Ledger Accounting Research Articles

An Applying Colored Petri Net for Computerized Accounting System and Ledger Accounts Instruction

Many learners who are not familiar with the accounting terms find blended learning very complex to understand with respect to the computerized accounting system, the journal entries process, and tracing the accounting transaction flows of accounting system. A simulation-based model is a viable option to help instructors and learners make understanding the accounting system components and monitoring the accounting transactions easier. This paper proposes a colored Petri net (CPN)-based model for the instruction of an accounting system focused on the journal entries processes, accounting modules, and accounting transaction flows. The CPN-based language and the model checking tool named CPN are used to represent the accounting system components: a chart of accounts, an account mapping profile, the journal and ledgers system, and the financial report creations. We evaluated the designed CPN models by creating the simulation cases from ground truth data of the retail department store system and the mortgage loan system, using the decision-table-based testing technique. The results show that the designed CPN model and provided simulation cases help the learners to animate, verify, trace back accounting transactions and data flows, and increase the learner’s understanding.

Pelatihan Penyusunan Laporan Keuangan Perusahaan Perdagangan Dan Manufaktur Dalam Rangka Peningkatan Kapasitas UMKM Di DKI Jakarta

Based on a report from the Ministry of Communication and Information, the number of MSME business actors in Indonesia in 2015 has reached + 59 million people and contributes to Gross Domestic Product (GDP) of 55%, it is expected that in 2019 the number will reach more than 60 million people. This very large number certainly requires special attention from the Government towards MSME business actors. One of the problems that are often experienced by MSMEs in Indonesia is that MSMEs do not keep books of business transactions properly. Financial reports are needed by business actors to determine the benefits obtained, to find out the total assets owned, it is necessary to submit additional capital to creditors. The use of an excel-based general ledger (GL) accounting program will make it easier for MSME entrepreneurs to compile these financial reports.

Computational Cost Reduction of Transaction Signing in Blockchain

Nowadays, Blockchain is a disruptive technology, particularly in the financial context. Moreover, Blockchain is behind the success of cryptocurrencies, e.g., Bitcoin and Ethereum. Unlike traditional currencies, cryptocurrencies are entirely virtual. There is no physical money, but it can directly make payments in digital currency from one person to another without intermediaries. Moreover, Hashing's cryptographic algorithm makes Blockchain resist tampering from any transacting participants because the submitted block cannot be altered or re-engineered. However, another big problem is how users of cryptocurrencies stop somebody from adding or editing a transaction that spends someone else's money to them. To do this, Blockchain needs another cryptosystem called Public/Private Keys, a primitive asymmetric cryptosystem, e.g., the RSA encryption, to sign the transactions for proving the authenticity of the ownership without revealing the signed secret information. The generated public key is regarded as a ledger account number or digital wallet of the sender and the recipient. Simultaneously, the paired private keys are used to identify whether the digital wallets' owners are authentic. As growing network entities and propagated Blockchain transactions, computing millions of replicated tokens in the blocks to sign and verify the digital wallet's ownership is computationally expensive. However, a certain of chosen arithmetical transformations that can simplify mathematical cost can significantly reduce computational complexity. This research's main contribution is developing a protocol that can reduce the complexity and mathematical cost in generating the digital wallet and verifying its authenticity of ownership. Finally, performance analyses of the RSA algorithm for the protocol have been measured and visualized using Python.

The Economic Problem: From Barter to Commodity Money to Electronic Money

The success of alternative payment systems has led to discussion of various proposals to replace money with a new technology-based system, though many lack a clear idea of what exactly is the “money” they seek to replace. We begin by presenting the explanation of money’s role in the economy embraced by most mainstream economists and policy analysts, based on the idea that money evolved out of the process of market exchange. An alternative explanation that looks on money as a part of the organization of production and distribution based on network clearing systems across balance sheets expressed in a common unit of account is then presented, distinguishing between a purely notional unit of account and means of settlement or discharge of debt. The final section addresses the possibility of a fundamentally different modern extension of this alternative approach that is not inspired by digital technology, distributed ledger accounting, or application operating on a mobile/cell phone system, but rather the actually existing system available from an internet telephone service provider that currently offers subsidiary domestic and international payment services whose operating procedures come close to replicating the alternative explanation of money mentioned above, with the potential to provide all the services of the existing payments system at lower costs and greater stability.

Shared Ledger Accounting — Implementing the Economic Exchange pattern

Distributed Ledger Technology (DLT) suggests a new way to implement Accounting Information Systems, but an ontologically sound consensus-based design is missing to date. Against this research gap, the paper introduces a DLT-based shared ledger solution in a formal way and compliant with Financial Reporting Standards. We build on the COFRIS accounting ontology (grounded on UFO) and the blockchain ontology developed by De Kruijff & Weigand that distinguishes between a Datalogical level, an Infological and an Essential (conceptual) level. It is shown how both consensual and enterprise-specific parts of the business exchange transaction can be represented in a concise way, and how this pattern can be implemented using Smart Contracts. It is argued that the proposed Shared Ledger Accounting system increases the quality of the contents from an accounting perspective as well as the quality of the system in terms of auditability and interoperability.

THE OLD DU PONT COMPANY'S ACCOUNTING SYSTEM LASTING A HUNDRED YEARS: AN OVERLOOKED ACCOUNTING SYSTEM

ABSTRACT Accounting historians have not yet realized that there existed another complete accounting system before the formation of the modern accounting system of today which Johnson and Kaplan's Relevance Lost characterizes by the “integration” of cost and financial accounts supported by “inventory costing.” In that earlier accounting system, cost and profit calculations were made in a past particular ledger account or accounts, namely trading account(s), where accounting practices opposed to “inventory costing” and “integration” were used. The historical existence of that accounting system is overlooked by accounting historians. The example of the old Du Pont Company (DPC) this paper presents will bring it to light. Cost and profit calculation were made in four trading accounts in the double-entry ledger at the old DPC as it was purchased by the new DPC in 1902. One of its trading accounts dated back to 1804 when the old DPC started production of gunpowder. Early cost and profit calculations in that trading account were examined by the new DPC's staff in the early 1940s. They prepared schedules showing the cost data, sales revenues, and profit measurement recorded in the early trading account. These schedules give evidence that the old DPC recorded the costs incurred and used the cost data to compute profit for financial accounting purposes, but in different ways from today's “inventory costing” and “integration.” This old DPC's accounting system resulted from the application of the double-entry system to industrial accounting and was in use throughout the nineteenth century. By revealing the historical existence of that overlooked accounting system, this paper will show that accounting history may be described as evolution of the traditional accounting system made through double-entry bookkeeping in which the trading account was of vital importance and the transition from that traditional accounting system to the modern integrated accounting system supported by inventory costing.

Development Support of Business Application Based on Enterprise Application Ongology

In this paper, we propose a supporting method for developments of Web applications in order to support communication between users and developers. Our method combines three-layer architecture modeling of Web application and knowledge sharing technologies based on ontologies. The ontologies, which are used in the method and called enterprise application ontology (EAO), enable users and developers to form common understanding about system specification. EAO covers three aspects (legal aspect, business process, and software design) of business which is a candidate of development of a Web application. EAO includes three ontologies constructed from each of the three aspects. Concepts and structure of EAO are applied on page transition models, which are called Web Process Architecture, of a Web application. As a case study, we applied our method for a development of a ledger accounting system in a local government. And we confirmed that our method could support the development on the business analysis phase.

WHERE'S THE “R” IN DEBIT?

The common abbreviation for the accounting term “debit” is a puzzling one—“Dr.” Today, particularly with our depersonalized treatment of the accounting or bookkeeping “debit,” there is no obvious clue as to why there is an “r” in “debit” at all. An investigation of the history and evolution of the “debit” in bookkeeping reveals the reason for the abbreviation—a reason almost totally lost without historical perspective. Whereas the accounting “debit” is now viewed as a “technical” term, devoid of any value considerations, referring simply to the left side of a journal entry or ledger account, this was not always the case. Originally, “debits” did have a “bad” side. They were used to record the debts of the merchant or businessman. Debits were debtors. And the abbreviation for “debtor” is “Dr.”

An integrated computer-based system for financial and managerial decisions

The purpose of this paper is to develop a model that can be used to make both financial and managerial decisions relating to production in a manufacturing enterprise. To build a model of this type several questions must be addressed. Among the more relevant ones are : (1) What information to capture ; (2) how to build a data base of this captured information; (3) how to use this captured information and (4) how to process this captured information in a form that is useful to both financial and production managers. Two types of information need to be captured. First, financial accounting information will be needed so that financial statements that meet Generally Accepted Accounting Principles (GAAP) criteria can be produced. Second, managerial accounting information will be needed so that managers can make decisions concerning planning, control and the evaluation of performance. Since this data overlaps, the accounting department can be given the responsibility of collecting all the relevant information. These data would include information on raw materials (both purchases and requisitions), labor (both direct and indirect), and all factory overhead costs. The information described above must now be used to build three data bases (see Table I). The first data base, the Standard Data Base, includes the standards agreed upon by management during the planning phase. These standards are usually related to capacity utilization and are formulated for all relevant production variables. Thus, this data base would include information on standard quantities and standard prices for raw materials and direct labor as well as a standard application rate to be used for factory overhead. The second data base is the General Ledger. It includes the actual quantities and prices for the production variables (raw materials, direct labor and factory overhead). As invoices for raw materials are received from vendors, the general ledger accounts of raw materials inventory and accounts payable are updated. In addition, as requisitions from production are received the actual prices and quantities of the raw materials used are captured and stored. As time-cards from production workers are received in accounting, the payroll account in the general ledger is updated. Also, total direct labor (actual hours worked multiplied by the actual labor rate) is transferred to the direct labor account. Information on factory overhead is derived from many sources. Utility bills, tax bills, administrative salaries and allocations for depreciation are just a few. As these documents are received, or as information concerning these variables becomes known, the factory overhead account in the general ledger will be updated. The third data base, the Production Data

The design of entity-relationship models for general ledger systems

General ledger systems, though not often discussed in the database literature, are fundamental to the operation of any business and illustrate many of the subtleties of database design. We present here an application of the entity-relationship model design methodology to general ledger systems. Introductions to the terminology of both entity-relationship models and general ledger accounting systems are given, in order to make the paper relatively self-contained.

Audit Sample Sizes for Aggregated Statement Accounts

audit function as it usually relates to public companies culminates in the expression of an opinion on the fairness of the financial statements of an organization. This opinion concerns the financial statement totals, as well as the individual account balances that comprise them. Net income, net assets, and total current assets are examples of aggregated amounts that are often as important as or more important than the accounts comprising them. In addition to this type of aggregation, individual statement amounts - such as cash, accounts receivable, and inventory - are aggregations of related general ledger accounts. Even the individual ledger account may be an aggregation of different groups of elements. These groups may be defined on the basis of a characteristic of the elements. For example, the inventory account may consist of many types of units. Also, the audit sampling process itself may result in a classification system for individual ledger account elements. For example, stratified sampling might be used to preclassify elements by reported dollar amounts. Because of these facts, the auditor should relate his statistical sampling process to testing for fairness of reported amounts at all levels of aggregation. AICPA Auditing Standards Executive Committee recognized this necessity of considering the aggregate effects of statistical testing in its Statement on Auditing Standards: The upper precision limit for errors in an individual substantive test should be established so as to be consistent with the overall audit objective to obtain reasonable assurance that the financial statements taken as a whole are not materially

A Babylonian Ledger Account of Reeds and Wood (HLC. PL. 16)

A Babylonian Ledger Account of Reeds and Wood (HLC. PL. 16)