NCERT Class 11 Accountancy Computerised Accounting System

NCERT Class 11 Accountancy - Computerised Accounting System. Download NCERT Chapters and Books in pdf format. Easy to print and read. Copies of these textbooks may be downloaded and used as textbooks or for reference. Refer to other chapters and books at other links (NCERT now providing you soft copies of all textbooks of all subjects from class first to twelfth online). 

Computerised Accounting System

In chapter 12, you have learnt about the need for use of computers in accounting the nature anduse of accounting information system. In this chapter, we shall discuss the nature of computrised accounting system, its advantages, limitations and sourcing.

13.1 Concept of Computerised

Accounting System

A computerised accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements. Every accounting system, manual or computerised, has two aspects. First, ithas to work under a set of well-defined concepts called accounting principles. Another, that there is a user-defined framework for maintenance of records and generation of reports.

In a computerised accounting system, the framework of storage and processing of data is called operating environment that consists of hardware as well as software in which the accounting system, works. The type of the accounting system used determines the operating environment. Both hardware and software are interdependent. The type of software determines the structure of the hardware. Further, the selection of hardware is dependent upon various factors such as the number of users, level of secrecy and the nature of various activities of functional departments in an organisation.

Take the case of a club, for example, where the number of transactions and their variety is relatively small, a Personal Computer with standardised software may be sufficient. However, for a large business organisation with a number of geographically scattered factories and offices, more powerful computer systems supported by sophisticated networks are required to handle the voluminous data and the complex reporting requirements. In order to handle such requirements, multi-user operating systems such as UNIX, Linux, etc. are used.

Modern computerised accounting systems are based on the concept of  database. A database is implemented using a database management system,which is define by a set of computer programmes (or software) that manage and organise data effectively and provide access to the stored data by the application programmes. The accounting database is well-organised with active interface that uses accounting application programs and reporting system.

Every computerised accounting system has two basic requirements;

Accounting Framework : It consists a set of principles, coding and grouping structure of accounting.

Operating Procedure : It is a well-defined operating procedure blended suitably with the operating environment of the organisation.


The use of computers in any database oriented application has four basic requirements as mentioned below ; 

• Front-end Interface : It is an interactive link or a dialog between the user  and database-oriented software through which the user communicates tothe back-end database. For example, a transaction relating to purchase of goods may be dealt with the accounting system through a purchasevoucher, which appears on the computer’s monitor of data entry operator and when entered into the system is stored in the database. The same data may be queried through reporting system say purchase analysis software programme.

• Back-end Database : It is the data storage system that is hidden from the user and responds to the requirement of the user to the extent the user is authorised to access.

• Data Processing : It is a sequence of actions that are taken to transform the data into decision useful information. 

• Reporting System: It is an integrated set of objects that constitute the report. The computerised accounting is also one of the database-oriented applications wherein the transaction data is stored in well-organised database.The user operates on such database using the required and desired interface and also takes the desired reports by suitable transformations of stored data into information.

Summary with Reference to Learning Objectives

1 Computerised Accounting System : A computerised accounting system is an accounting information system that processes the financial transactions and events to produce reports as per user requirements. It is based on the concept of database and has two basic requirements:

(a) Accounting framework and

(b) Operating Procedure.

2 Advantages of Computerised Accounting System :

   • Speed

   • Accuracy

   • Reliability

   • Up-to-date

   • Scalability

   • Legibility

   • Efficiency

   • Quality Report

   • MIS Reports

   • Real time user interface

   • Storage and Retrieval

   • Motivation and Employees interest

   • Automated document production

3 Limitations of Computerised Accounting System :

   • Cost of training  

   • Staff Opposition

   • Disruption

   • System failure

   • Breaches of security

   • Ill-effects on health

   • Inability to check

 

4 Categories of Accounting Packages :

   • Ready-to-Use

   • Customised

   • Tailored


Questions for Practice


Short Answers

1. State the four basic requirements of a database applications.

2. Name the various categories of accounting package.

3. Give examples of two types of operating systems.

4. List the various advantages of computerised accounting systems.

5. Give two examples each of the organisations where ‘ready-to-use’, ‘customised’, and ‘tailored’ accounting packages respectively suitable to perform the accounting activity.

6. Distinguish between a ‘ready-to-use’ and ‘tailored’ accounting software.


Long Answers

1. Define a computerised accounting system. Distinguish between a manual and computerised accounting system.

2. Discuss the advantages of computerised accounting system over the manual accounting system.

3. Describe the various types of accounting software along with their advantages and limitations.

4. ‘Accounting software is an integral part of the computerised accounting system’

Explain. Briefly list the generic considerations before sourcing an accounting software.

 

Please refer to attached file for NCERT Class 11 Accountancy - Computerised Accounting System

Tags: 

 


Click to View or Download pdf file
Click for more Accountancy Study Material

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

Revised SOP preventive measures followed while conducting examinations

Revised SOP on preventive measures to be followed while conducting examinations to contain spread of COVID-19 issued by Ministry of Health & Family Welfare Examination centres are frequented by large number of students (as well as their parents) and staff till the...

TERI Green Olympiad 2020

Green Olympiad is a value driven project conducted by TERI (The Energy and Resources Institute) for school students annually since 1999. This Olympiad assesses the environment quotient of students and also enhances their understanding on issues related to sustainable...

Online Teacher Training Course on Competency based Education in DIKSHA

Competency is a set of skills, abilities, knowledge that helps an individual perform a given task in real life. Every learning should go into the imbibing of these skills to lead a productive and joyful life. The NATIONAL EDUCATION POLICY-2020 calls for shift towards...

Mathematical Literacy Free Practice Book for Students

With a larger goal to promote 21st century skills such as critical thinking and problem solving, the Central Board of Secondary Education has shared a Mathematical Literacy: Practice Book for Students. This Work Book is designed to allow learners of classes 7th to 10th...

Training of CBSE School Teachers on Olabs

Training of CBSE School Teachers on Olabs in collaboration with C-DAC Mumbai: OLabs is a platform jointly developed by the Ministry of Electronics and Telecommunications, Government of India, CDAC, and Amrita University to facilitate a virtual experience of CBSE...

NEP Transforming India Quiz

As a part of Shikshak Parv celebration, an online quiz competition on National Education Policy 2020 will be organized by the Ministry of Education, Govt. of India, from 5 th September to 25th September 2020 in order to create awareness about NEP among all stakeholders...

×
Studies Today