Viewing profile — omichowdhury

I completely forgot what the original post I was replying to was about lol. If it was about lemonade then yup the lemons and the lemonade should be on the books as assets. I’ve als…

I guess technically this would be selling a service instead of a good. I was going through the 4 combinations of balanced two-line entries, based on the accounting equation, to sho…

Haha that sounds like shut-up-and-calculate to me. The alternative is to update the rules to use our intuition on whether the action we’re tracking is good or bad for us and map th…

Yup I think it’s best to leave credits and debits behind. We can use more than 2 bits these days. I think a far more intuitive system is use negative numbers with a symmetrical acc…

I don’t think you need to think of income accounts as negative if the ledger you use enforces an updated accounting equation that also uses negative numbers, See https://news.ycomb…

Nope, in these examples the +Asset on the left means you received say cash. The right side shows various ways to balance that out based on the accounting equation I did an explanat…

We implemented negative numbers in our ledger API ( https://fragment.dev ) and don’t use credits and debits at all. A bunch of engineers who didn’t know double-entry found it a lot…

I think you’re missing the balancing that needs to happen that’s internal to each party’s books. That’s where an expense account would come in, using the accounting equation: ∆ Sta…

I think you’re right that currency is technically what I meant by money in that sentence. Like you said most people equate the two, which is why I prefer to use the word “value” fo…

While money can’t be created or destroyed (unless you run a central bank…), value can be. Ledgers always have a specific perspective, and that perspective can assign a different va…

I think the fundamental problem is the traditional accounting equation: Assets + Expenses = Liabilities + Equity + Income We try to group the accounts by left and right side and fi…

The reason isn’t to double the amount the work to catch errors. storing both sides genuinely stores extra metadata about the transaction that is not captured by only storing it onc…

Yup, this is the same way of thinking I described here: https://news.ycombinator.com/item?id=39994335 Instead of grouping together accounts into credit-normal and debit-normal, to …

Yeah, I think a more intuitive way is to replace credit and debit with State and Change as the pair of things in double-entry. It means that you don't have to swap meanings based o…

I don't work at Stripe, but I've talked to a few ledger nerds there. One thing I'd point out that makes Stripe's ledger different than most others you might have seen or encountere…