The REA

Method
MARY JOY DELA CRUZ ^ JANNELLE SALAC
 REA
is an accounting framework for modelling
an organization's critical resources, events,
and agents and the relationships between
them.

Proposed in 1982 by William E. McCarthy

as a generalized accounting model.
 The Basic REA Pattern

Resources Events Agents

 RESOURCES EVENTS
AGENTS

Economic resources Economic events Economic agents

Are the assets of the Are phenomena that Are individuals and
organization. affect changes in departments that
resources. participate in an
economic event.
 The basic REA pattern
Sales person
handles
goods outflow
sales

sell to

customer
duality

collect from

cash receipt
inflow
money Receives
cashier
Inventory

Customer (hungry)

with money

Employee
The employee sells the cupcakes to the customer
the cutomer pays the employee for the cupcakes
the customer deposits the money in the bank
CUPCAKES EMPLOYEE
(Inventoty) (Internal Agent)

CUSTOMER
(External Agent)
CUPCAKES SALE EMPLOYEE
(Inventoty) (Event) (Internal Agent)

CUSTOMER
(External Agent)
 EMPLOYEE
(Internal Agent)

CASH RECEIPT CUSTOMER

(Events) (External Agent)
 CASH CASH RECEIPT
(Resource) (Event)
Cupcakes sale employee
(Inventory) (event) (internal agent)

cash cash receipt customer

(resources) (event) (external agent)
Thank You!