Accounting Database - storing a transaction

Question

You make a gaming website where the user can buy gaming credits and the funds are deposited/credited into the user\'s virtual account to play some game etc...etc..

Answer 1

In terms of the data (which is what you're asking), no. You should store it as a signed value. Double-entry bookkeeping is not something the mob does so it can hide the real profits from the IRS :-)

It means transaction have to be balanced (value is never created or destroyed, just transformed). And it'll be a lot easier to balance transactions (and the books) if you just store them in one column with a sign.

In terms of visual presentation, some accountant may like them in separate columns but the vast majority will generate reports with the "negatives" simply indicated differently (such as surrounding them with parentheses).

It may well be that (like many other accounting things), the dual columns are carried forward from many moons ago. It would be easier to add up two columns then subtract the negative total from the positive total to get the current position (as opposed to adding and subtracting in a intermixed fashion). But that's supposition on my part.

See also here.