Maharashtra Board Class 12 Book Keeping and Accountancy Chapter 10 Computer In Accounting PDF Download

Computer In Accounting

10.1 Concept Of Computerized Accounting System (CAS)

Computers and Information Technology have changed modern business. Now decision making is quick, accurate, timely and easy. A computerized accounting system helps to do accounting work with automation. It is user friendly.

Computerized accounting systems are software programs. These programs help to store data and information. The system is connected via computer, network server or Internet. Companies prepare reports and statements using computerized accounting software.

The most important thing is that companies prepare their reports as per Generally Accepted Accounting Principles (GAAP) using this system.

Teacher's Note

Computerized accounting is like Aadhaar. Just like Aadhaar stores all your information digitally, accounting software stores all business data digitally. Banks in India use this system every day to keep customer records.

Exam Trick

Remember: CAS = Computer + Accounting = Fast, accurate, no paper. Think of it like online banking - everything is stored in the computer, not in books.

Points to Remember

Computerized accounting uses software programs.
It stores business data and information.
It is connected through computer and Internet.
Companies can prepare reports easily.
Reports follow GAAP rules.

10.2 Features Of Computerized Accounting System

1. Integrated Data And Information: The system is designed to be user friendly and automated. It helps with business work like purchase, sales, finance, inventory, payroll and manufacturing. All business information is accurate and up to date. The system is cost effective.

2. Accuracy And Speed: The system has customized templates and software. Users can enter data fast and accurately. The computer automatically generates reports and information after recording transactions.

3. Quick Decision Making: The system generates real time information. Company managers can plan activities quickly. They get instant access to complete company information.

4. Modern And Integrated: The system saves time compared to manual accounting. Financial statements like Trial Balance, Profit And Loss Account, and Balance Sheet can be made in seconds.

5. Immediate Availability Of Books Of Accounts: Books and Registers like Cash Book, Bank Book, Purchase Register, and Sales Register are ready at any time. Statements of Receivables and Payables are available instantly.

6. Security: The system is more secure than traditional accounting. Data and information stay confidential. Users can create passwords and security control for different users.

7. Transparency: The system helps businesses keep greater transparency in day to day operations.

8. Grouping Of Accounts: Accounts must be grouped properly. Ledger accounts are classified under groups like Assets, Liabilities, Income and Expenditure. These groups can be further divided into sub groups.

Teacher's Note

Features are like qualities of a good student - accurate, fast, organized and honest. Just like a student who is accurate gets good marks, accurate accounting helps businesses make right decisions.

Exam Trick

Remember the 8 features using first letters: I-A-Q-M-I-S-T-G (Integrated, Accuracy, Quick, Modern, Immediate, Security, Transparency, Grouping). Make this your memory word.

Points to Remember

Integrated data means all business work is together.
Speed and accuracy are very high.
Decision making is quick because information is instant.
Books are available anytime, anywhere.
Data is safe and secure with passwords.

10.3 Importance Of Computerized Accounting System

Computerized accounting systems are very important for all types of business organizations, firms and companies.

1. Automation: The computer automatically does all calculations. This takes less time than manual calculations.

2. Multi-User Facilities: Many users can access accounting information online or offline. They can work from office or outside office. In big companies, many operators can enter data on different computers at the same time.

3. Accuracy: Computer software is more accurate than human beings. All calculations like additions, subtractions and statistical calculations are done automatically by the software.

4. Speed: The software works faster than manual accounting. It generates all financial statements and reports quickly as per user requirements.

5. Reduction In Cost: Financial records are entered only once. The accountant saves time in maintaining records. The business needs to employ fewer accounting staff.

6. Systematic And Up To Date Records: The system ensures that financial records are systematic and up to date.

7. Huge Storage Capacity: In manual accounting, separate books are needed for each year. In computerized system, one software can store accounting records for many years.

8. Compact: The computer can store large amounts of financial data in a compact way. Information can be stored on the hard disk. Back up can be taken on external storage devices which need very little space.

9. Transferability And Sharing Information: The system allows businesses to share financial information with interested parties. Information can be shared through printouts or soft copy like pen drive or Internet transfer.

Teacher's Note

Importance means why it is useful. Think of it like a mobile phone - it is important because it is fast, accurate, can store lots of information, and we can share it easily. Same with computerized accounting.

Exam Trick

Remember: 9 importances but the easiest to remember is FAST-SAFE-SAVE. Fast (speed), Safe (security), Save (reduction in cost and storage). These three cover most benefits.

Points to Remember

Automation does all work by computer.
Multi user means many people can use it together.
It is very accurate with no human mistakes.
It works very fast for quick reports.
It saves money and space.

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