Bonadio Electrical Supplies distributes electrical components to the construction industry. The company began as a local supplier 15 yrs ago and has grown rapidly to become a major competitor in the North central U.S. As the business grew and variety of components to be stocked expanded, Bonadio acquired a computer and implemented an inventory control system. Other applications such as accounts receivable, account payable, payroll, and sale analysis were gradually computerized as each function expanded. Because of its operational importance, the inventory system has been upgraded to an online system, while all the other applications are operating in batch mode. Over the years, the company has developed or acquired more than 100 application programs and maintains hundreds of files. Bonadio faces stiff competition from local suppliers throughout its marketing area. At a management meeting, the sales manager complained about the difficulty obtaining immediate, current information to respond to customer inquiries. Other managers states that they also had difficulty obtaining timely data from the system. As the result, the controller engaged a consulting firm to explore the situation. The consultant recommended installing a database management system (DBSM), and the company complied, employing Jack Gibbons as the database administrator.

At a recent management meeting, Gibbons presented an overview of the DBMS. Gibbons explained that the databases approach assumes an organizational, data oriented viewpoint as it recognizes that a centralized database represents a vital resource. Instead of being assigned to applications, information is more appropriately used and managed for the entire organization. The operating system physically moves data to and from disk storage, while the DBMS is the software program that controls the data definition library that specifies the data structures and characteristics. As the result. both the roles of the application programs and query software and the tasks of the application programers and users are simplified. Under the database approach, the data are available to all users within security guidelines.

a. Explain the basic difference between a file-oriented system and database management system.

b. Describe at least 3 advantages and at least 3 disadvantages of the database management system.

c. Describe the duties and responsibilities of Jack Gibbons, the database administrator. (CMA Adapted)

On 31 March 2018, the following balances were taken from the trial balance of Isaac Trading Limited:

Accounts receivable                         $400,000

Allowance for doubtful debts              $19,500

Net credit sales                              $5,200,000

Isaac Trading uses the allowance method for accounting for bad debts and identifies the amount on the basis of 5% of net credit sales.

The above accounts receivable includes $6,000 due from XYZ Ltd which was outstanding for more than 150 days. On 31 March 2018, Isaac Trading received notification that XYZ Ltd was insolvent and would be unable to pay their account.

On 31 May 2018, Isaac received notification from the liquidator and $3,200 in settlement of the XYZ’s previous outstanding debt.

Required:

1. Prepare the journal entry to write off the debt outstanding by XYZ Ltd on 31 March 2018.                      
2. Prepare the journal entry to adjust the balance for allowance for doubtful debts on the basis of 5% of net credit sales and determine the balance in the allowance for doubtful debts on 1 April 2018.                             
3. Prepare the journal entry to record the settlement received from XYZ Ltd’s liquidator.                            

The two new accounting interns were discussing the classification of receivables. One commented “Classification of receivables as current or non-current is not that important. The money is received eventually so what is the big deal?”. Discuss the importance of the appropriate classification of receivables and how it could impact on decision making.

The balance sheets for Choolwe & Co Ltd for the years ended 2017, 2018, and 2019 are as follows:
2017 2018 2019
Non Current assets K000 K000 K000
Plant and Equipment 13,200 16,110 16,410
Current assets
Inventory 2,190 2,280 2,490
Trade debtors 2,040 2,280 2,490
Short-term investments 4,200 1,800 1,290
Cash at bank and in hand 1,920 1,650 2,160
Creditors: amounts falling due within one year
Short-term loans (2,340) (2 ,580) (2,550)
Trade creditors (2,760) (2,610) (2,670)
Taxation (360) (420) (530)
Total current liabilities 5,460 5,610 5,750
Net current assets 4,890 2,220 2,620
Total assets less current liabilities 18,090 18,330 19,030
Other data
Income before tax 960 1,020 1,590
Tax on annual profit 360 420 530
Tax paid during the year 300 360 420
Annual depreciation 645 780 900
Dividends declared and paid 360 360 360
In 2017, equipment was sold at a loss of K210,000. New Equipment in 2017 cost K5,100 000 and in 2018 cost K1,200,000. Income transferred to other reserves in 2018 and 2019 amounted to K780 and K510 respectively.
REQUIRED:
Prepare a statement of cash flows for 2018 and 2019 in accordance with FSR 1 and how they would be presented under 1AS7.

Define database relationship and name its type?

What are some of the advantages of a relational database system?

What are some examples of Database Marketing & Discrimination？

Briefly describe the function of the DBMS in a database system.

What are the three types of database design situations?

Why are naming conventions important in designing a database?