





                                 ACCOUNTING 101
                                  Version 2.01








         SHAREWARE CONCEPT .......................................  1
         REQUIREMENTS ............................................  2
         INSTALLING ON YOUR SYSTEM ...............................  2
         GETTING STARTED .........................................  5
         HELP FILES ..............................................  6
         BASIC RULES .............................................  6
         DATA FILES ..............................................  9
         TYPICAL ACCOUNTING CYCLE ................................  9
         DEPOSITS ................................................ 10
         JOURNAL ENTRIES ......................................... 13
         ACCOUNTS PAYABLE ........................................ 13
         SAVING AND RECALLING TRANSACTIONS ....................... 14
         PRINTING CHECKS ......................................... 15
         END OF MONTH ............................................ 15
         CLOSING ................................................. 16
         UTILITIES ............................................... 17
         AMENDING CHART OF ACCOUNTS .............................. 17
         INSPECTING THE TRANSACTION FILES ........................ 19
         OTHER UTILITY MENU ITEMS ................................ 19
         SOME QUESTIONS .......................................... 20
         LIMITS .................................................. 21
         LACK OF WARRANTY ........................................ 21






























                                 Accounting 101



                                 ACCOUNTING 101
                                  Version 2.01

         Accounting 101 is a simple easy-to-use double-entry
         accounting system suitable for individuals and small
         businesses. It does not contain a separate payroll module nor
         an accounts receivable module. If you need these features,
         then Accounting 101 is not for you.

         It is easy to set up and use the program since a sample
         balance sheet comes with the program. Just amend it to suit
         your individual situation and you are ready to go.

         It is beyond the scope of this document to explain accounting
         principles, but just remember that double entry accounting is
         nothing but a reflection of the basic equation that:

              ASSETS = LIABILITIES + EQUITY

         Anything that increases your assets increases your equity and
         vice versa. Anything that increases your liabilities
         decreases your equity.

         Assets are placed on the debit side of the ledger and
         liabilities and equity are placed on the credit side of the
         ledger, so credits equal debits. Now you are like the fellow
         who said, "Two weeks ago I couldn't spell expert and now I
         are one."

         Income and expense accounts are eventually reflected in your
         equity accounts but they are not posted directly to your Net
         Worth or Accumulated Earnings accounts until the end of your
         accounting year.

         When you deposit a check consisting of income two things
         happen.  Your bank account increases, so it is debited, and
         one of your income accounts increases,(which eventually
         increases equity) so it is credited.

         When you write a check for an expense item two things happen.
         Your bank account decreases, so it is credited, and one of
         you expense accounts (which eventually reduces equity)
         increases, so it is debited.

         SHAREWARE CONCEPT:

         This program is distributed under the Shareware concept.
         The program is copyrighted and may be copied and distributed
         only under certain conditions. It is not public domain
         property. Under the Shareware concept you are free to test
         the program as long as you wish without charge. You are
         trusted to pay the author if you decide to use the program.
         Remember that the program took many thousands of hours to
         write.


                                       1





                                 Accounting 101




         You are free to make and give copies to other parties under
         the following conditions:

              1. No more than a nominal charge is made for the copy.
              3. This documentation file must accompany the program
                 file.
              2. No alterations are made in the Accounting 101 program
                 file nor in the documentation file accompanying the
                 program.

         Help make the Shareware concept work. With your support we
         can all benefit. You get to test programs at little or no
         charge and are able to purchase the programs you select at
         bargain prices. The author gets a reasonable return for his
         work without the attendant costs of distribution.

         If you decide to use the program you should send your check
         to :

                                 Iddo L. Enochs
                               403 Cherokee Drive
                               Mc Comb, MS 39648

                      The price of this program is $25.00.

         I would appreciate any suggestions for making the program
         simpler and easier to use or for adding features that would
         prove useful. I will also try to answer any written questions
         from contributors.

         REQUIREMENTS:

         In order to run the program you will need an IBM PC, XT, AT
         or compatible computer with 512K of memory with either a
         monochrome or color monitor.

         INSTALLING ON YOUR SYSTEM:

         The following files should be on the Accounting 101 disk:


              101.EXE       This is the Accounting 101 program file.
              ACCTFILE.DAT  This is the accounts data sample file
                            suitable for personal use.
              ACCTFILE.BUS  This is an accounts data sample file
                            suitable for small business use.
                 {Rename this file to Acctfile.dat if you decide to
                  use it}
              INSTALL.EXE   This is a program which will install the
                            Accounting 101 program on your system.
              HELP1.FIL
              HELP2.FIL     {Help files}
              HELP3.FIL


                                       2





                                 Accounting 101



              HELP4.FIL
              HELP5.FIL
              README        This is the documentation file you are now
                            reading.


         You can have the installation done automatically by using the
         Install program file on the diskette. With the diskette in
         drive A just get into drive A and then type and enter
         "Install"(without the quote marks). After that just answer
         the queries and follow directions. Incidentally, if you get
         to a point in the installation procedure and wish to go no
         further, just press Control C or Control Break in order to
         abort the Install program. However, you are asked if you wish
         to proceed at several points in the procedure.

         The installation program checks to see if the Acct
         subdirectory already exists on your hard disk and, if so, it
         copies the 101.exe program and the Help files to the Acct
         sub-directory and quits. If the Acct sub-directory does not
         already exist it then creates the 101 sub-directory under the
         Acct sub-directory and copies the data files thereto.

         If you use the Installation program to install on your hard
         disk, you will be asked if you wish to make a second sub-
         directory named "Demo" for use with practice sessions. I
         would suggest doing so. The sample data files will also be
         copied to this sub-directory. After you become proficient
         with Accounting 101, you can delete the Demo sub-directory
         and its related files.

         If you wish to do your own installation and wish to install
         the program on your hard disk you should copy the 101.EXE
         program file and the Help files to the sub-directory of your
         choice and you should then make a sub-directory of this sub-
         directory with the name "101". I would suggest using the name
         "Acct" for the sub-directory in which the 101.EXE will
         reside.  Then copy the Acctfile.dat , the Depcode.data and
         the Vendcode.dat sample files to the sub-directory named
         "101" under the Acct subdirectory.  Your hard disk might look
         something like this:















                                       3





                                 Accounting 101



                            \(root dir)
                          Ŀ
                            files    
                          
                               
              Ŀ
                                                              
           \Acct            \Sub Dir 2                    \Sub Dir 3
         Ŀ     Ŀ                   Ŀ
          101.EXE         files                        files    
          Help1.fil                         
          Help2.fil 
          Help3.fil 
          Help4.fil 
          Help5.fil 
         
              
           \Acct\101
         Ŀ
         Acctfile.dat
         

         The Acctfile.dat file is a sample data file for personal use.
         The Acctfile.bus file is a sample data file for business use.

         You might also wish to make another sub-directory called
         "Demo" and copy the data files to it. You can then use this
         sub-directory for practice sessions and you can delete it and
         its files after you become proficient with Accounting 101.

         Incidentally, if you do not have the command "prompt $p$g" in
         your autoexec.bat file, I would suggest that you do so.  This
         command sets the DOS prompt so that it shows the current
         directory of the default drive plus the > character and I
         find this extremely useful in keeping track of where you are
         in your subdirectories. You may enter the command from the
         DOS prompt if you wish. I would suggest doing so now so that
         you can see where you are in your directory hierarchy at all
         times. See your Dos manual for details.

         To use on a floppy disk system you should copy the 101.EXE
         file to a floppy disk which has been formatted with the /s
         option (see you DOS manual) so that it will have the DOS
         system files installed on the disk. You should then copy the
         AcctFile.dat and the VendFile.dat files to a second formatted
         disk. There is no need to have the DOS system files on this
         second disk.

         The install program will also install the Accounting 101
         program on your floppy disk system. Just type and enter
         "Install" with the disk in drive A and then answer questions
         and follow directions. However, have two formatted floppies
         on hand before you start, one of which has the DOS system
         files on it.


                                       4





                                 Accounting 101




         GETTING STARTED:

         Remember that the Escape key will return you from most any
         part of the program.

         With a floppy disk system you should have the 101.EXE file on
         a disk in drive A and the data files on a disk in drive B.
         Now make drive A the current drive. Then type and enter "101
         b:". Be sure there is a space between the 101 and the b. The
         "b:" tells the program to look in drive b for the data files.
         Make an extra copy of your data files on another floppy disk
         and use this extra copy for practice sessions.

         With a hard disk system you simply make the sub-directory in
         which the 101.EXE program resides the current directory and
         then type and enter "101". If you have installed the extra
         sub-directory named Demo and you wish to run a practice
         session then type and enter "101 Demo".  This will tell the
         program to look to the Demo sub-directory for the data files.
         If your hard drive is drive C, for example, and the 101.EXE
         is in the Acct sub-directory, you type and enter the
         following :

              C:            {this will make drive C the current drive}
              cd\acct       {this will make the acct sub-directory
                            {the current directory }
              101           {this will run the 101.EXE program       }
              cd\           {this will return you to the root        }
                            {directory                               }

         If you wish to run a practice session, just type and enter
         "101 Demo" instead of "101".

         Incidentally, you can keep as many sets of books as you wish
         with this program.  With a floppy disk system you would just
         have a separate data disk for each set.  With a hard disk
         system just create as many subdirectories of the sub-
         directory in which the 101.EXE program resides as you wish
         and then copy the sample data files to each these
         subdirectories.  Then when you want to use a particular
         sub-directory just type and enter "101 ABC", as an example,
         if the sub-directory you wish to use is named "ABC". This
         tells the program to look to the sub-directory "ABC" for the
         data files.

         You will then be asked to select the month on which you are
         working. This will permit the program to select the proper
         deposit, journal and check data files all of which have an
         extension name indicating which month they cover. These
         extensions will be 'jan', 'feb', 'mar', etc.

         You will then be asked for the year on which you are working.
         This information is for the purpose of correctly identifying


                                       5





                                 Accounting 101



         the various reports which can be printed, and for selecting
         the proper cumulative transaction file.

         You will then be presented with a menu from which you may
         select the various parts of the program for execution. With
         this version of the program you may either use the arrow keys
         to move to your selection and then press the enter key, or
         you may enter the selection number itself. The title of the
         Menu will show you which sub-directory you are using for
         your data files. If you are in the 101 sub-directory, the
         Menu heading will show "101 Menu for Jan", for example.

         After you have set up your accounts I would suggest printing
         the Chart of Accounts so that you will have it for reference.

         Remember that to run the program using the data files in the
         101 sub-directory just type and enter "101" when in the Acct
         sub-directory.

         HELP FILES:

         Help is available from most parts of the program by merely
         pressing the F1 key. When the Help screen is active pressing
         the F1 key again will bring up the help index for that help
         file.

         BASIC RULES:

         The following are the rules for the operation of the program:


              1. There are five categories of accounts: Assets,
                 Liabilities, Equity, Income and Expenses. All Asset
                 accounts must start with the numeral 1. (1, 111,
                 103,1976, for example) All Liability accounts must
                 start with the numeral 2, all Equity with the numeral
                 3, all Income with the numeral 4 and all Expense with
                 the numeral 5. This rule must be followed in order
                 for the program to work properly !

              2. When the trial balance or the balance sheet statement
                 is printed out, all accounts which are normally debit
                 items, that is Assets and Expenses, will be shown in
                 the debit column. If one of the Asset or Expense
                 accounts happens to have a credit balance, it will be
                 shown as a minus figure in the debit column.
                 Conversely, all Liabilities, Income, and Equity
                 accounts, which are normally credit items, will be
                 shown in the credit column regardless of whether they
                 have credit or debit balances.

              3. When you select item 4 from the main menu, "Amend
                 Chart of Accounts", all Assets and Expenses will be
                 shown as positive amounts if they have debit balances


                                       6





                                 Accounting 101



                 and minus amounts if they have credit balances. On
                 the other hand, all Liabilities, Income and Equity
                 accounts, which are normally credit items, will be
                 shown as positive amounts if they have credit
                 balances and minus amounts if they have debit
                 balances. Just remember that all amounts are shown as
                 positive amounts if they have debit balances when
                 they are normally debit items and if they have credit
                 balances when they are normally credit items.

                 All of this may be a bit confusing at first, but this
                 arrangement will keep you from having to contend with
                 a large number of minus figures.

              4. Number the checking account on which you normally
                 draw checks number 111 and your equity account to
                 which you want your earnings accumulated number 33.
                 Number your savings or money market account 112. The
                 equity account would probably be named "Net Worth" if
                 the program is for your personal use or "Retained
                 Earnings" if the program is for business use. These
                 are the default values used by the program.  You can
                 use different numbers if you change the default
                 values by selecting "Change Defaults" from the
                 Utility Menu of the program.  However, it will
                 simplify things if you will follow this suggestion.

              5. Use the sample Acctfile.dat file which is supplied
                 and the details mentioned in paragraph 4 are
                 automatically taken care of.

              6. There are two types of accounts, the Summary account
                 and the Detail account. The Summary account
                 summarizes the amounts in the sub-accounts which
                 report to it. If an account is to be broken down into
                 more than one sub-account then it is should be made a
                 Summary account.  For example, if you have an account
                 named "Current Assets" which is a collection of all
                 of the current assets then the account is obviously a
                 Summary account. You may make as many sub-accounts of
                 the "Current Assets" account as you wish.  Of course
                 a summary account can have another summary account as
                 a sub-account in the level below it. See the example
                 in paragraph 9. Incidentally, the amounts in the
                 Summary accounts are updated each time there is
                 activity in the accounts. All of the amounts in the
                 detail accounts which report to a Summary account are
                 totalled and shown in the Summary account.

              7. You cannot post to a Summary account. You must post
                 to the Detail accounts which then report to a
                 Summary account in the level above.

              8. There are four levels of accounts from level 1 to


                                       7





                                 Accounting 101



                 level 4. A sub-account should be one level below the
                 level of the Summary account to which it reports. To
                 put it another way, a summary account must be one
                 level above the accounts which it summarizes.

              9. The following will give you an idea of the way in
                 which Summary and Detail accounts work:

                 Num Acct Name           Level   Type    Sum Acct
                 --- ------------------  -----   ------- --------
                 4   Income                1     Summary    0
                 41    Interest            2     Summary    4
                 411     Taxable Int.      3     Detail    41
                 412     Tax Free Int.     3     Detail    41
                 42    Miscellaneous       2     Detail     4

                 As you can see, the Income account is broken down
                 into two sub-accounts, the Interest account and the
                 Miscellaneous account. The Interest account is
                 further broken down into two sub-accounts. The "Sum
                 Acct" number shows which summary account that an
                 account reports to. As you can see, Account 41
                 summarizes accounts 411 and 412. If an account does
                 not report to an account in the level above it then
                 show a 0 as the General Account to which it reports.
                 See the Income account in the example above.

              10.Although you can use any numbering system you wish
                 consistent with the rules in paragraph one, I find it
                 easier to number sub-accounts with the same number as
                 the Summary account to which they report with a
                 numeral added on at the end. See the example in
                 paragraph 9 above. In this connection, you should
                 decide whether you will have 10 or move sub-accounts
                 at the time you start subdividing an account. If you
                 will have less than 10, you can start numbering the
                 sub-accounts by adding a 1 at the end of the number
                 of the Summary account number. As you can see in the
                 example above, the Interest sub-account is numbered
                 41 since there will be less than 10 sub-accounts of
                 the Income Summary account. Had there been more than
                 10 sub-accounts, the Interest account could have been
                 numbered 401 instead of 41.

              11.When you "close" a month the monthly transaction
                 files are now saved with extensions of "01", "02",
                 "03", etc.  Also, a procedure has been added to the
                 Utility Menu so that you can reset the posted signs
                 in the transaction files if you wish to do so.

         The reason the monthly transaction files are now saved and
         the resetting of the posted sign procedure has been added is
         to give you as much flexibility with the program as possible.
         Assume that in June your cumulative transaction file gets


                                       8





                                 Accounting 101



         wiped out for some reason. If you have a copy of your January
         1 account file, you could go back and rename the monthly
         transaction files from "01", etc. to "jan", etc., reset the
         posted signs, post the various months, close the months, and
         thus reconstruct your cumulative transaction file.

         DATA FILES:

         The data files are all kept in a subdirectory under the Acct
         subdirectory, normally the 101 subdirectory. The Account data
         file is named Acctfile.dat. The transaction files will be
         named Check.jan, ChkItem.jan, DepItem.jan, and JrnItem.jan
         for January. The extentsions for the transaction files will
         be jan, feb, etc. before closing and 01, 02, etc. after
         closing. The cumulative transaction file will be named
         Tran91.dat for 1991. The code files will be named
         DepCode.dat, JrnCode.dat and VendCode.dat.

         TYPICAL ACCOUNTING CYCLE:

         The normal accounting cycle will consist of the following
         routine :

              1. Enter your transactions during the month in as many
                 sessions as you like. The transactions will be
                 recorded in data files with the extension "jan" for
                 January, "feb" for February, etc. The names of these
                 files will be changed when the particular month is
                 closed. When you select the month on which you are
                 working you tell the program to look for the data
                 files with the extension for that particular month.

              2. Print your checks when you wish to do so. The program
                 will not keep you from printing a particular check
                 more than once. That is your responsibility.

              3. After all transactions are entered for a month you
                 should print out the transaction journals.

              4. After all transactions have been entered, go to the
                 End of Month Menu and post your transactions. Posting
                 will enter the amount of your transactions in the
                 Current Month column of your various accounts. If you
                 have to go back and enter another transaction after
                 posting, then do so and post again. Posting twice
                 will not duplicate the posting of any transactions.
                 Transactions can be recalled amd amended before
                 posting but not afterwared.

              5. After posting you may print out the trial balance to
                 see that everything is in order. This step can be
                 skipped if desired. You may also print out the
                 Account Activity Report if you wish to see
                 transactions grouped by Account number.


                                       9





                                 Accounting 101




              6. If everything is in order you can then print the
                 Income Statement and the Balance Sheet for that
                 particular month.

              7. If everything is in order you should then close that
                 particular month. Closing a month will transfer all
                 amounts from the Current Month category to the
                 Previous Months category.

              8. It is a good idea to back up your data files on a
                 regular basis. At a minimum you should do so after
                 each month is closed. This is done from the END OF
                 MONTH menu.

              9. You are now free to begin entering and posting
                 transactions for the next month. Incidentally, you
                 can begin entering transactions for a following month
                 before closing a current month as long as the
                 transactions for the following month are not posted.

              10.After closing the month of December (if you are on a
                 calendar year) you should close the year. Closing the
                 year will transfer the net amount of all of your
                 income accounts less your expense accounts to your
                 Net Worth or Retained Earnings account. All of your
                 income and expense accounts will be set to zero so
                 that you are ready to start a new accounting year.
                 Also, the transaction files which were saved during
                 the year with extensions of ".01", ".02", etc., will
                 be deleted so that new files can be created during
                 the next accounting year. Since closing the year is
                 rather a drastic step, you are asked to confirm the
                 closing by typing in "yes" before the closing will be
                 effected.

         DEPOSITS:

         Using the Deposit portion of the program is extremely simple.
         You will be presented with a menu from which you can elect to
         record deposits, print the deposit journal, display the
         deposit journal on the screen, print out the deposit codes,
         delete deposit codes, or return to the main menu.  To get
         started with the Deposit procedure just select item one from
         the main menu.

         When you select the "Deposits" item, the default deposit
         number will be one if no other deposits have been recorded
         and the deposit number will be the number after the last
         deposit number if other deposits have been recorded.  If you
         select a transaction number which has been previously
         recorded, that transaction will be recalled.  If the
         transaction has not been posted, it can then be amended.
         However, if it has been posted, you cannot make any changes


                                       10





                                 Accounting 101



         in the transaction. Whether or not the transaction has been
         posted will be indicated on the lower left of the screen.

         As you begin a deposit transaction you are prompted for the
         Deposit Code. If you do not wish to use this feature just
         press the Enter key. Be sure to read the topic SAVING AND
         RECALLING TRANSACTIONS which will explain the use of Deposit
         codes.

         The program will automatically recall the current date
         from the computers memory and will enter this date. Of course
         if you wish to override this date, you are free to do so.
         Once you enter a date different from the current date, the
         new date becomes the default date.

         You may press the + key to increment the month, day or year
         or the - key to decrement the same.

         You will notice that account number 111 will automatically be
         entered on the first account number entry space on the form.
         As mentioned earlier, this is the default checking account
         number. This account number can be overridden if you so
         desire. However, be sure that the first debit or credit item
         is used to debit one of your bank accounts.  You will only be
         allowed to debit this first item since a deposit is always
         recorded as a debit to your bank account.  Once the account
         number has been entered, and only existing account numbers
         will be accepted, the account name will appear automatically.
         This will help you be certain that you have the correct
         account number. You can then enter a comment about that
         particular transaction.  You then enter the amount of the
         deposit. If you don't know the total amount of the deposit,
         you can press the enter key (0.00 is the default amount) for
         the time being. You can then begin itemizing your deposits.
         You may enter up to a total of thirteen debit or credit
         items.

         After the first debit or credit item (which must be debited),
         you are free to either debit or credit the other entries as
         you wish. If you wish to make a debit entry you just enter
         the amount when prompted. If you wish to make a credit entry,
         press the Enter key when prompted for a debit amount and the
         cursor will automatically position itself for a credit entry.

         Version 1.02 and later versions of the program have a feature
         which should prove to be very helpful. When you are prompted
         for an account number for a transaction, you may either enter
         the number itself or up to six of the first six letters of
         the account name. The program will determine whether the
         entry is a number or name and act accordingly. If you are
         making a deposit to account number 47, Salaries, you may
         either enter the number 47 or you may enter the name
         "salari". The name entry is not case sensitive so you may use
         either capital or lower case letters. You may use as few


                                       11





                                 Accounting 101



         letters in the name entry as are unique. In other words if
         you have an expense account named " Zen lessons" and that is
         the only account name which starts with the letter "Z", then
         you may enter the letter "Z" alone to recall that account.

         Version 1.03 and subsequent versions have another feature
         which will make the entry of the proper account number for
         each debit or credit item even easier than before.  If you
         enter an account number which is not valid you will be taken
         to a window with a list of the various account numbers from
         your account file.  The cursor will be positioned
         alphabetically at the number closest to the number which you
         entered. You are then free to move up or down the list to
         select the correct account number for your debit or credit
         item. Only detail account numbers will be shown since you can
         only debit or credit detail accounts. The account numbers are
         listed alphabetically since that is the way they are arranged
         in the sample account files which accompany this program.

         On the other hand, if you attempt to enter an account name
         instead of a number, and the entry is incorrect, a window
         will appear and the account names will be listed
         alphabetically so that you can move to your choice of
         accounts. When attempting to enter an account name in this
         manner you will need to be careful to select the proper
         account since all detail accounts will be listed and Income
         and Expense Accounts, for example, will not be separated. The
         selection of the proper account number for each debit or
         credit item, which is the most time consuming part of an
         accounting program, has been made as simple and direct as
         possible.

         This version of Accounting 101 has another feature which
         should prove to be useful when you are making deposits,
         making journal entries or writing checks. You may now go
         directly from any one of these procedures to the Amend
         Accounts part of the program. Let us say that you are making
         a deposit of a check from XYZ oil company and this will be a
         new source of income to you. You have neglected to create a
         new income account for XYZ oil company but you are now in the
         middle of making the deposit entry. You may now press the F8
         key which will take you directly to the Amend Accounts part
         of the program where you may create the new income account.
         You then return directly to the Deposit procedure where you
         allocate this income to the new income account you have just
         created.

         You then go through the same process on the next line and
         subsequent lines until you have completed your entry.

         The instructions at the bottom of the form are pretty well
         self explanatory. The shift and tab keys pressed at the
         same time will move the cursor to the prior entry position so
         that you can make corrections. F3 deletes a transaction. The


                                       12





                                 Accounting 101



         F4 key will save a transaction for later recall. The F5 key
         will bring up a list of your Deposit Codes.  If you have
         entered the amount of the deposit on line one of the debit
         and credit items, use of the F9 key will automatically enter
         a debit or credit at the current position so that the debit
         and credits balance.  On the other hand, if the amount on
         line one of the debit and credit items has been left at 0,
         then use of the F9 key will act as an adding machine and will
         total the amount of your deposit. F10 processes the
         transaction and prepares for the next transaction and the
         Escape key will process that transaction and return you to
         the Deposit menu.

         By selecting item 3 from the Deposits Menu you can display
         the deposits on the screen. The debit to your bank account
         will be highlighted for each transaction. You may use the
         Arrow and the Page Down and Page Up keys to move through your
         deposits.  You may press the F2 key to display the deposit
         totals to your checking and your savings accounts.

         JOURNAL ENTRIES:

         Using the Journal Entry part of the program is almost exactly
         like the Deposit entry part of the program. The only
         difference is that the Journal Entry part of the program does
         not default to your bank account number for the first debit
         or credit entry. Also, you may either debit or credit the
         first item in your journal entry. In version 1.03 and later
         versions you may save and recall Journal Entries. Be sure to
         read the topic SAVING AND RECALLING TRANSACTIONS.

         ACCOUNTS PAYABLE:

         The Accounts Payable part of the program is very similar to
         the Deposit Entry part of the program with a few special
         additional features.

         Versions prior to version 1.03 saved the Vendor Code
         information in a file named Vendfile.dat in the 101
         sub-directory. Version 1.03 saves the  Vendor Code
         information in a file named VendCode.dat. If you have been
         using previous versions and have saved several Vendor codes
         it will be necessary to save the transactions again.

         Be sure to read the topic SAVING AND RECALLING TRANSACTIONS.

         The other feature is the printing of checks. Since most of
         the information for the checks has to be entered anyway, it
         certainly saves time to print your checks with the program
         rather than to write them out manually and then enter the
         information. The printing of checks will be covered in a
         separate topic.

         If you have not already done so you should read the part of


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                                 Accounting 101



         this document on Deposits to find out about the new feature
         for entering account numbers. You may now either enter the
         account number itself or up to the first six letters of the
         account name in order to recall an account number.

         You should be certain that you enter the Account Number of
         one of your bank accounts in the space on the check which
         appears on your screen. When you enter the amount of the
         check you are writing, this amount will appear as a credit to
         your bank account on line one of the list of debits and
         credits at the bottom of the screen. You are then free to
         allocate the amount of the check as you see fit.  There are a
         total of seven lines allocated to making account entries for
         each check you write. You can use as few as two debits and
         credits and as many as seven.

         Selecting item 4 from the Accounts Payable Menu will display
         the Check Journal on the screen. The debits to your bank
         accounts will be high-lighted and the total of debits and
         credits will be shown at the bottom of the screen. If you
         press the F2 key when the Check Journal is displayed, the
         total of your deposits to your checking and your savings
         accounts will be displayed.

         SAVING AND RECALLING TRANSACTIONS:

         If the transaction you are entering recurs periodically, then
         you should save it for future recall. Doing so will save you
         a great deal of time. After you have entered the information
         for a deposit, a journal entry or a check, just press the F4
         key in order to save the transaction. You will be prompted
         for a Code name which will be used for recalling the
         transaction. Use some name which will remind you of the
         transaction; SALA for the deposit of your salary or MAST for
         the check you write to pay your Mastercard bill, for example.
         If the amount of the transaction will vary each month, then
         do not enter any amounts prior to saving the transaction. You
         can then use the Shift and Tab keys to back up and enter the
         amount of the transaction for the current month before
         recording the transaction. The use of codes is not case
         sensitive.

         The next month when you wish to enter a transaction which has
         been saved, just enter the code name when prompted.  If you
         cannot recall the code name, press the F5 key in order to
         bring up a window with a list of all codes.  If you enter an
         improper code name, you will be taken to the code window from
         where you may move around and select the code you wish.  The
         cursor will be positioned nearest alphabetically to the code
         name you entered.

         When in the code window you may delete any codes by pressing
         the F3 key. You will be asked to confirm the deletion.



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                                 Accounting 101



         If you wish to display the Code information for the Deposit
         procedure, for instance, prepare to make a deposit and then
         press the F5 key to call up the Code window. Then select the
         Code for which you wish to examine the information. The Code
         information will be recalled. If you wish to recall other
         code information, just continue to press the F5 key and call
         up the Code information until you are finished.  Then you can
         press the F3 key to delete the transaction information last
         recalled before pressing the Escape key to exit the
         procedure.

         PRINTING CHECKS:

         The check procedure is designed to print checks which are
         made for the DAC Easy Accounting program. They can be
         obtained from Deluxe Computer Forms & Supplies by ordering
         check form Number 091077. Their toll free number is 1-800-
         328-0304. Other check forms seem to work also.

         You may print checks at any time after the check information
         has been entered. The program will list all of the check
         numbers and will allow you to select the check numbers you
         wish to print.

         Align the top of the check with the top of the print head on
         your printer. You can print the first check only at first to
         be sure that the alignment is proper. If not, void the check
         and reprint it. Also, you can print the check information on
         a plain sheet of paper and check the alignment by holding the
         paper and a blank check up to the light at the same time to
         see that everything fits.

         Remember that you have the responsibility to see that checks
         are not printed twice or more.


         END OF MONTH:

         With this version of Accounting 101 all of the procedures you
         normally perform at the end of the month are grouped together
         in one menu. After entering all of your transactions for a
         month and printing out the journals, you should then go to
         the END OF MONTH menu, post the transactions, reconcile your
         bank account, print the Income Statement, print the Balance
         Sheet, and then close the month.  You may also print a Trial
         Blance, and an Account Activity Report and back up your data
         files if you wish.

         The first thing you should do from the END OF MONTH menu is
         to post your transactions. Until they are posted, the
         transactions are not reflected in your accounts. Posting will
         record the various transactions in the appropriate Current
         Month column accounts. This may seem to be an unnecessary
         step. However, it enables you to enter transactions for June,


                                       15





                                 Accounting 101



         for example, before you have closed the month of May. If you
         do not post the June transactions, they will not show up in
         your May statements. Transactions may be amended before
         posting but not afterward.

         If for some reason one or more of the account numbers in the
         transactions of one of your journals is incorrect, that
         journal will not be posted and you will be so advised. This
         is highly unlikely since each account number is checked for
         validity as you enter transactions. However, if you delete an
         account after entering transactions but before posting(a real
         no no) it is possible. If this does happen, print out the
         transaction journal, carefully examine the account numbers
         therin to find the incorrect number or numbers, correct the
         transactions and then re-post.

         After posting, I would suggest reconciling your bank account
         to be certain that you and the bank agree on your balance.
         Just mark the outstanding transactions to reconcile your book
         balance with the bank balance of your bank accounts.

         Next, you may wish to print out a Trial Balance but this is
         optional. You may also print out an Account Activity Report
         which contains the same information as printed out in the
         three Journals but the information is grouped by Account.
         This is also optional.

         Next you should print out your Income and Balance Sheet
         statements.

         Next, if everything is in order, you may Close the month in
         order to prepare for the following month.

         Be sure to establish a regular back-up pocedure of your data
         files. Mark the files you wish to back up with the plus key.
         As a minimum you should back up the Acctfile.dat, the
         transaction (Tran91.dat for example), and the current month
         data files(Check.05, Chkitem.05, Depitem.05, Jrnitem.05, for
         example). Also, you should back up the various code files
         when they are altered. You might wish to back up data files
         after all transactions are entered but have not been posted
         and then again after closing the month.

         CLOSING:

         If you inspect the accounts using item number 1 from the
         Utilities menu you will see that each account has a current
         month column and a previous months column. When you post the
         transactions for a particular month, those debit and credit
         amounts are transferred or "posted" to the appropriate
         current month accounts. Be sure that all monthly transactions
         are posted before closing a month.

         "Closing" a month will simply transfer the amounts in the


                                       16





                                 Accounting 101



         various current month accounts to the previous months
         accounts.

         When you close a month the transaction files are saved with
         extensions of 01, 02, 03, etc. At the end of the accounting
         year these files will be deleted unless you opt otherwise.

         "Closing" a year will accumulate the total of the income
         accounts, subtract the total of the expense accounts, and
         transfer the resulting net amount to equity Account number
         33, Net Worth or Retained Earnings.  After closing the year,
         previous months income and expense accounts will be set to
         zero.

         Be sure that you don't close a year before you have closed
         the final month in the year!

         UTILITIES:

              Under the Utilities item in the main menu you may :

              1. Amend the Chart of Accounts.

              2. Permit Changes in the amounts in the Chart of Accts.

              3. Change the Defaults.

              4. Print out the Chart of Accounts.

              5. Inspect the Transaction file.

              6. Change the Month on which you are working.

              7. Check the Income and Expense.

              8. Check Debits and Credits.

              9. Switch to Color.

              10.Switch to Monochrome.

              11.Reset the Posted Signs.

              13.Return to the main menu.

         AMENDING THE CHART OF ACCOUNTS:

         Select item number 1 from the Utility Menu to amend the chart
         of accounts. This is probably the first thing you will wish
         to do if you decide to use this program. It will be your most
         important and time consuming chore when setting up your
         accounting program.  However, it has to be done only once, so
         take a little time and thought so that you do it properly.
         Using the sample account data file supplied with the program


                                       17





                                 Accounting 101



         will save you a great amount of time and trouble.

         You will be warned when you begin the Amend the Chart of
         Accounts procedure not to make any inadvertant changes. It
         would be a good idea to print out the Chart of Accounts
         before amending so that you can have the printed list for
         reference.

         If you use the sample account data file with the program
         you can change the names of any accounts as you wish, delete
         accounts you do not need and add any accounts you would like
         to have. However, most of the work of setting up an account
         file will have been done. Remember to number your checking
         account on which you normally draw checks number 111 and your
         Net Worth or Accumulated Earnings account number 33. Also,
         number your savings or money market account, if you have one,
         112.

         Be sure you understand the basic rules listed above. Enter
         your accounts in the order you wish them to appear in the
         various statements.  Group all of the assets together, all of
         the liabilities together, etc. Most of the data files are
         sorted before they are stored but the account files are not.

         You will see a column titled "Sum Acct" as you use this part
         of the program. You should enter the Summary Account to which
         this account will report. If it does not report to a Summary
         Account, then you should enter a zero. Remember that the
         account to which an account reports must be a Summary Account
         and must be one level above. If this is not the case with the
         "Sum Acct" that you enter -- that is the summary account to
         which it reports -- then the program will not work properly.

         You normally are not allowed to enter amounts in the various
         accounts when using this part of the program. If you are
         entering starting balances in your accounts, for example, you
         should enter them by making journal entries since this will
         leave an audit trail which can be saved and checked at a
         later time. However, by selecting item number 3 from the
         Maintenance menu you will free yourself to make changes in
         the amounts when using this part of the program. You should
         do so with the greatest caution since there will be no record
         of these changes. This feature can be used when setting up
         your books for the first time so that you do not have to make
         so many journal entries. However, again, you will not have an
         audit trail for these entries. If you do use this procedure,
         be sure to check the total of debits and credits to see that
         they are in balance.

         The names of the accounts will be indented on the screen
         based upon the level of the account. Level 1 accounts will
         not be indented. Level 2 accounts will be indented 2 spaces,
         level 3 accounts 4 spaces and level 4 accounts 6 spaces. This
         arrangement will enable you to visualize the heirarchy of the


                                       18





                                 Accounting 101



         accounts.

         The instructions on the uses of various keys at the bottom of
         the screen should be pretty well self explanatory. The F3 key
         will delete the account at the cursor. You will be asked to
         confirm any deletions. The F4 key will insert an account at
         the cursor.  The F5 key will add an account at the end of the
         list of accounts.  If you use the F5 key to add an account
         you will be taken to the end of the account list so that you
         may see this addition. The Num Lock will automatically be set
         to the off position when you select this part of the program.
         If you wish to use the numerical pad to enter numbers, just
         toggle the Num Lock key.  Unless you are entering a lot of
         numbers, I would suggest that you leave the Num Lock off and
         use the numbers across the top of your keyboard for data
         entry so that you will not inadvertantly renumber an account.
         You can use the F1 and F2 keys to page through the accounts
         and the tab and shift tab keys to move up and down on the
         screen when the Num Lock is on.  When the Num Lock key is
         toggled off you can use the arrow keys and the Pg Up and Pg
         Dn keys to move around the list of accounts.

         In order to avail yourself of the feature which allows
         you to enter up to the first six letters of an account name
         when you are prompted for an account number, I would suggest
         that you be sure to make the first six letters of each
         account name unique. If you would like to have one account
         named "Current Assets" and another "Current Account", then
         you might change the former to "Curr. Assets" in order to
         make it unique.

         INSPECTING THE TRANSACTION FILES:

         Beginning with version 1.02 a transaction file is now
         maintained with all of the transactions for the entire year.
         When a month is closed all transactions for the month are
         written to a file. The transactions for the entire year for
         any particular account can be listed on either the screen or
         the printer for your inspection. This should come in handy at
         the end of the year when you may wish to have a breakdown of
         all transactions in various accounts for either tax purposes
         of just for your information. With version 2.01 you can enter
         either the name or the number of the account. If you happen
         to get the name or number wrong, you are taken to a window
         from which you may make the proper selection.

         OTHER UTILITY MENU ITEMS:

         The other Utility Menu items are fairly simple to use and
         don't require much explanation.

         You may change the default Checking Account number and the
         default Net Worth or Accrued Earnings account number.
         However, it would simplify things if you leave them as they


                                       19





                                 Accounting 101



         are in the sample Account files.

         The printer control code numbers are used when printing
         checks. The form length is set to 7 inches when printing
         checks and to 11 inches otherwise. If the control codes are
         different for your printer, you should enter the information
         and save it in a file. The default file is now kept in the
         sub-directory in which your 101 program resides.

         If for some reason you are unable to have the program set the
         form length properly when printing checks you can resort to
         manually setting the printer for 7 inch form length before
         running the program and printing checks.

         To check the total of debits and credits select item number 9
         from the Utilities menu. A list of all of the accounts will
         be shown on the screen as well as the total of debits and
         credits.

         You may print out a list of account numbers for handy
         reference.

         You may check the totals of income and expense and the net
         income at any time.

         SOME QUESTIONS:

              The following are questions that might come up as you
              use the program:

              1.  What happens if I have closed a month and I then
                  find that I have forgotten to enter a certain
                  transaction?
                  Answer: Reopen the month, enter the transaction,
                  post it and then re-close the month. Be sure to use
                  a different transaction number than were used in
                  prior entries.

              2.  I want to keep a separate set of books for the XYZ
                  company. How do I go about doing so?
                  Answer: If the 101.EXE file is in a sub-directory
                  named Acct, create a sub-directory under the Acct
                  sub-directory with the name "XYZ". Then copy the
                  sample data files to this sub-directory. When you
                  want to work on the XYZ accounting files just type
                  and enter "101 XYZ" when in the Acct sub-directory.

              3.  What happens if I delete a Summary account without
                  deleting the Detail accounts under it.
                  Answer: The program will not crash. However, the
                  Balance sheet and the Income statements may not
                  properly reflect the proper amounts.

              4.  Can I obtain the source code for the program?


                                       20





                                 Accounting 101



                  Answer: No, it is not available.

              5.  In what language is the program written?
                  Answer: Turbo Pascal (c) version 5.0.

         LIMITS:

         As already mentioned, this is a basic program and it
         necessarily has some limitations. The use of arrays for the
         operation of data restricts the size of the data files which
         can be used. This should not be a problem with the small
         accounting jobs used by the 101 program. Some of these limits
         are as follows:

              1. You can have no more than 150 accounts in the data
                 file.

              2. You can normally write no more than 100 checks with
                 up to 300 debit or credit items in one accounting
                 period. However, you can get around this limitation
                 by writing the limit of checks in one or more
                 sessions and by then printing your Check journal,
                 posting your checks and then closing the month. Then
                 you can reopen the month and write up to the limit of
                 the checks again. However, the monthly income
                 statements will not be correct.

              3. You can normally make no more than 300 deposit items.
                 Each debit or credit is considered a deposit item.

              4. You can normally make no more than 300 journal
                 entry items. Each debit or credit is considered a
                 journal item.

         LACK OF WARRANTY:

         I have used this program extensively for some time and it
         seems to work properly. However, before using this program
         you should understand that I cannot warrant or guarantee that
         it will work properly under all circumstances.  You should
         check to see that it performs as you want it to, but I will
         not be responsible for any mistakes in your accounting
         records caused by the program. If this is not agreeable, then
         don't use the program.  Thanks for helping to make the
         Shareware system work.

         Feel free to give copies of this program and documentation to
         your friends and associates as outlined above.








                                       21



