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Functions of Database Management System


We are aware that accounting is based evidences and such evidences are documented with vouchers. All transactions are recorded in the books of account on the basis of evidences. Let us take a few transactions and discuss how vouchers are useful in accounting.

Exhibit 1.1: A Voucher for a transaction involving two accounts ie., a debit and a credit.

 

INAM BUSINESS SERVICES
Transaction Voucher

Voucher No. 01                           Date: October 10, 2007

Debit Account : 2200016 Bank Account (Current)

Credit Account : 1100001 Capital Account

Amount          : Rs. 1, 00,000

 

Narration        : Transferred amount from Savings Account to the firm's

Current Account with Axis Bank Ltd. Lajpat Nagar
Branch (A/c No. 126010100008816) by the Proprietor,
Vikas, to commence the business.

Approved by:                                                             Prepared by: Balan

 

The above transaction can be recorded through other types of transaction vouchers known as 'Credit Voucher' and 'Debit Voucher'. Credit Voucher can record more than one credit against one debit and Debit Voucher can record more than one debit against one credit. Let us review one sample voucher each of a credit voucher and a debit voucher.

Exhibit 1.2: A Voucher for more than one credit against one debit.
 
INAM BUSINESS SERVICES
Credit Voucher

Voucher No. 01                                                     Date: October 10, 2007

Debit Account : 2200016

Sl No Credit Account Name of Account Amount (Rs.) Narration
1 1100001 Capital Account 1,00,000 Capital for starting of Business
2 1100005 Loan Account 50,000 Loan Received
    Total Amount 1,50,000  

 

Approved by:                                                                Prepared by: Balan

 

Exhibit 1.3 A Voucher for more than one debit against one credit.

 

INAM BUSINESS SERVICES
Debit Voucher

Voucher No. 01                                           Date: October 10, 2007

Credit Account : 2200016Bank Account

Sl No Code Name of Account Amount (Rs.) Narration
1 3300001 Purchases Account 25,000 Purchases from M/s R.K. & Co.
2 2200015 Cash Account 10,000 Cash withdrawn for Office use
    Total Amount 35,000  

 

Approved by:                                                                                Prepared by: Balan

 

The accounting process, whether manual or computerized, involves identifying financial transactions and recording them in the books of accounts. It also involves storing and, thereafter, retrieving the transaction data when required. The retrieval of transaction data, under the manual process, is a bit difficult, as a number of data may have to be scrutinized before the sought data is retrieved. But, if a suitable mechanism to store the data is designed, data can be retrieved without much difficulty. The computerized accounting system can perform functions of identifying, storing and retrieving the data when required. This mechanism involves creating a database consisting of inter - related data tables that are structured to ensure data consistency and integrity.




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