Structuring Database for Accounting

tables that are structured in a manner that ensures data consistency and integrity. In this chapter we shall discuss the basic concepts of database system of accounting. In order to understand the dynamics of database design, let us understand the data processing cycle in the context of accounting. Data processing involves the technique of collecting, sorting, relating, interpreting and computing data items in such a manner as to provide meaningful and useful information for decision- making.

The necessary steps involved in data processing cycle are data capturing, inputing, processing and generating information available to the user. Data processing cycle, when thought of in the context of accounting, requires a series of steps that have been described below briefly : (i) Source Documents : The first step is to capture accounting data from transaction(s) so as to prepare a document, called voucher (as already stated earlier), that expresses and documents an accounting transaction. The relevant accounting data is set out in the voucher, the sample of which is shown in figures . to .

. These documents are so designed as to permit the recording of accounting data in a systematic manner.