1 file: suppose.ppt revised 7/27/98 data-pattern index suppose pacioli had a computer how accounting...
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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
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
3File: Suppose.ppt Revised 7/27/98
Logic Concerns Logic Concerns
Funds-FlowReports
CostAccounting
IncomeStatement
Activities
Balance Sheet
Balances
Working Trial Balance
Transaction Layers
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
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
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
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
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
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
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