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diff --git a/doc/L3-Introduction.texi b/doc/L3-Introduction.texi deleted file mode 100644 index b393ce06..00000000 --- a/doc/L3-Introduction.texi +++ /dev/null @@ -1,162 +0,0 @@ -@c -*-texinfo-*- -@node Introduction to Ledger, Principles of Accounting, ,Top -@chapter Introduction to Ledger - -LEDGER is an accounting tool with the moxie to exist. It provides no -bells or whistles, and returns the user to the days before user -interfaces were even a twinkling in their father's CRT. - -What it does offer is a double-entry accounting journal with all the -flexibility and muscle of its modern day cousins, without any of the -fat. Think of it as the Bran Muffin of accounting tools. - -To use it, you need to start keeping a journal. This is the basis of -all accounting, and if you haven't started yet, now is the time to -learn. The little booklet that comes with your checkbook is a journal, -so we'll describe double-entry accounting in terms of that. - -A checkbook journal records debits (subtractions, or withdrawals) and -credits (additions, or deposits) with reference to a single account: -the checking account. Where the money comes from, and where it goes -to, are described in the payee field, where you write the person or -company's name. The ultimate aim of keeping a checkbook journal is to -know how much money is available to spend. That's really the aim of -all journals. - -What computers add is the ability to walk through these postings, -and tell you things about your spending habits; to let you devise -budgets and get control over your spending; to squirrel away money -into virtual savings account without having to physically move money -around; etc. As you keep your journal, you are recording information -about your life and habits, and sometimes that information can start -telling you things you aren't aware of. Such is the aim of all good -accounting tools. - -The next step up from a checkbook journal, is a journal that keeps track -of all your accounts, not just checking. In such a journal, you record -not only who gets paid---in the case of a debit---but where the money -came from. In a checkbook journal, its assumed that all the money -comes from your checking account. But in a general journal, you write -posting two-lines: the source account and target account. -@emph{There must always be a debit from at least one account for every -credit made to another account}. This is what is meant by -``double-entry'' accounting: the journal must always balance to zero, -with an equal number of debits and credits. - - -For example, let's say you have a checking account and a brokerage -account, and you can write checks from both of them. Rather than keep -two checkbooks, you decide to use one journal for both. In this general -journal you need to record a payment to Pacific Bell for your monthly -phone bill, and a transfer (via check) from your brokerage account to -your checking account. The Pacific Bell bill is $23.00, let's say, and -you want to pay it from your checking account. In the general journal -you need to say where the money came from, in addition to where it's -going to. These transactions might look like this: - -@smallexample -9/29 Pacific Bell $23.00 $23.00 - Checking $-23.00 0 -9/30 Checking $100.00 $100.00 - (123) Brokerage $-100.00 0 -@end smallexample - -The posting must balance to $0: $23 went to Pacific Bell, $23 came from -Checking. The next entry shows check number 123 written against your -brokerage account, transfering money to your checking account. There is -nothing left over to be accounted for, since the money has simply moved -from one account to another in both cases. This is the basis of -double-entry accounting: money never pops in or out of existence; it is -always a posting from one account to another. - -Keeping a general journal is the same as keeping two separate journals: -One for Pacific Bell and one for Checking. In that case, each time a -payment is written into one, you write a corresponding withdrawal into -the other. This makes it easier to write in a ``running balance'', -since you don't have to look back at the last time the account was -referenced---but it also means having a lot of journal books, if you -deal with multiple accounts. - -Here is a good place for an aside on the use of the word `account'. -Most private people consider an account to be something that holds money -at an institution for them. LEDGER uses a more general definition -of the word. An account is anywhere money can go. Other finance -programs use ``categories'', LEDGER uses accounts. So, for -example, if you buy some groceries at Trader Joe's then more groceries -at Whole Foods Markets you might assign the transactions like this -@smallexample -2011/03/15 Trader Joe's - Expenses:Groceries $100.00 - Assets:Checking -2011/03/15 Whole Food Market - Expenses:Groceries $75.00 - Assets:Checking -@end smallexample -In both cases the money goes to the ``Groceries'' account, even though -the payees were different. You can set up your accounts in any way you -choose. - -Enter the beauty of computerized accounting. The purpose of the -LEDGER program is to make general journal accounting simple, by keeping -track of the balances for you. Your only job is to enter the -postings. If a posting does not balance, LEDGER displays an -error and indicates the incorrect posting.@footnote{In some -special cases, it automatically balances this transaction for you.} - -In summary, there are two aspects of LEDGER use: updating the journal -data file, and using the LEDGER tool to view the summarized result of -your transactions. - -And just for the sake of example---as a starting point for those who -want to dive in head-first---here are the journal transactions from above, -formatted as the LEDGER program wishes to see them: - -@smallexample -2004/09/29 Pacific Bell - Expenses:Pacific Bell $23.00 - Assets:Checking -@end smallexample - -The account balances and registers in this file, if saved as -@file{ledger.dat}, could be reported using: - -@example -$ ledger -f ledger.dat balance -$ ledger -f ledger.dat register checking -$ ledger -f ledger.dat register bell -@end example - -An important difference between LEDGER and other finance packages is -that journal will never alter your input file. You can create and edit -that file in any way you prefer, but journal is only for analyzing the -data, not for altering it. - -@section More introduction - - -@section Building the program - -LEDGER is written in ANSI C++, and should compile on any platform. It -depends on the GNU multiprecision integer library (libgmp), and the -Perl regular expression library (libpcre). It was developed using GNU -make and gcc 3.3, on a PowerBook running OS/X. - -To build and install once you have these libraries on your system, -enter these commands: - -@example -./configure && make install -@end example - -@section Getting help - -If you need help on how to use LEDGER, or run into problems, you can -join the LEDGER mailing list at the following Web address: - -@example -http://groups.google.com/group/ledger-cli -@end example - -You can also find help at the @samp{#ledger} channel on the IRC server -@samp{irc.freenode.net}. - |