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I learned double entry accounting. "Debits decrease and credits increase" is just one way to represent the numbers; I have also seen the other way around (where
by zzo38computer 6y ago
I learned double entry accounting. "Debits decrease and credits increase" is just one way to represent the numbers; I have also seen the other way around (where debits are positive). But more commonly, the presentation is such that debits increase the accounts on the left, and credits increase the accounts on the right. (Nevertheless, the explanation there does work.)
Some time ago (while I was bored in the accounting class), I invented "matrix accounting" (I was trying to invent something else, specifically, using complex numbers in accounting, which I concluded was impossible, but matrix math works). In this matrix accounting, "debits" and "credits" don't really exist and the presentations mentioned above are really just different eigenvectors. The accounting equation has this form:
<BAL|FSV> = 0
(Note that all of the components here are real, and not complex; also note that financial vector space is a kind of projective space.)
- 4silvertooth 6y agoCan you elaborate more on your invention, and how matrix maths work with that equation?
- zzo38computer 6y agoBAL stands for "balance", and FSV stands for "financial state vector". Let's say that you have a transaction T, where $500.00 is debited to one account and credited to another account; in mathematical notation, this can be written as: T = I + |A>$500 - |B>$500 or: T = I + |A>$500 + |B>$500 depending on what basis you are working with (since you can just define |B> to point in the opposite direction if you want a different basis vector). And then, you can have: <BAL|T|FSV> = 0 It is easy to see that this equation is valid.
- zjs 6y agoDo you have a more complete write up of matrix accounting anywhere?
- zzo38computer 6y agoUnfortunately, I don't have a complete write up on the computer. I could take the time to write it (since I know how it works, and could write about it), although I do not want to do right now (but maybe later).
- juped 6y agoCompare to https://arxiv.org/abs/1407.1898 https://arxiv.org/abs/1407.1898
- zzo38computer 6y agoI have not seen that; thank you for this information.