Abstract: Data processing for an improved bookkeeping and accounting system supervises, implements and coordinates a collection of coded data, the number of which is fixed and does not exceed several dozens; which represent totals of accounts describing financial condition of a business; and which are distinguished by the feature that the total of all asset accounts are equal to the total of all equity accounts. Attributes of checks and invoices reflecting new business transactions are entered into the system and each document affects the collection according to the change of financial condition in such a way that the asset-equity equation is always kept in balance. Statement of financial condition and income statement are formed based on the last updated collection of coded data and on a comparison of the last and the reference collections. The attributes of documents of business transaction after having been processed are arranged to form a database for a subsequent updating of accounting journals.