Double-Entry Accounting

BalanceSheet Pro follows standard double-entry bookkeeping principles.

Fundamental Equation

Assets = Liabilities + Equity

Every transaction must maintain this balance.

Journal Entry Rules

1. Debits must equal Credits — Enforced at database level
2. Every entry needs at least 2 lines — Minimum debit + credit
3. Each line is either debit OR credit — Never both
4. Entries must be posted to an open fiscal period

Account Types

Type	Normal Balance	Increases With	Examples
ASSET	DEBIT	Debit	Cash, AR, Inventory, PPE
LIABILITY	CREDIT	Credit	AP, Loans, Deferred Revenue
EQUITY	CREDIT	Credit	Common Stock, Retained Earnings
REVENUE	CREDIT	Credit	Sales, Service Revenue
EXPENSE	DEBIT	Debit	Salaries, Rent, COGS

Chart of Accounts Structure

1000-1999  ASSETS
  1000-1099  Cash & Cash Equivalents
  1100-1199  Accounts Receivable
  1200-1299  Inventory
  1500-1599  Property, Plant & Equipment

2000-2999  LIABILITIES
  2000-2099  Accounts Payable
  2200-2299  Long-term Debt

3000-3999  EQUITY
  3000-3099  Common Stock
  3200-3299  Retained Earnings

4000-4999  REVENUE
  4000-4099  Operating Revenue

5000-5999  COST OF GOODS SOLD
  5000-5099  Direct Materials

6000-6999  OPERATING EXPENSES
  6000-6099  Salaries & Wages
  6100-6199  Rent & Occupancy

7000-7999  OTHER INCOME & EXPENSES
  7000-7099  Interest Income
  7100-7199  Interest Expense

Multi-Currency

BalanceSheet Pro supports three amount layers per journal line:

Layer	Description	Example
Original	Transaction currency	IDR 15,000,000
Primary	Functional currency	USD 1,000
Secondary	Presentation currency	IDR 15,000,000

Monetary vs Non-Monetary

• Monetary: Cash, AR, AP — revalued at period end
• Non-Monetary: PPE, Inventory — use historical rate

Cost Centers

Cost centers apply to P&L accounts only:

6100 Marketing Expense | Cost Center: 1001 Sales | Debit: 1,000
1100 Bank              | Cost Center: 0000 N/A   | Credit: 1,000

Use 0000 for balance sheet accounts.