NIOS Senior Secondary Accountancy

Chapter 38: Database Management System (DBMS)

Module 7: Computerized Accounting
Module 7: Application of Computers in Financial Accounting

Lesson 38: Database Management System (DBMS)

Master computerized relational databases using MS Access. Learn database design stages, account classification & codification, tables, queries, forms, reports, primary keys, and transaction voucher structures for accounting applications.

1

DBMS Definition & The 3 Database Design Stages

Core Concept

What is a Database & DBMS?

A Database is an organized collection of interrelated data stored digitally for generating reliable, decision-worthy information. A Database Management System (DBMS) eliminates paper-based limitations such as data redundancy, inconsistency, duplicity, isolation, and security vulnerabilities.

Data Architecture

Why DBMS Over Flat Spreadsheets?

While spreadsheets struggle with large-scale data integrity, DBMS uses relational tables linked by Primary and Foreign Keys to enforce normalization, multi-user concurrency, and secure back-end data processing.

The 3 Sequential Stages of Database Design

1
Requirements Analysis

Evaluates the informational needs ("Reality") of the organization: storage volume, update frequency, user types, hardware, and front-end integration.

2
Conceptual Design (ER Diagram)

Develops an Entity-Relationship (ER) diagram containing real-world entities, their descriptive attributes, and relationships binding them together.

3
Logical Design

Transforms ER models into relational data tables (e.g., Accounts, AccountType, Vouchers, Employees, Support tables).

2

Account Categorization & Hierarchical Codification

Account Groups

5 Core Accounting Categories

  • 5 : Capital (e.g., Sanjana's Capital, Naveen's Capital)
  • 4 : Liabilities (e.g., Jyoti Bros, Drawings)
  • 3 : Assets (e.g., Furniture, Cash, Bank, Debtors)
  • 2 : Revenue (e.g., Sales)
  • 1 : Expenditure (e.g., Purchases, Carriage, Rent, Wages)
4-Digit Codification

Sample Unique Electronics Codes

5001 : Sanjana's Capital Account (Group 5)
4301 : Jyoti Bros. - Creditor (Group 4)
3215 : Cash Account (Group 3)
3216 : Bank Account (Group 3)
2001 : Sales Account (Group 2)
1201 : Purchases Account (Group 1)
1219 : Salaries Expense (Group 1)
3

Microsoft Access Objects, Data Types & Field Properties

Tables

Store raw data structured in rows (records) and columns (fields/attributes).

Queries

SQL-compatible statements used to extract, filter, sort, and update data across tables.

Forms

User interfaces designed for convenient data entry, navigation, and front-end interaction.

Reports

Formatted printable output summaries (Columnar or Tabular formats) for decision makers.

MS Access Data Types & Field Properties Summary

Data Type Storage Capacity / Behavior Key Field Property
Text Max 255 characters (strings) Field Size: Controls max characters allowed.
Memo Accommodates 65,536 characters Used for lengthy comments or narrations.
Number / Currency Subjected to mathematical operations Decimal Places: Specifies currency precision.
Validation Rule Logical check (e.g. <= 10) Validation Text: Error message displayed if rule fails.
OLE Object Object Linking & Embedding Stores external images, photos, barcodes, or PDFs.
4

Relational Accounting Database Structure & UPDATE Queries

Key Architecture

Primary Key vs Foreign Key

A Primary Key (e.g. code in Accounts table, v_no in Vouchers table) uniquely identifies every record in a table. A Foreign Key (e.g. acc_type in Accounts table referencing cat_id in AccountType table) creates relational links between tables.

Automation

Automating Registers via UPDATE Queries

To maintain automated Purchase or Sales Registers, DBMS uses UPDATE Queries to recalculate outstanding balances dynamically:

Outstanding_Amt = [Supplier_Mst].[Tot_Pur_Amt] - [Supplier_Mst].[Tot_Amt_Paid]
Interactive DBMS Relational Diagrams & Query Engine

Relational Schema & Live Voucher Query Simulator

Explore the ER relational structure of Unique Electronics and test real-time accounting voucher posting into relational DBMS tables.

Diagram 1

Unique Electronics Relational Database Schema

Inter-table relationships created via Primary Keys (PK) and Foreign Keys (FK).

AccountType Table
🔑 cat_id (PK, Number)
• Category (Text)
Stores 5 core groups (1 to 5)
1 to Many
Accounts Table
🔑 code (PK, Text)
• acc_name (Text)
🔗 acc_type (FK, Number)
Chart of accounts (5001, 3215...)
1 to Many
Vouchers Table
🔑 v_no (PK, Text)
• v_date (Text)
🔗 dr_code (FK, Text)
🔗 cr_code (FK, Text)
• Amount (Number)
• Narration (Text)
Transaction entries
Interactive Simulator

Accounting Voucher Entry & SQL Query Engine

Select a transaction scenario to generate its backend DBMS row entry and simulate SQL query processing.

Database Voucher Row Metadata
Voucher No (v_no): A1
Debit Account Code (dr_code): 3215 (Cash)
Credit Account Code (cr_code): 5001 (Sanjana Capital)
Transaction Amount: ₹5,00,000
Narration: Sanjana commenced business with cash
Executed SQL Query Statement
INSERT INTO Vouchers (v_no, v_date, dr_code, cr_code, Amount, Narration) VALUES ('A1', '04/01', 3215, 5001, 500000, 'Sanjana commenced business with cash');
Affected Ledger Balances
Debit A/c Balance ₹5,00,000
Credit A/c Balance ₹5,00,000
High-Yield NIOS Board Exam Focus

5 Golden Rules for Database Management System

Memorize these 5 key database design rules, MS Access object properties, and key constraints for high marks in NIOS exams.

1

3 Sequential Database Design Stages

Design Methodology

Database creation follows 3 strict steps: (1) Requirements Analysis (evaluating business reality), (2) Conceptual Design (creating ER diagram of entities & attributes), and (3) Logical Design (building relational tables).

2

Primary Key vs Foreign Key Rule

Relational Integrity

A Primary Key uniquely identifies every record in a table without nulls. A Foreign Key in a secondary table points directly to a Primary Key in a master table to establish relationships.

3

4 Core MS Access Objects

MS Access Architecture

MS Access relies on 4 primary objects: Tables (store raw data), Queries (SQL retrieval & updates), Forms (user data entry UI), and Reports (formatted printable summaries). Default file extension is .accdb.

4

Text Data Type Limits & Validation Rules

Data Integrity

The Text data type has a maximum length of 255 characters, whereas Memo holds up to 65,536 characters. Use Validation Rules (e.g. <=10) and Validation Text to reject erroneous entries automatically.

5

5 Account Group Digit Rules & UPDATE Queries

Codification & Automation

Accounts are codified using 5 leading digits: 5 = Capital, 4 = Liabilities, 3 = Assets, 2 = Revenue, and 1 = Expenditure. Automated purchase/sales registers use UPDATE Queries to calculate outstanding amounts dynamically.

Self-Assessment Test

10 MCQ Practice Quiz

Test your knowledge of database design, MS Access objects, field properties, and codification schemes.

Your Score 0 / 10
Active Recall Flashcards

10 Interactive 3D Flashcards

Click or tap the card to flip between terms, definitions, and database properties.

Card 1 / 10
Database Term / Feature

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Click card to reveal definition & textbook property

Click to Flip
Definition / Technical Role

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Extracted strictly from NIOS Chapter 38