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Integrated Accounting System

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Term Paper of DBMS on Integrated Accounting System

Relational Model table

Integrated Accounting System: - Integrated accounting system is application software or a system of accounting where the cost and financial accounts are kept in the same set of books. It avoids the need for separate set of books for financial and costing purposes. Able to provides or meets the information requirement for costing plus financial accounts.

Need of integrated accounting system: - Before integrated accounting system was made; non-integrated accounting systems or also known as interlocking systems were used. Then why the need of integrated accounting system arrived? First of all an interlocking system is defined as when a business keeps its cost accounts separate from the financial accounts such system is called interlocking accounts

Now in interlocking or non-integrated systems as there were to maintain two different financial books so it created a lot of confusion which also lead to error in records.

Advantages: -

Basically, in an integrated accounting system, the financial and cost transactions are recorded in an integrated ledger which is self balancing. The advantages are as follows:

1. It saves the clerical work because only one set of account is needed to keep the records.

2. No need to reconcile financial and cost profits;

3. No confusion arises from different stock valuations, method of depreciation and profits

4. It lessens the probability of error because recording takes place in one set of accounts and

Information produced on an integrated system is quicker, thus helping management in decision making.

Requirement of an Integrated Accounting System: -

ü Top management needs to decide the extend of integration of the two set of books to integrate until the stage of primary cost or factory cost or full integration

ü A suitable coding system must be developed to serve the purposes of both financial and cost accounting

ü An agreed routine, with regard to the treatment of provision for accruals, prepaid expenses, other adjustments necessary for the preparation of interim accounts

ü Proper coordination should exist between the staff responsible for the financial and cost aspect of the accounts

Modules of an Integrated Accounting System: -

Accounts Payable

* Interactive input vendor invoices

* Credit and debit memos

* Check reconciliation

Accounts Receivable

* Open item or balance forward

* Cash receipts register

* Statements

Suppliers

* Supplier of product

E-R diagram: -

Below E-R diagram is the basic structure which is including the core modules. Further the core modules have a lot of processes which are to be completed. In an E-R diagram there is relation between entities. An entity is denoted by a rectangle. Relationship is denoted by a diamond. Property of an entity is called its attributes and these are denoted by an ellipse.

Entities: - 1. Suppliers

2. Debtors

Attributes: -

1. Vendor Invoices

2. Credit & debit memos

3. Statement

4. Cash receipts

Relations: -

1. Amounts Payable

2. Amounts Receivable

Tabular form showing integrated accounting system: -

Department

Amount receivable (in rs.)

Amount payable (in rs.)

Vendor_name

Vendor_city

Accounts

15000

Singla industries

Ludhiana

Marketing

5000

2500

Big chill ad agency

Delhi

Production

2548

Metal industries

Delhi

Computer

25000

Info solutions

Gurgaon

Marketing

1256

Shams

Delhi

Production

14780

Goel cables wires

Hoshiarpur

Relational Model table:-

The Relational Model uses the concept of a relation using a table rather than a graph or shapes. The information is put into a grid like structure that consists of columns running up and down and rows that run from left to right, this is where information can be categorized and sorted.

The main significance of the relational model is the absolute separation of the logical view and the physical view of the data. The physical view in relational model is implementation dependent and cannot be further defined.

v The different relational tables for integrated accounting system are:-

Table for Sales: -

SNO

ITEM_CODE

QUANTITY

PRICE

1

3310

1

5000

2

3311

1

15000

3

3312

1

25000

4

3313

1

3000

5

3314

1

1200

Above is the -1 which is describing that the values are being are inserted in the table named “Sales”. The query used for this is called insert query. The syntax for insert is: -

Insert into <table name> values (<variable name> <data type> <size>,<variable name> <data type> <size>);

Above is the -2 which is describing the table which we created named “Sales” is being viewed using the select statement. The function of the select statement is to select the desired row of table. The operator ‘*' implies that all the rows are being fetched. The syntax for select statement is as follows: -

Select <column name1>, <column name2> from <table name>;

Table for Purchase: -

S_no

Pro_name

Quantity

Price

1

Antenna

50

200

2

Nokia 3210

3

6000

3

Nokia n95

5

75000

4

Handphone cover

400

20000

5

Nokia n72

5

4000

Above is showing the use of describe statement. Describe statement is used to see the logical structure of the table. It doesn't show the values rather it shows the structure. Now in above the table “Purchase: is being described.

The syntax for describe is: -

DESC <Table Name>;

Table for Suppliers: -

SUPP_CODE

NAME

AMOUNT

400-L

EVERLAST LTD.

20000

400-E

ERRICSON SUPPLIERS

50000

400-G

NOKIA HANDPHONES

75000

400-M

LION PHONE ACCESSORIES

25000

400-N

MAXIS COMMUNICATION

12000

Table for Debtors: -

Code

Debt_name

Location

Debt_amount

300-A02

ABP ENTERPRISE

DELHI

13520

300-A03

KITTEN SECURITIES

DELHI

13520

300-A04

ORIGINAL TRADING

DELHI

13520

300-A05

SUPER TRADING

DELHI

13520

300-A06

THE MALL HANDPHONE

DELHI

13520

On applying update statement to location of table: -

Code

Debt_name

Location

Debt_amount

300-A02

ABP ENTERPRISE

DELHI

13520

300-A03

KITTEN SECURITIES

NOIDA

13520

300-A04

ORIGINAL TRADING

AMRITSAR

13520

300-A05

SUPER TRADING

HOSHIARPUR

13520

300-A06

THE MALL HANDPHONE

CHANDIGARH

13520

Above is describing the example of using update statement. Update statement is being used in the table debtors. In above the various locations are being modified in the table. Update statement is used to modify the values of the table if by chance some person has entered a wrong value he/she can update the value by using this statement.

The syntax for update statement is: -

Update <table name> set <column name>=”value” where <condition>;

On applying update statement to location of table: -

Code

Debt_name

Location

Debt_amount

300-A02

ABP ENTERPRISE

DELHI

13520

300-A03

KITTEN SECURITIES

NOIDA

35140

300-A04

ORIGINAL TRADING

AMRITSAR

18479

300-A05

SUPER TRADING

HOSHIARPUR

35890

300-A06

THE MALL HANDPHONE

CHANDIGARH

13520

Now except using the basic commands like create, insert, and update we can also use various functions in SQL also for example: -

1. Sum

2. Average

3. Minimum

4. Maximum

Now above is describing the use of Sum () function. On applying the sum function the output will be sum of the numeric values of that column.

In above it is shown that we need not select all the rows of the table. We can also select the desired row and column of the table. The syntax for using above query is: -

Select <column name1>,<column name2> from <table name> where <condition>;

Above is describing the use of Avg or Average () function. On applying the sum function the output will be sum of the numeric values of that column.

Syntax for using average is: -

Select AVG (<column name>) from <table name>;

Bibliography: -

1. http://www.ccs4vms.com

2. http://www.dbti.com

3. http://www.conceptdraw.com

4. http://www.smartdraw.com

5. Fundamentals of database system by Elmasri Navathe

6. Database System Concepts by Henry F. Korth and Abraham silberchatz


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