Accounting For Developers, Part I
I have 2 main issues with understanding double entry accounting, that i haven&#x27;t really been able to grasp properly:<p>1 - How do i use it to keep track of multiple &quot;currencies&quot;? It&#x27;s simple enough to remove 1$ from the cash account into the inventory account, but that 1$ i now have in the inventory isn&#x27;t actually cash... How can i use this to keep track of the number of widgets i actually have in storage? Rather than the cost it took me to get them there.<p>2 - How do i account for profits? Back to the example, i move the 1$ from my cash onto the inventory. Great now i have 1$ in inventory. I sell half my inventory for 2$. How exactly do i account for this? I still have presumably 0.5$ in inventory, and now i got 2$ in cash, but where did that come from and go?<p>Presumably i&#x27;d take 2$ from the inventory and put it in a client account, but does that mean i now have negative 1$ inventory? Sure the client account would also have another transaction putting the 2$ into my cash account. And wouldn&#x27;t this make one transaction into actually 2 transactions? One from inventory to client, and one from client to cash?<p>If you can help me grasp this i would really appreciate it!