Sweden ) to more than 21% (in Japan), 10.5% in Switzerland and 10.7% in
9728-425: The cash payments journal. Each column in a journal normally corresponds to an account. In the single entry system , each transaction is recorded only once. Most individuals who balance their check-book each month are using such a system, and most personal-finance software follows this approach. After a certain period, typically a month, each column in each journal is totalled to give a summary for that period. Using
9856-443: The coffee plantations in 1869, destroying the entire industry within fifteen years. The British quickly found a replacement: abandoning coffee, they began cultivating tea instead. Tea production in Sri Lanka thrived in the following decades. Large-scale rubber plantations began in the early 20th century. By the end of the 19th century, a new educated social class transcending race and caste arose through British attempts to staff
9984-586: The company's Bombay and Bengal administrative regions was the rupee. At Madras, however, the company's accounts were reckoned in pagodas , fractions , fanams , faluce and cash . This system was maintained until 1818 when the rupee was adopted as the unit of currency for the company's operations. Paper money was first used in China during the Tang dynasty 500 years prior to it catching on in Europe. During his visit to China in
10112-510: The conquest led by king Parâkramabâhu VI 's adopted son, Prince Sapumal . He ruled the North from 1450 to 1467 CE. The next three centuries starting from 1215 were marked by kaleidoscopically shifting collections of capitals in south and central Sri Lanka, including Dambadeniya, Yapahuwa , Gampola , Raigama , Kotte , Sitawaka , and finally, Kandy . In 1247, the Malay kingdom of Tambralinga which
10240-438: The correct daybook—that is, petty cash book, suppliers ledger, customer ledger, etc.—and the general ledger . Thereafter, an accountant can create financial reports from the information recorded by the bookkeeper. The bookkeeper brings the books to the trial balance stage, from which an accountant may prepare financial reports for the organisation, such as the income statement and balance sheet . The origin of book-keeping
10368-472: The country based on the rule of law and amalgamated the Kandyan and maritime provinces as a single unit of government. An executive council and a legislative council were established, later becoming the foundation of a representative legislature. By this time, experiments with coffee plantations were largely successful. Soon, coffee became the primary commodity export of Sri Lanka. Falling coffee prices as
10496-447: The country for the first time in over a century. Upon his request, ordained monks were sent from Burma to Sri Lanka to re-establish Buddhism, which had almost disappeared from the country during the Chola reign. During the medieval period, Sri Lanka was divided into three sub-territories, namely, Ruhunu , Pihiti and Maya . Sri Lanka's irrigation system was extensively expanded during
10624-607: The course of the 26 year long conflict. 2019 Sri Lanka Easter bombings carried out by the terrorist group National Thowheeth Jama'ath on 21 April 2019 resulted in the brutal death of 261 innocent people. On 26 April 2019 an anti terrorist operation was carried out against the National Thowheeth Jama'ath by the Sri Lanka Army with the operation being successful and National Thowheeth Jama'ath's insurgency ending. Economic troubles in Sri Lanka began in 2019, when
10752-511: The credit institutions are preparing. Since cash holdings at banks do not earn interest and can also lead to security problems ( bank robbery ), banks usually only hold very small amounts of cash. They are therefore forced to involve the central bank in times of higher cash requirements. Therefore, the cash in circulation only remains unchanged if the banks hand over cash from their own cash holdings to their bank customers or take cash deposits from their customers into their own holdings. The ratio of
10880-591: The danger of not writing it down so that even if some of the monks whose duty it was to study and remember parts of the Canon for later generations died, the teachings would not be lost. After the council, palm-leaf manuscripts containing the completed Canon were taken to other countries such as Burma , Thailand , Cambodia and Laos . Sri Lanka was the first Asian country known to have a female ruler: Anula of Anuradhapura (r. 47–42 BCE). Sri Lankan monarchs undertook some remarkable construction projects such as Sigiriya ,
11008-520: The early 1900s, but the first case was documented in 1906. In 1919, major Sinhalese and Tamil political organisations united to form the Ceylon National Congress, under the leadership of Ponnambalam Arunachalam , pressing colonial masters for more constitutional reforms. But without massive popular support, and with the governor's encouragement for "communal representation" by creating a "Colombo seat" that dangled between Sinhalese and Tamils,
11136-650: The eldest son of the southern regional sub-king, Kavan Tissa , defeated Elara in the Battle of Vijithapura . During its two and a half millennia of existence, the Sinhala kingdom was invaded at least eight times by neighbouring South Indian dynasties such as the Chola , Pandya , and Pallava . There also were incursions by the kingdoms of Kalinga (modern Odisha ) and from the Malay Peninsula as well. The Fourth Theravāda Council
11264-445: The establishment of the Anuradhapura kingdom in 380 BCE during the reign of Pandukabhaya . Thereafter, Anuradhapura served as the capital city of the country for nearly 1,400 years. Ancient Sri Lankans excelled at building certain types of structures such as tanks , dagobas and palaces. Society underwent a major transformation during the reign of Devanampiya Tissa , with the arrival of Buddhism from India. In 250 BCE, Mahinda ,
11392-459: The eurozone. Since around 2018, exacerbated by the COVID-19 pandemic, cash in circulation in the eurozone has increased significantly while the share of cash payments (i.e. transactions) has decreased, known as the paradox of banknotes . Analyzes show that private households are increasingly keeping cash as a precaution against crises and that negative interest rates also play a role. This effect
11520-537: The face of ongoing protests by opposition and the Buddhist clergy. The bill, together with various government colonisation schemes , contributed much towards the political rancour between Sinhalese and Tamil political leaders. Bandaranaike was assassinated by an extremist Buddhist monk in 1959. Sirimavo Bandaranaike , the widow of Bandaranaike, took office as prime minister in 1960, and withstood an attempted coup d'état in 1962. During her second term as prime minister,
11648-415: The first South Asian country to liberalise its economy. Beginning in 1983 , ethnic tensions were manifested in an on-and-off insurgency against the government by the LTTE. An LTTE attack on 13 soldiers resulted in the start of a civil war, and in response anti-Tamil race riots took place, allegedly backed by Sinhalese hard-line ministers, which resulted in more than 150,000 Tamil civilians fleeing
11776-595: The first Sri Lankan president to resign in the middle of his term. On the same day the President's House was stormed, protesters besieged and stormed the private residence of the prime minister and burnt it down. After winning the 2022 Sri Lankan presidential election , on 21 July 2022, Ranil Wickremesinghe took oath as the ninth President of Sri Lanka. He implemented various economic reforms in efforts to stabilize Sri Lanka's economy, which has shown slight improvement since. On 23 September 2024, Anura Kumara Dissanayake
11904-525: The following exceptions in cash applications: Since 2016, the People's Bank of China has requested the recording of banknotes issued and deposited at ATMs and bank counters, arguing that counterfeit money will be prosecuted. However, the serial number is not a reliable indicator, because counterfeit banknotes mostly use serial numbers from real banknotes in circulation. In addition, damaged or scribbled banknotes may cause reading errors . With Directive ECB/2010/14,
12032-458: The gold ducat and the gold florin were still issued as trade coins: coins without a fixed value, going by weight. Colonial powers also sought to take away market share from Spain by issuing trade coin equivalents of silver Spanish coins, without much success. In the early part of the 17th century, English East India Company coins were minted in England and shipped to the East. In England, over time
12160-522: The government instituted socialist economic policies, strengthening ties with the Soviet Union and China, while promoting a policy of non-alignment. In 1971, Ceylon experienced a Marxist insurrection , which was quickly suppressed. In 1972, the country became a republic named Sri Lanka, repudiating its dominion status. Prolonged minority grievances and the use of communal emotionalism as an election campaign weapon by both Sinhalese and Tamil leaders abetted
12288-536: The government resumed fighting in 2006, and the government officially backed out of the ceasefire in 2008. In 2009, under the Presidency of Mahinda Rajapaksa , the Sri Lanka Armed Forces defeated the LTTE, bringing an end to the 26 year long civil war on 19 May 2009, and re-established control of the entire country by the Sri Lankan Government. Overall, between 60,000 and 100,000 people were killed during
12416-731: The island, seeking asylum in other countries. Lapses in foreign policy resulted in India strengthening the Tigers by providing arms and training. In 1987, the Indo-Sri Lanka Accord was signed and the Indian Peace Keeping Force (IPKF) was deployed in northern Sri Lanka to stabilise the region by neutralising the LTTE. The same year, the JVP launched its second insurrection in Southern Sri Lanka, necessitating redeployment of
12544-442: The issuing rulers would enjoy extra income from seigniorage (the difference between the value of the coin and the value of the metal the coin was made of). Successful coin types of high nobility would be copied by lower nobility for seigniorage. Imitations were usually of a lower weight, undermining the popularity of the original. As feudal states coalesced into kingdoms, imitation of silver types abated, but gold coins, in particular,
12672-402: The journal and records it into the corresponding accounts. The ledger also determines the balance of every account, which is transferred into the balance sheet or the income statement . There are three different kinds of ledgers that deal with book-keeping: A chart of accounts is a list of the accounts codes that can be identified with numeric, alphabetical, or alphanumeric codes allowing
12800-421: The ledger is called posting . Once the posting process is complete, accounts kept using the "T" format (debits on the left side of the "T" and credits on the right side) undergo balancing , which is simply a process to arrive at the balance of the account. As a partial check that the posting process was done correctly, a working document called an unadjusted trial balance is created. In its simplest form, this
12928-810: The legislative council. In 1937, Tamil leader G. G. Ponnambalam demanded a 50–50 representation (50% for the Sinhalese and 50% for other ethnic groups) in the State Council. However, this demand was not met by the Soulbury reforms of 1944–45. The Soulbury constitution ushered in dominion status , with independence proclaimed on 4 February 1948. D. S. Senanayake became the first Prime Minister of Ceylon . Prominent Tamil leaders including Ponnambalam and Arunachalam Mahadeva joined his cabinet. The British Royal Navy remained stationed at Trincomalee until 1956. A countrywide popular demonstration against withdrawal of
13056-586: The local king Vira Alakesvara of Gampola . Zheng He captured King Vira Alakesvara and later released him. Zheng He erected the Galle Trilingual Inscription , a stone tablet at Galle written in three languages ( Chinese , Tamil , and Persian ), to commemorate his visit. The stele was discovered by S. H. Thomlin at Galle in 1911 and is now preserved in the Colombo National Museum . The early modern period of Sri Lanka begins with
13184-643: The majority of the population, followed by the Sri Lankan Tamils , who are the largest minority group and are concentrated in northern Sri Lanka; both groups have played an influential role in the island's history. Other long-established groups include the Moors , Indian Tamils , Burghers , Malays , Chinese , and Vedda . Sri Lanka's documented history goes back 3,000 years, with evidence of prehistoric human settlements dating back 125,000 years. The earliest known Buddhist writings of Sri Lanka , known collectively as
13312-699: The management of inflation , through control of the money supply . It also made a direct relation between the metal of the coin and its denomination superfluous. From 1816, coins generally became token money , though some large silver and gold coins remained standard coins until 1927. The World War I saw standard coins disappear to a very large extent. Afterward, standard gold coins, mainly British sovereigns , would still be used in colonies and less developed economies and silver Maria Theresa thalers dated 1780 would be struck as trade coins for countries in East Asia until 1946 and possibly later locally. Cash has now become
13440-408: The most widely used payment instrument in the world and on all continents. In 17 out of 24 studied countries, cash represents more than 50% of all payment transactions, with Austria at 85%, Germany at 80%, France at 68%. The United Kingdom at 42%, Australia at 37%, United States at 32%, Sweden at 20%, and South Korea at 14% are among the countries with lower cash usage. By the 2010s, cash was no longer
13568-414: The mountainous interior, in a bid to escape his power. Sri Lanka never really recovered from the effects of Kalinga Magha's invasion. King Vijayabâhu III, who led the resistance, brought the kingdom to Dambadeniya . The north, in the meanwhile, eventually evolved into the Jaffna kingdom . The Jaffna kingdom never came under the rule of any kingdom of the south except on one occasion; in 1450, following
13696-427: The norms of bookkeeping including the single-entry and double-entry bookkeeping systems. Certified Public Accountants (CPAs) supervise the internal controls for computerized bookkeeping systems, which serve to minimize errors in documenting the numerous activities a business entity may initiate or complete over an accounting period. Sri Lanka Sri Lanka , historically known as Ceylon , and officially
13824-409: The only form of money, until Venetian merchants started using silver bars for large transactions in the early Middle Ages . In a separate development, Venetian merchants started using paper bills , instructing their banker to make payments. Similar marked silver bars were in use in lands where the Venetian merchants had established representative offices. The Byzantine Empire and several states in
13952-502: The preferred method of payment in the United States. In 2016, the United States User Consumer Survey Study reported that three out of four of the participants preferred a debit or credit card payment instead of cash. Some nations have contributed to this trend, by regulating what type of transactions can be conducted with cash and setting limits on the amount of cash that can be used in a single transaction. Cash
14080-408: The primary books of accounts—cash book, purchase book, sales book, etc.—for immediately documenting a financial transaction. In the normal course of business, a document is produced each time a transaction occurs. Sales and purchases usually have invoices or receipts . Historically, deposit slips were produced when lodgements (deposits) were made to a bank account ; and checks (spelled "cheques" in
14208-546: The reign of Parākramabāhu the Great (1153–1186). This period is considered as a time when Sri Lanka was at the height of its power. He built 1,470 reservoirs – the highest number by any ruler in Sri Lanka's history – repaired 165 dams, 3,910 canals, 163 major reservoirs, and 2,376 mini-reservoirs. His most famous construction is the Parakrama Samudra , the largest irrigation project of medieval Sri Lanka. Parākramabāhu's reign
14336-437: The rice rations resulted in the resignation of prime minister Dudley Senanayake . S. W. R. D. Bandaranaike was elected prime minister in 1956. His three-year rule had a profound influence through his self-proclaimed role of "defender of the besieged Sinhalese culture". He introduced the controversial Sinhala Only Act , recognising Sinhala as the only official language of the government. Although partially reversed in 1958,
14464-521: The right of "Unambuwe Bandara" , the crown passed to the brother of one of Narendrasinha's princesses, overlooking Narendrasinha's own son by a Sinhalese concubine . The new king was crowned Sri Vijaya Rajasinha later that year. Kings of the Nayakkar dynasty launched several attacks on Dutch controlled areas, which proved to be unsuccessful. During the Napoleonic Wars , fearing that French control of
14592-495: The rise of militancy. The assassination of Jaffna Mayor Alfred Duraiyappah in 1975 by the Liberation Tigers of Tamil Eelam (LTTE) marked a crisis point. The government of J. R. Jayawardene swept to power in 1977, defeating the United Front government. Jayawardene introduced a new constitution , together with a free-market economy and a powerful executive presidency modelled after that of France. It made Sri Lanka
14720-554: The rules of double-entry, these journal summaries are then transferred to their respective accounts in the ledger , or account book . For example, the entries in the Sales Journal are taken and a debit entry is made in each customer's account (showing that the customer now owes us money), and a credit entry might be made in the account for "Sale of class 2 widgets" (showing that this activity has generated revenue for us). This process of transferring summaries or individual transactions to
14848-451: The so-called "Fortress in the Sky", built during the reign of Kashyapa I , who ruled between 477 and 495. The Sigiriya rock fortress is surrounded by an extensive network of ramparts and moats. Inside this protective enclosure were gardens, ponds, pavilions, palaces and other structures. In 993 CE, the invasion of Chola emperor Rajaraja I forced the then Sinhalese ruler Mahinda V to flee to
14976-493: The southern part of Sri Lanka. Taking advantage of this situation, Rajendra I , son of Rajaraja I, launched a large invasion in 1017. Mahinda V was captured and taken to India, and the Cholas sacked the city of Anuradhapura causing the fall of Anuradhapura kingdom . Subsequently, they moved the capital to Polonnaruwa . Following a 17-year-long campaign, Vijayabahu I successfully drove the Chola out of Sri Lanka in 1070, reuniting
15104-701: The suspension of fuel to all non-essential vehicles, and more such economic disorder. Due to the crisis, massive street protests erupted all over the country, with protesters demanding the resignation of the President Gotabaya Rajapaksa . The protests culminated with the storming and siege of the President's House on July 9, 2022, and resulted in President Gotabaya Rajapaksa fleeing to Singapore and later emailing his resignation to parliament, formally announcing his resignation and making him
15232-467: The word Tambapanni . The Persians and Arabs referred to it as Sarandīb (the origin of the word " serendipity ") from Sanskrit Siṃhaladvīpaḥ . Ceilão , the name given to Sri Lanka by the Portuguese when they arrived in 1505, was transliterated into English as Ceylon . As a British crown colony , the island was known as Ceylon; it achieved independence as the Dominion of Ceylon in 1948. The country
15360-466: The word cash was adopted from Sanskrit कर्ष karsa, a weight of gold or silver but akin to the Old Persian 𐎣𐎼𐏁 karsha, unit of weight (83.30 grams). East India Company coinage had both Urdu and English writing on it, to facilitate its use within the trade. In 1671, the directors of the East India Company ordered a mint to be established at Bombay , known as Bombaim. In 1677 this was sanctioned by
15488-594: Was a vassal of Sri Vijaya led by their king Chandrabhanu briefly invaded Sri Lanka from Insular Southeast Asia . They were then expelled by the South Indian Pandyan dynasty. However, this temporary invasion reinforced the steady flow of the presence of various Austronesian merchant ethnic groups, from Sumatrans (Indonesia) to Lucoes (Philippines) into Sri Lanka which occurred since 200 BCE. Chinese admiral Zheng He and his naval expeditionary force landed at Galle, Sri Lanka in 1409 and got into battle with
15616-567: Was already known to both East Asians and Europeans as long ago as the Anuradhapura period . During a period of great political crisis in the Kingdom of Kotte , the Portuguese arrived in Sri Lanka and sought to control its maritime trade, with a part of Sri Lanka subsequently becoming a Portuguese possession . After the Sinhalese–Portuguese War , the Dutch colonial empire and the Kingdom of Kandy took control of those areas. Dutch Ceylon
15744-636: Was destroyed by Bakhtiyar Khalji . It is probable that many of the scriptures from Nalanda are preserved in Sri Lanka's many monasteries and that the written form of the Tripiṭaka , including Sinhalese Buddhist literature, were part of the University of Nalanda. In 245 BCE, bhikkhunī Sanghamitta arrived with the Jaya Sri Maha Bodhi tree, which is considered to be a sapling from the historical Bodhi Tree under which Gautama Buddha became enlightened. It
15872-591: Was exiled to India. The Kandyan Convention formally ceded the entire country to the British Empire. Attempts by Sri Lankan noblemen to undermine British power in 1818 during the Uva Rebellion were thwarted by Governor Robert Brownrigg . The beginning of the modern period of Sri Lanka is marked by the Colebrooke–Cameron reforms of 1833. They introduced a utilitarian and liberal political culture to
16000-496: Was held at the Anuradhapura Maha Viharaya in Sri Lanka under the patronage of Valagamba in 25 BCE. The council was held in response to a year in which the harvests in Sri Lanka were particularly poor and many Buddhist monks subsequently died of starvation. Because the Pali Canon was at that time oral literature maintained in several recensions by dhammabhāṇaka s ( dharma reciters), the surviving monks recognised
16128-400: Was sworn in as Sri Lanka's new president after winning the presidential election as a left-wing candidate. On 14 November 2024, President Anura Kumara Dissanayake's National People's Power (NPP), a left-leaning alliance, received a two-thirds majority in parliament in Sri Lankan parliamentary election. Sri Lanka, an island in South Asia shaped as a teardrop or a pear/ mango , lies on
16256-434: Was taken by the British Empire , which extended control over the whole island, colonising it as British Ceylon from 1815 to 1948. A national movement for political independence arose in the early 20th century, and 1948, Ceylon became a dominion . It was succeeded by the republic of Sri Lanka in 1972. Sri Lanka's more recent history was marred by the 26-year Sri Lankan Civil War , which began in 1983 and ended in 2009, when
16384-400: Was used in colonial America, referring to the documenting of daily transactions of receipts and expenditures. Records were made in chronological order, and for temporary use only. Daily records were then transferred to a daybook or account ledger to balance the accounts and to create a permanent journal; then the waste book could be discarded, hence the name. The primary purpose of bookkeeping
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