ITPEC FE Morning October 2018 Question 28

Topic: Databases

The data model in the diagram below is implemented with three (3) tables. Which of the following is an appropriate combination of A and B in table “Transfer” that contains the record that indicates “500 dollars sales to Company X are posted to the cash account on April 4, 2017”? Here, the data model is described in UML.

AccountAccountCodeAccountTitle2.. **TransferAmountDebitCreditAccountingTransactionTransactionNumberDateOfPostingDescriptionConstraint:The total “Debit” amount ofone (1) accountingtransaction must match thetotal “Credit” amount.

Account

AccountCodeAccountTitle
208Sales
510Cash
511Deposits
812Travel expenses

Transfer

AccountCodeDebit/CreditAmountTransactionNumber
AB5000122
208Credit5000122
510Credit5000124
812Debit5000124

AccountingTransaction

TransactionNumberDateOfPostingDescription
01222017-04-04Company X
01242017-04-04Company X
OptionAB

Explanation

A = 510, B = Debit — transaction 0122 already credits Sales, so its matching entry must debit Cash for the same 500 dollars.

The note on AccountingTransaction requires total debits to equal total credits within one transaction. Transaction 0122 has the row 208 (Sales), Credit, 500, and the missing row is its other half. Receiving 500 dollars in cash increases an asset, and assets increase on the debit side, so the row is 510 (Cash), Debit, 500. Transaction 0124 shows the reverse direction: paying travel expenses out of cash is recorded as Cash, Credit and Travel expenses, Debit.

Answer (d)

Why not others:

  • •(a) 208, Credit — two credits and no debit, breaking the debit = credit constraint, and Cash never appears
  • •(b) 208, Debit — debits and credits the same Sales account, which cancels out and never records the cash
  • •(c) 510, Credit — balances nothing (two credits) and would mean cash going out, as in transaction 0124

Key rule: Every accounting transaction balances debit against credit; asset increases are debits and revenue increases are credits.

Databases · AI-written, may contain errors

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