Creating a Double Entry Accounting Module
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As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
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As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
1. Find a CPA 2. Offer money, :baaaa!:, :beer:, or anything else of value in exchange for knowledge. Or, as the old joke goes about asking a CPA, "What's two plus two?" CPA looks over his shoulders, draws the blinds, leans in and whispers, "What do you want it to be?" Accounting is voodoo.
Christopher Duncan
www.PracticalUSA.com
Author of The Career Programmer and Unite the Tribes
Copywriting Services -
As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
Do you understand how an old fashioned ledger book works?
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave
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As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
Start off by gathering user requirements. It's not enough to say double entry accounting system; your client needs to come up with a great deal more information if you are coming up with a custom solution. I assume you are running your own company; if so, you need to learn to get more detail from a client otherwise you are both going to end up being disappointed.
"WPF has many lovers. It's a veritable porn star!" - Josh Smith
As Braveheart once said, "You can take our freedom but you'll never take our Hobnobs!" - Martin Hughes.
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As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
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Do you understand how an old fashioned ledger book works?
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave
Yeah, I hate those. They force me to make two mistakes to get the books to balance. :wtf: :laugh:
CQ de W5ALT
Walt Fair, Jr., P. E. Comport Computing Specializing in Technical Engineering Software
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Do you understand how an old fashioned ledger book works?
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave
Same way as my current software - I pay an accountant to deal with it!
Christopher Duncan
www.PracticalUSA.com
Author of The Career Programmer and Unite the Tribes
Copywriting Services -
As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
Here is the graphic I always start with:
DR
CR
EXPENSES
DIRECT
INDIRECT
ASSETS
FIXED
CURRENT
INCOME
DIRECT
INDIRECT
LIABILITIES
CAPITAL
LIABILITIES
The income and expense accounts is your PL. The difference between your income and your expense is your profit. Direct income is usually sales of goods or service, and indirect income is stuff like interest on checking account. Direct expense is stuff like cost of sales, whereas indirect expense might be moving costs. Fixed assets include buildings, plant and machinery; current assets include bank accounts. Capital is long term loans and profit from the previous year's close. Liabilities include short term loans - basically, if you were to close down your company today, assets are things that would generate cash, and liabilities are things that you would have to pay off. Don't think of debit and credit postings - think of + and - postings. So a + posting to an income account is a good thing, but a + posting to an asset account is also a good thing (even tho one is a debit and the other is a credit). You don't always increase the debits and the credits by the same amount within a transaction. For example, if you were posting a sale, then you would create an invoice transaction which increases the direct income account and also the checking account (or more likely the accounts receivable control account - also an asset), but you would also create a cost-of-sale transaction which increases the cost-of-sale expense account and reduces the stock-on-hand asset account by the same amount:
DR
CR
EXPENSES
DIRECT
Cost of Sales +$100
INDIRECT
ASSETS
FIXED
Checking +$120
Stock on hand -$100
CURRENT
INCOME
DIRECT
Sales +$120
INDIRECT
LIABILITIES
CAPITAL
LIABILITIES
However, the batch (composed of both transactions) increases both the debits and the credits by
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As a part of the application development(asp.net) I have to create a double entry accounting system. However my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin? Cheers to all
Tapas Shome System Software Engineer Keen Computer Solutions 1408 Erin Street Winnipeg, Manitoba Canada R3E 2S8 http://www.keencomputer.com www.ias-research.com/blog
keencomputer wrote:
my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin?
Begin with a 96-second Wikipedia search. Then a 192-second Wikipedia search. Then a 384-second Wikipedia search. Etc. If you run into something you really can't understand or figure out, ask a question in the appropriate forum. If you're not willing to make an effort and try to do it for yourself, asking general questions here will not be of any use to you, because it's you who has to do the work, so perhaps you should consider other alternatives. Note: In case there is any miscomprehension, "perhaps you should consider other alternatives" translates to "just **** off".
I wanna be a eunuchs developer! Pass me a bread knife!
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keencomputer wrote:
my accounting knowledge is about 48 second of Wikipedia search of double entry accounting system. Where should I begin?
Begin with a 96-second Wikipedia search. Then a 192-second Wikipedia search. Then a 384-second Wikipedia search. Etc. If you run into something you really can't understand or figure out, ask a question in the appropriate forum. If you're not willing to make an effort and try to do it for yourself, asking general questions here will not be of any use to you, because it's you who has to do the work, so perhaps you should consider other alternatives. Note: In case there is any miscomprehension, "perhaps you should consider other alternatives" translates to "just **** off".
I wanna be a eunuchs developer! Pass me a bread knife!
Since he's obviously not up to doing his work, he's probably got nothing better to do.
I wanna be a eunuchs developer! Pass me a bread knife!