Structuring database for Accounting class 11 Chapter 14

Structuring database for Accounting class 11 Accountancy Chapter 14

Structuring database for Accounting class 11Introduction

In the Accounting class for 11th grade, our database aims to streamline information for effective learning. We structure it to cover key aspects such as financial transactions, ledger entries, and key accounting principles. This database will serve as a centralized hub to access and manage relevant accounting data, ensuring students have organized and readily available resources for their studies

Structuring database for Accounting class 11Definition

Structuring a database for an Accounting class in the 11th grade involves designing a systematic organization of data to facilitate efficient storage, retrieval, and management of accounting-related information. This includes creating tables for financial transactions, ledgers, accounts, and relevant entities. The database is designed to support the learning objectives of the Accounting class, providing a structured framework for students to explore and understand various accounting principles and practices.

Structuring database for Accounting class 11 Important Notes
  1. Fields:
    • Define fields within each table to capture specific information. For example, the Transactions table may include fields like Date, Description, Debit, and Credit.
  2. Normalization:
    • Apply normalization techniques to eliminate redundancy and maintain data integrity. Ensure each piece of information is stored in only one place to avoid inconsistencies.
  3. Relationships:
    • Establish relationships between tables using primary and foreign keys. This helps maintain the integrity of the data and facilitates efficient retrieval.
  4. Chart of Accounts:
    • Implement a structured Chart of Accounts within the database to categorize various accounts, making it easier for students to understand the classification of financial transactions.
  5. Security:
    • Consider implementing user roles and access permissions to ensure that only authorized users can modify or access sensitive financial information.
  6. Queries:
    • Create queries that allow students to extract relevant information, analyze financial data, and generate reports. This enhances the practical application of accounting concepts.
  7. User-Friendly Interface:
    • Design a user-friendly interface for easy navigation. Integrate features that assist students in comprehending complex accounting concepts through visualizations and interactive tools.
  8. Backup and Recovery:
    • Establish a robust backup and recovery system to prevent data loss. Regularly backup the database to secure important accounting information.
Structuring database for Accounting class 11Question and Answer

Question:1 what do you understand by database? how does it different from DBMS?


A database is a structured collection of data that is organized and stored in a way that allows for efficient retrieval and management. It serves as a repository for information, enabling users to store, organize, and retrieve data as needed. Databases are designed to handle large volumes of data and provide a systematic approach to data storage and retrieval.

On the other hand, a Database Management System (DBMS) is software that facilitates the creation, maintenance, and manipulation of databases. DBMS acts as an interface between the database and the users or application programs. It provides mechanisms for defining, creating, and manipulating the database, as well as controlling access to the data stored in the database.

In summary:

  • atabase: The actual repository or collection of data, organized in a structured manner.
  • DBMS: The software that manages and controls access to the database. It includes tools for creating, modifying, and querying the database.

Question:2 what is meant type ? how it is different from entity set ? Illustrate by giving suitable examples from accounting reality.


Entity Set: An entity set is a collection of similar entities. An entity represents a real-world object or concept that has identifiable characteristics and can be distinguished from other objects. For example, in the context of accounting, you might have an entity set called “Customers,” where each entity represents an individual customer. Each customer entity would have attributes such as CustomerID, Name, Address, etc

Type: A type, on the other hand, refers to a collection of entities that share the same properties or attributes. It’s essentially a blueprint or template for creating entities. Going back to the accounting example, you might have a type called “Account” that represents the general structure and attributes

common to different types of accounts, such as Bank Account, Revenue Account, or Expense Account. The “Account” type would have attributes like AccountID, Type, Balance, etc.


  • Entity Sets:
    • Customers Entity Set:
      • Entities: Customer1, Customer2, Customer3, …
      • Attributes: CustomerID, Name, Address, Phone, …
    • Accounts Entity Set:
      • Entities: Account1, Account2, Account3, …
      • Attributes: AccountID, Type, Balance, …
  • Types:
    • Account Type:
      • Attributes: AccountID, Type, Balance, …
      • Subtypes: Bank Account, Revenue Account, Expense Account

Question:3 How are computers useful in processing the accounting data?


Data processing is a process of collecting, storing, summarising, analysing and interpreting the data and facts so as to represent reliable information for efficient and effective decision making. Data processing, in short, is a transformation of raw data into useful information. Computer system plays a very important role in processing the accounting data.

Data processing requires a mechanism to store data content in a manner that allows easy and convenient retrieval of data as and when required. This can be easily done with the help of computers by designing suitable database for accounting.

Moreover, computers also help in eliminating the duplication of data. Unlike the manual accounting system, computers are not subject to tiredness, boredom or fatigue, therefore; the reliability of data processed by computers is very high. Besides reliability, computers can process data at comparatively higher speed and with great degree of precision and accuracy. 

Question:4 What do you understand by multi-valued attribute? How is it different from complex and composite attribute? Illustrate by giving suitable example.


Attributes may be defined as characteristics that reflect the features of the entity. In case of a person these characteristics may be height, weight, name, date of birth, etc. and in case of accounts it may be code, type, name, etc. These attributes own a value which is stored in database as data.

Multi-valued attribute is an attribute that has multiple values. For example, flavour of ice-creams. It is a multi-valued attribute as the flavour of an ice-cream can be strawberry, vanilla, butter-scotch, etc. In other words, multi-valued attributes are the different characteristics of a same entity.

Composite attributes are the combination or aggregate of related attributes. These attributes can be further divided into small portions to represent the independent meaning of some basic attributes. For example, contact details which is generally divided into telephone numbers (with STD code), mobile number and e-mail Ids.

Question:5 what do you understand by accounting data? discuss the stages through which is it finally transformed for being presented as information in financial statements.


Accounting data refers to the facts and financial data contained in journals, ledgers financial statements and other books of accounts. that is accounting data pertains to the financial data recorded in the books of accounts.

The procedures through which the accounting data is transformed for being presented as information in financial statements is known as data processing data processing is a process of collecting, storing summarising analysing and interpreting the data and facts in such a manner so as to fetch reliable information for efficient and effective decision making.

The following are the various stages that are involved in transformation of data information so as to present in the financial statements.

  1. Collecting data from the source ducuments– First of all, data is collected from the source documents such as payment slips, receipt slips, etc. for preparing voucher. the preparation of voucher is the basis for recording the accounting data in a systematic and chronological (date-wise) manner.
  2. Input data-A suitable database is designed to enter the accounting data contained in the voucher. this is done with the help of pre-designed data entry form. this form is similar to the physical voucher form.
  3. Data storage-data storage is created for storing the input of data. it involves structing the database which is used for recording the accounting data. following is the format of bank data record.

4.manipulation of data -This stage involes transformation of the stored data to generate final reports.

5. Output of data-– It means representing reports such as journals, ledger, trial balance financial account, useful information the accounting users can obtain these reports just by accessing the transformed data. this stage basically implies generation of final reports in a pre-designed format.

Question:6 what is meant by entity type ? how it different from entity set? Illustrate by giving suitable example from accounting reality.


An Entity type means a common definition that is shared by a collection of entities in terms of their attributes is known as entity type. a separate name is given to each entity for their further identification. the entity type is described in the database through its various attributes.

The values of attributes of an entity belonging to particular entity type are known as entity Instance. On the other hand. an entity set is defined as a collection of all entity instance of a particular entity type. a set of attributes that is used to described an entity type is referred to as schema. the same set attributes is shared by the set of entities belonging to a particulars entity.

Type the entity set that consists of a collection of entities of a particulars entity type is referred as extenstion of the entity type.


350967 sunita and company 7, is an entity instance of an account whose

Code is 350967

Name is sunita and

Company Type is 7

In this example, entity refers to accounts on the other hand entity set is the collection of entity instance of the entity type account.

350967sunita and company 7
350823jayanti and company 7
360592sunil and bros. 7

Question:7 what do you understand by relationship type? how is different from relationship Instance and relationship set ?


The relationship between various entities that belong to different entity types in a specific. manner is known as a relationship type. a collection of various relationship that belongs to the same relationship type is called a relationship set. the result that is derived from the relationship type is known as instance and is shown in an entity set.

The relationship prepared between the two entity types. salary slips and employee. associates each salary slip with the employee who prepared it. similarly another example of relationship type of study IN associates one students entity and one class entity.

In this example. student and class are entities and the relationship between i.e STUDY Is the relationship set. In the following ER diagram. the relationship types are shown in a diamond shaped box. the participating entities are shown in the rectangular boxes, which are connected to the diamond shaped box through straight lines.

Structuring database for Accounting class 11

Read also

  1. Theory base of Accounting class 11
  2. 1 Recording of transactions-1 class 11
  3. Recording of Transaction-2 class 11

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