ABSTRACT
This research work focused on the development of a computerized balance sheet and profit/loss account, a case study of NTEPS supermarket Ikot Ekpene. Balance sheet is used to maintain the financial record of a company on a yearly basis. It provides valuable information about the net worth of the company. Profit and loss account is used to determine if profit is being made or not. Balance sheet and profit/loss computation requires human expertise, but an expert system software is developed to solve the problem. The software system developed enables the processing of balance sheet and profit/loss accounting information. The advantage of the system is that it saves time and eliminates error in computation. The software development methodology used is rapid application development (RAD). The programming language used is Visual BASIC 6.0 and the database used is Microsoft Access 2003. Use case model is also used to represent the partitions of the system.
TABLE OF CONTENTS
Cover Page
Title Page – – – – – – – – i
Certification – – – – – – – – – ii
Approval Page – – – – – – – – iii
Dedication – – – – – – – – iv
Acknowledgments – – – – – – – v-vi
Abstract – – – – – – – – vi
Table of Contents – – – – – – – – viii-x
List of Figures – – – – – – – – xi
List of Tables – – – – – – – – xii
CHAPTER ONE: INTRODUCTION
1.0 Introduction – – – – – – – 1
1.1 Background of the Study – – – – – 1-2
1.2 Statement of Problem – – – – – 2-3
1.3 Aim and Objectives of the Study – – – – 3
1.4 Scope of the Study – – – – – – – 3
1.5 Significance of the Study – – – – – – 4
1.6 Organization of the Research – – – – – 4
1.7 Definition of Terms – – – – – – 5
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction – – – – – – – – 6
2.1 Theoretical Background – – – – – – 6-8
2.2 Overview of Expert System – – – – – 9
2.3 Typical Tasks for Expert System – – – – 9
2.4 Characteristics of Expert Systems – – – – 10
2.5 The Architecture of Expert Systems – – – – 10-13
2.5.1 How to Prepare a Balance Sheet – – – 14
2.5.1.1 Assets – – – – – 14-15
2.5.1.2 Total Current Assets – – – 15-16
2.5.1.3 Liabilities – – – – – 16-17
2.5.1.4 Net Worth – – – – – 17-18
2.6 Calculating Profit and Loss – – – – – 18
CHAPTER THREE: SYSTEM ANALYSIS AND DESIGN
3.0 Introduction – – – – – – – – 19
3.1 Research Methodology – – – – – – 19
3.2 Analysis of the Existing System – – – – – 19-20
3.2.1 Problems of the Existing System – – – – 21
3.3 Analysis of the Proposed System – – – – 21
3.3.1 Advantages of the Proposed System – – – 21
3.4 System Design – – – – – – – 21
3.4.1 Input Layout – – – – – – 22-24
3.4.2 Output Layout – – – – – – 25
3.4.3 Algorithm – – – – – – – 26-27
3.4.4 Flowchart – – – – – – – 27-31
3.4.5 Database Design – – – – – – 32-34
3.4.6 System Architecture – – – – – 35
3.4.7 Use Case/Class Diagram – – – – 35-37
CHAPTER FOUR: SYSTEM IMPLEMENTATION AND DOCUMENTATION
4.0 Introduction – – – – – – – 38
4.1 System Design Diagram- – – – – – – 38
4.2 Analysis of Modules – – – – – 38-38
4.2 Choice of Programming Language – – – 39
4.4 Programming Environment – – – – – 39
4.4.1 Hardware Requirements – – – – – 39-40
4.4.2 Software Requirements – – – – – 40
4.5 System Implementation – – – – – – 40
4.6 Software Testing – – – – – – – 41
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction – – – – – – – – 42
5.1 Constraints of the Study – – – – – – 42
5.2 Summary – – – – – – 42
5.3 Conclusion – – – – – – 43
5.4 Recommendations – – – – – – 43
References – – – – – – 44-45
Appendix A – – – – – – 46-51
Appendix B – – – – – – 52-57
LIST OF FIGURES
Figure Page
Figure 2.1: Balance sheet computation form – – – – 8
Figure 2.2: Expert system architecture – – – – – 10
Figure 3.1: Balance sheet Processing Assets input layout – – 22
Figure 3.2: Balance sheet processing liabilities input layout – 23
Figure 3.3: Profit and Loss Account input layout – – – 24
Figure 3.4: Login flowchart – – – – – – 27
Figure 3.5: Main menu flowchart – – – – – 28
Figure 3.6: Balance sheet computation flowchart – – – 29
Figure 3.7: Profit/Loss Account flowchart – – – – 30
Figure 3.8: Database Records flowchart – – – – 31
Figure 3.9: System Architecture – – – – – 35
Figure 3.10: Use Case Diagram – – – – – – 36
Figure 3.11: Class Diagram – – – – – – 37
LIST OF TABLES
Table Page Number
Table 3.1: Balance Sheet Output Layout – – – 25
Table 3.2: Profit and Loss Account Record Output layout 25
Table 3.3: Database Design – – – – 32
CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter is focused on the introduction to expert system for computing balance sheet and profit/loss account. It presents the introduction, background of the study, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research and definition of terms.
1.1 Background of the Study
An expert system refers to a type of computer application program that makes decisions or solves problems in a particular field, such as finance or medicine, by using knowledge and analytical rules defined by experts in the field. Human experts solve problems by using a combination of factual knowledge and reasoning ability. In an expert system, these two essentials are contained in two separate but related components, a knowledge base and an inference engine. The knowledge base provides specific facts and rules about the subject, and the inference engine provides the reasoning ability that enables the expert system to form conclusions. Expert systems also provide additional tools in the form of user interfaces and explanation facilities. User interfaces, as with any application, enable people to form queries, provide information, and otherwise interact with the system. Explanation facilities, an intriguing part of expert systems, enable the systems to explain or justify their conclusions, and they also enable developers to check on the operation of the systems themselves. Expert systems originated in the 1960s; fields in which they are used include chemistry, geology, medicine, banking and investments, and insurance and accounts (Boulanger, 2018).
An expert system is typically applied to solve problems meant for human experts. There are numerous mathematical problems in the accounting field and expert systems are needed to aid in solving these problems. Preparing a balance sheet and profit/loss account manually, takes time and it is expedient that an automated system is developed to solve these mathematical problems.
A balance sheet provides a snapshot of a business’ health at a point in time. It is a summary of what the business owns (assets) and owes (liabilities). Balance sheets are usually prepared at the close of an accounting period such as month-end, quarter-end, or year-end. New business owners should not wait until the end of 12 months or the end of an operating cycle to complete a balance sheet. A profit and loss account can also be prepared yearly to determine if the organization is making profit or loss.Computerized accounting information system is defined as the application of the computer based software used to input, process, store, and output accounting information. This application is in support of the ever advancing technology that enables firms to use computer programs to perform tasks that were previously done manually. Developing an expert system for the computation of balance sheet and profit/loss account therefore involves the computerization of the manual system in order to facilitate decision making and easy retrieval of balance sheet and profit/loss account information (Brodt, 2008).
1.2 Statement of the Problem
The following problems necessitated the development of the study:
- Absence of an expert system at the case study to compute balance sheet and profit/loss account.
- High cost of employing and consulting an accountant to compute balance sheet and profit/loss account.
- It is time consuming to prepare balance sheet and profit/loss account manually.
- Errors are usually found in computation of balance sheet and profit/loss account manually.
- Manual record keeping of balance sheet/ and profit/loss account information is not efficient.
- Reports cannot be presented instantly in the manual system.