1 file: suppose.ppt revised 7/27/98 data-pattern index suppose pacioli had a computer how accounting...

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1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998, Wesley C. Sampson Data-Pattern Index [email protected] U.S. Patent # 5,390,113 Related patents in US and six other nations

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Page 1: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

1File: Suppose.ppt Revised 7/27/98

Data-Pattern IndexData-Pattern Index

Suppose Pacioli Had a Computer

How Accounting Theory Fits

Electronic Media Better Than Paper

© 1998, Wesley C. SampsonData-Pattern [email protected]

U.S. Patent # 5,390,113Related patents in US andsix other nations

Page 2: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

2File: Suppose.ppt Revised 7/27/98

IntroductionIntroduction

Revolutionary visual of accounting flow Patterns create information Key relationships immediately apparent Identify exceptions and major transaction

flows

Page 3: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

3File: Suppose.ppt Revised 7/27/98

Logic Concerns Logic Concerns

Funds-FlowReports

CostAccounting

IncomeStatement

Activities

Balance Sheet

Balances

Working Trial Balance

Transaction Layers

Page 4: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

4File: Suppose.ppt Revised 7/27/98

Posting requires relatively expensive sort and copy operations SQL is weak working with adjacent records Whole transactions not tabulated and indexed

Computing loadComputing load

Data Collection Financial ReportsWorking Trial Balances

Weakness here

Page 5: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

5File: Suppose.ppt Revised 7/27/98

Transaction LayersTransaction Layers

700

Cash AccountsReceivable

Furniture &Equipment

AccountsPayable

Capital Revenue AdvertisingExpense

Rent Expense

SuppliesExpense

504

dr cr

200

500

502

dr cr

1000

1000

1000

500

dr cr

500

500

1000

1000

400

dr cr

10600

10600

10600

Drawing

302

dr cr

9600

9600

9600

300

dr cr23500

23500

23500

200

dr cr2000

1000

500

2200

22003500

1300

103

dr cr6000

1500

7500

7500

101

dr cr4500

4500

10600

151004500

10600

100

dr cr1500

1000

500

2200

200

4500

1000

9600

1950014700

4800

OpeningBalance

Index # 1

2

4

5

6

7

8

9

Trial Balance

ClosingBalance

3

Accounts/Links

Transactions/Time

700

Page 6: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

6File: Suppose.ppt Revised 7/27/98

Trial Balance

Transaction LayersTransaction Layers

700

Cash AccountsReceivable

Furniture &Equipment

AccountsPayable

Capital Revenue AdvertisingExpense

Rent Expense

SuppliesExpense

504

dr cr

502

dr cr

1000

1000

1000

500

dr cr

500

1000

1000

400

dr cr

10600

10600

Drawing

302

dr cr

9600

9600

300

dr cr23500

23500

23500

200

dr cr2000

500

22003500

1300

103

dr cr6000

7500

7500

101

dr cr4500

151004500

10600

100

dr cr1500

500

9600

4800

OpeningBalance

5

6

7

9

ClosingBalance

200

500500

10600

9600

1000

2200

1500

4500

10600

1000

2200

200

4500

1000

1950014700

IndexRecord # 1

2

4

8

3

Accounts/Links

Transactions/Time

700

Page 7: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

7File: Suppose.ppt Revised 7/27/98

Exhibit 1: 13 Journal EntriesExhibit 1: 13 Journal EntriesEntry Account Title Debit Credit

1 502100

Rent ExpenseCash

10001000

2 103100200

Furniture & EquipmentCashAccounts Payable

1500500

1000

3 500200

Advertising ExpenseAccounts Payable

200200

4 200100

Accounts PayableCash

20002000

5 200100

Accounts PayableCash

200200

6 504100

Supplies ExpenseCash

200200

Page 8: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

8File: Suppose.ppt Revised 7/27/98

Exhibit 1 (cont’d)Exhibit 1 (cont’d)

Entry Account Title Debit Credit

7 100101

CashAccounts Receivable

45004500

8 101400

Accounts ReceivableService Revenue

76007600

9 500504100

Advertising ExpenseSupplies Expense

Cash

500500

1000

10 500200

Advertising ExpenseAccounts Payable

300300

11 101400

Accounts ReceivableService Revenue

30003000

12 302100

DrawingCash

78007800

13 302100

DrawingCash

20002000

Page 9: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

9File: Suppose.ppt Revised 7/27/98

Exhibit 2: Computer IndexExhibit 2: Computer IndexIndexRecord#

Account NumberDebit(d) or credit(c)

Transaction $ amountsper account

Count JournalEntry ID

1 502d 100c 1000 1000 1 1

2 103d 100c 200c 1500 500 1000 1 2

3 500d 200c 500 500 2 10,3

4 200d 100c 2200 2200 2 5,4

5 504d 100c 200 200 1 6

6 100d 101c 4500 4500 1 7

7 101d 400c 10600 10600 2 11,8

8 504d 505d 100c 500` 500 1000 1 9

9 302d 100c 9800 9800 2 13,12

Page 10: 1 File: Suppose.ppt Revised 7/27/98 Data-Pattern Index Suppose Pacioli Had a Computer How Accounting Theory Fits Electronic Media Better Than Paper © 1998,

10File: Suppose.ppt Revised 7/27/98

Cash AccountsReceivable

Furniture &Equipment

AccountsPayable

Capital Drawing Revenue AdvertisingExpense

RentExpense

SuppliesExpense

100 101 103 200 300 302 400 500 502 504

OpeningBalance

dr cr15000

dr cr4500

dr cr6000

dr cr2000

dr cr23500

dr cr dr cr dr cr dr cr dr cr

IndexRecord # 1

1000 1000

2 500 1500 1000

3 500 500

4 2200 2200

5 200 200

6 4500 4500

7 10600 10600

8 1000 500 500

9 9800 9800

TrialBalance

1950014700

151004500

7500 22003500 23500

980010600

1000 1000 700

ClosingBalance

4800 10600 7500 1300 23500 9800 10600 1000 1000 700

Exhibit 3Exhibit 3