Question

Database systems may profoundly affect the fundamental nature of accounting. The basic rationale for the double-entry model is that the redundancy of recording the amount of a transaction twice provides a check on the accuracy of data processing. The double-entry accounting system may be unnecessary in database systems. Explain why this could be true and discuss any impact of database systems on accounting and the AIS.

Answer 1

S01! The basic rationale for the double entory model is that the redundancy of recording amount of a transa -ction twice Provides the accuracy of data processing The double entry system of accounting or it - means thout for every business transaction, amounts must be recooded in a minimum of two accounts. It could be true as the amounts related to the transaction are entered into a database Systems correctly, as it is stored only once and not twice. Double entry system also requires that fox all transactions, the amounts entered debits must be ecual to the amounts entered as credits - Data Processing is sufficiently accurate to make unnecessary the elaborate system of checks and double checks an that characterises the double eat accounting model. of there are advantages Even though double entry book keeping in database systems it is unnecessary as the data base system processing Suffice these advantages.

Double entoy book Keeping:- In accounting is a system 6 book Keeping so named because every entry to an account requires a corresponding and opposite entry to a ditberent account the double entoy has the u bas two equ ou and corresp -onding sides known as debit and credit. database systems an accountina Impact the and the AIS are automation and streamline re -Pooting. Strong internal controls are implemented in the system so that accounting scandals won't take Pace.