Question No. 1 (25 marks)

TRENDY Company has a Vendor Payment system that performs vendor related payments. It involves Receiving and Recording of invoices, where all invoice/s information are stored and updated in Accounts Payable Ledger. Then the next step is Validating and approval of invoices, Preparation of Check payment, and Signing of the check, after the signing of the check the system will produce a cancelled invoice that will be inputted in Record Payment Process and stored in cancelled invoice file storage. During this stage the file for Payment Journal is also updated. From the Payment Journal the last step is to Post the payment in the Accounts Payable Ledger to produce an updated transaction.

Required:

1. Given the payroll processing of Trendy Company, could you design a context diagram for the company? (5 marks)

2. Based on your context diagram, expand it to Level 0 DFD to document the payroll processing system at TRENDY Company. (20 marks)