NCERT Book Class 12 Accountancy Computerised Accounting System Overview

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Class 12 Accountancy Computerised Accounting System Chapter 01 Overview Of Computerised Accounting System: NCERT Study Material

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In modern business accounting transactions are processed through computers. Usage of computers and Information Technology (IT) enables a business to quickly, accurately and timely access the information that helps in decision-making. This sharpens the competitive edge and enhances profitability. The computer systems (Figure 1.1)
works with the data which is processed by the hardware commanded by the user through software. The Computerised Accounting System (CAS) has the following components:
Procedure : A logical sequence of actions to perform a task.
Data : The raw fact (as input) for any business application.
People : Users.
Hardware : Computer, associated peripherals, and their network.
Software : System software and Application software.
These are the five pillars on which Computerised Accounting System rests. This chapter discusses the concept and components of CAS alongwith its advantages and disadvantages. It is followed by the discussion of software packages on CAS. In this chapter we will also discuss the concept about grouping of accounts and codification methods to be used for CAS.
 
1.1 COMPUTERISED ACCOUNTING SYSTEM
Computerised Accounting System refers to the processing of accounting transaction through the use of hardware and software in order to produce accounting records and reports. CAS takes accounting 
 

NCERT Class 12 Accountancy Computerised Accounting System Overview

 

transactions as inputs that are processed through Accounting Software to generate the following reports:
• Day books/Journals
• Ledger
• Trial Balance
• Position Statement (Balance Sheet)
• Statement of Profit and Loss (Profit and Loss Account)
 
 
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