Explorations on a theme: "What is a transaction? "
3. Banking
(Hint: click the other triangles to
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All sales in America go thru two banks, either individually or aggregated into bank deposits.
Your bank maintains a mirror image of all of your purchases and sales (with partial detail)
Your customer's or supplier's bank maintains another mirror image of HIS purchases and sales.
The accounting records maintained by banks and their accountholders are mirror images of the same transaction:
From your viewpoint, your bank account is like an account receivable from the bank.
To the bank, your deposits are like Accounts payable.
The maintenance of accounting records for the same transaction within Banks' books and Accountholders' books, are a duplication of work.