Structuring Database for Accounting

However, information may be viewed as data at one level. But when it is processed keeping in view the requirements of decision situation, it becomes information at another level. For example, accounting data at transaction level is processed to produce balances of each account. The balances are summarised to prepare the trial balance.

The amounts given in trial balance constitute data to produce profit and loss account and balance sheet. (e) Database management System (DBMS) is a collection of programs that enables users to create and maintain a database. Formally, it may be defined as a general-purpose software system that facilitates the processes of defining, constructing and manipulating (or processing) databases for various applications. General-purpose software is defined as a set of programs, which are designed and developed for a community of users and not for any particular application with respect to a particular user.

. An Illustration of Accounting Database Consider an example of ACCOUNTING database for maintaining data pertaining to accounting transactions, support documents, accounts and employees with which the students of accounting are familiar. Figure . shows below the