1.9 KiB
1.9 KiB
Glossary
For agents (and humans) new to accounting. The engine's naming follows these definitions exactly.
- Debit / Credit — The two sides of every journal line. Not "good" and "bad": debit = left, credit = right. What they do depends on the account type (see normal balance).
- Normal balance — The side that increases an account. Assets and expenses
are debit-normal (a debit increases them); liabilities, equity, and revenue
are credit-normal.
AccountType::normal_side(). - Chart of accounts — The registry of all accounts, organized by code
(e.g.
1000Cash,6000Rent Expense). Five types, no more. - Journal entry — A set of balanced lines with a date and description. The atomic unit: it posts whole or not at all.
- Ledger — The books: the chart plus the append-only log of posted
entries. (In this codebase
Ledgeris also the command surface.) - Posting — Validating a draft entry and appending it to the log. One-way.
- Trial balance — A listing of every account's debit or credit balance. Total debits must equal total credits; if they don't, the books are broken.
- Balance sheet — Assets = Liabilities + Equity, at a point in time.
- Profit & loss (income statement) — Revenue − Expenses = Net income, over a period.
- Reversing entry — An entry that exactly undoes a posted entry (same lines, sides flipped), linked to the original. The correction mechanism.
- Placeholder account — A header in the chart (e.g. "Current Assets") that organizes other accounts but takes no postings itself.
- Closing the books — Period-end ritual: move revenue/expense balances into retained earnings so the new period starts clean. (Future: R-FUTURE-2.)
- Current earnings — Net income to date on an unclosed book. We fold it into equity so the accounting equation holds before close.