The current paper examines the concept of Accounting as revealed in the Arthaśāstra of Kauṭilya from different points of view.In this regard we have tried to discuss in short on these fields: Concept of Income, Additional Income during Inflation, Preparing Good Accounting Reports, Design of Accounts, Embezzlement of State Revenue, Village Administration and Accounting. Accounts are to be prepared by dividing the total period into different days. After a careful consideration of the accounts, it will be easy to understand that the modern ledger Accounts show a mere technical improvement over the ancient ones and modern accounts are never new from the core.This discussion may draw the attention of the readers to have an idea about what a great Sanskrit scholar was Kauṭilya in ancient times.