Your callback syntax is incorrect for Bootstrap 3.
$(document).ready(function(){
$('#accordion').on('shown.bs.collapse', function () {
$(".accordion-down").removeClass("accordion-down").addClass("accordion-up");
});
$('#accordion').on('hidden.bs.collapse', function () {
$(".accordion-up").removeClass("accordion-up").addClass("accordion-down");
});
});
http://getbootstrap.com/javascript/#collapse-usage
Here's a simpler version combining events in a single function and toggling classes:
$(function() { // shorthand for document.ready
$('#accordion').on('shown.bs.collapse hidden.bs.collapse', function () {
$('.accordion-down, .accordion-up').toggleClass('accordion-down accordion-up');
});
});