organisation operates within an environment. While operating, the

organisation operates within an environment. While operating, the organisation interacts , influences and gets influenced by the environment. An organisation may be viewed as a system consisting of several components called its sub-systems. Each of these sub-systems follows certain procedures and continuously interacts with each other and their external environment to accomplish the goals of organisation.

During the course of their interaction, events take place, which take the shape of data items. These sub-systems communicate continuously with AIS to provide data and seek information. A part of AIS is Financial Accounting System, which is designed for processing accounting transactions. For example,a firm uses a voucher to document an accounting transaction.

The contents of voucher consist of accounting data, which need be stored in an organised manner. Fig. . : Diagrammatic presentation of an entity type accounts with code as key attribute Fig.

. : Diagrammatic presentation of an entity type accounts with code as key attribute This continuous interaction results in real world transactions. These transactions are analysed with a view to identify the components called data items. A data item is the smallest named unit of data in an information system.