Back

Home

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.