Accounting Information System

Term 2 - SY 2020-2021

Exercise: REA Model; Relationship Among Resources and Agents

Asset acquistion begins when the department manager recognizes the need to obtain or replace an exisiting fixed
asset. The manager prepares two copies of a purchase requistion; one is filed in the department and is sent to the
purchasing department. The purchasing department uses the purchase requisition to prepare three copies of
purchase order. One copy of the purchase order is sent to the supplier, another copy is sent to the AP departmeny,
and the third copy is filed in the purchasing department.

The receiving department receives the assets and packing slip from the vendor and prepared a receiving report. Once
copy of the receiving report is sent to AP, one is sent to the department manager, and one is sent to the inventory
department clerk and used to update the inventory records.

The AP clerk receives the invoice, which she compares to the purchase order and receiving report. The AP clerk
inputs the information into the computer terminal, posts the liability, updates the purchases journal, and prints out
hard copies of a journal voucher and cash disbursement voucher.

The journal voucher is sent to the general ledger department, and the cash disbursements voucher and the supplier's
invoice are sent to the cash disbursements department. The purchase order and the receiving report are filed in AP.
The cash disbursements clerk prepares and posts a check to the check register using the information from the
supplier's invoice and the cash disbursements voucher, and prints a hard copy of the check, which is sent to the
vendor. The cash disbursements voucher is sent to the general ledger department.

Required:
1. From the above fixed asset acquisition process, design an REA model.
2. From the above transactions, identify the events and show the cardianilities of associations.