An algebraic model for the representation of accounting systems

The paper describes an algebraic structure which embodies the essential features of the double-entry accounting system. The structure has the benefits of providing reliable means to record the balances of the accounts of the system and to apply transactions to the accounts. It will detect transactions which are of an undesirable type or which lead to inadmissible balances, thus preserving the integrity of the system. The structure is also able to generate reports and includes procedures to verify whether an existing balance has been obtained by legitimate transactions. Finally, it provides methods for comparing accounting systems with one another and over time.