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33 lines
960 B
33 lines
960 B
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<pre>
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A double entry system stores both values (and makes teh transaciton balance):
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double entry states that value1+value2+value3+ ... = 0
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where each value is recorded in a different account.
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A value is value=exch-rate*amount (for currency accounts)
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value=price*num-shares (for stocks/mutual-funds)
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Thus, buying a widget in japan and using dollars to pay for it would appears
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like so:
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SpendAcct: (an oridnary bank/cash acct valued in USD)
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----------
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Date xfer from memo cost
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1/5/99 [YenAcct] Buy widget $1.00
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YenAcct: (a currency trading account valued in yen)
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--------
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Date xfer from memo purchase rate
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1/5/99 [SpendAcct] Buy widget Y150 0.00667
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The engine links together all three of these values (1.0, 150, 0.00667)
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permanently and makes it imposssible to change one without changing another,
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so that the grand total is always zero.
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</pre>
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