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‘If all you did was a single entry for the reduction in cash, you’d have no way to know it didn’t affect your financial position at all, and you wouldn’t have any record that I owed you the money. ‘With other types of transactions you may be making two entries that allow you to keep track of profit and loss at the same time you maintain your assets. The idea of the whole thing is that, in some way, the fact that assets equal liabilities plus owners’ equity allows you a complete picture of your profit and loss at the same time you know all your assets and what you owe.’ I guess he recognized the quizzical look on my face. ‘Do you know any algebra?’ he asked. ‘Yes. I remember some.’ ‘Do you remember that if you do the exact same thing to both sides of an equation, you don’t change its validity?’ ‘Example?’ ‘6 = 3y. If you divide each side of the equation by three you get six over three is two equals three over three, that’s one, times y. So the new equation is 2 = y. ‘You did the exact. Past the lane were a few morehouses a service road that ran round behind a tobacconist with a sub postoffice, a baker, an empty shop then the service road again and beyondthat a mini-market and a second pub with a large village green opposite.After the pub was a row of about twelve terraced two-story cottages andthe pavement ended to give way to soft verges and fifty yards further onwe came to a farmhouse. Paul stopped the car and reversed into thefarmyard and turned round and drove back to the pub and stopped. "Likeit?" Is this what you've brought us to see, a village green?" protestedBarbara."It is very pretty," I said. "Look at that lane on the other side of thegreen with all the maple trees their autumn colour is special. What's upthere, Paul?" You may not believe if but there's more than a hundred houses. The laneruns for about a mile and comes to a dead end like this."Barbara peered out, "Well it is nice, I'd like to live in a place likethis. As we're here, shall we go.
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