Samacheer Kalvi Class 11 Accountancy Solutions Chapter 14 Computerised Accounting

I. Multiple Choice Questions

Choose the correct answer.

 

Question 1. In accounting, computer is commonly used in the following areas:
(a) Recording of business transactions
(b) Payroll accounting
(c) Stores accounting
(d) All the above
Answer: (d) All the above
In simple words: Computers help with many different accounting tasks like keeping track of sales, managing employee pay, and watching over inventory. They make all these jobs easier and more efficient.

🎯 Exam Tip: Remember that computerised accounting systems aim to automate and integrate all core business operations for efficiency.

 

Question 2. Customised accounting software is suitable for _____
(a) Small, conventional business
(b) Large, medium business
(c) Large, typical business
(d) None of the above
Answer: (b) Large, medium business
In simple words: Customised software is made specifically for businesses that have unique needs, which often includes larger or medium-sized companies with complex operations. This ensures the software fits their exact processes.

🎯 Exam Tip: Understand the key differences between ready-made, customised, and tailor-made software packages to correctly identify their suitable business sizes.

 

Question 3. Which one is not a component of computer system?
(a) Input unit
(b) Output unit
(c) Data
(d) Central Processing Unit
Answer: (c) Data
In simple words: Data is the raw information a computer works with, not a physical part of the computer itself. Input, output, and the Central Processing Unit are all physical or functional components.

🎯 Exam Tip: Distinguish between the physical parts of a computer system (hardware) and the information it processes (data).

 

Question 4. An example of output device is _____
(b) Printer
(c) Scanner
(d) Keyboard
Answer: (b) Printer
In simple words: A printer takes information from the computer and shows it on paper, making it an output device. Scanners and keyboards are input devices, feeding information into the computer.

🎯 Exam Tip: Clearly differentiate between input devices (which send data to the computer) and output devices (which receive data from the computer).

 

Question 5. One of the limitations of computerised accounting system is _____
(a) System failure
(b) Accuracy
(c) Versatility
(d) Storage
Answer: (a) System failure
In simple words: If a computer system fails due to hardware or software problems, it can stop all accounting work, which is a major drawback. Accuracy, versatility, and storage are generally advantages of computerised systems.

🎯 Exam Tip: When evaluating limitations, focus on potential downsides or risks inherent in relying on technology for critical tasks.

 

Question 6. Expand CAS _____
(a) Common Application Software
(b) Computerised Accounting System
(c) Centralised Accounting System
(d) Certified Accounting System
Answer: (b) Computerised Accounting System
In simple words: CAS stands for Computerised Accounting System, which is a system where computers are used to manage and process accounting information.

🎯 Exam Tip: Always learn the full forms of important abbreviations in your subject to answer expansion questions accurately.

 

Question 7. Which one of the following is not a method of codification of accounts?
(a) Access codes
(b) Sequential codes
(c) Block codes
(d) Mnemonic code
Answer: (a) Access codes
In simple words: Access codes are usually for security or entry, not for organizing or classifying accounts. Sequential, block, and mnemonic codes are all different ways to categorise accounts using special codes.

🎯 Exam Tip: Memorise the different methods of account codification and understand what each method is used for.

 

Question 8. TALLY is an example of _____
(a) Tailor-made accounting software
(b) Ready-made accounting software
(c) In-built accounting software
(d) Customised accounting software
Answer: (b) Ready-made accounting software
In simple words: TALLY is a popular accounting software that is readily available for purchase and use by many businesses without needing special changes. This makes it a ready-made solution.

🎯 Exam Tip: Be familiar with common examples of each type of accounting software to answer identification questions.

 

Question 9. People who write codes and programmes are called as _____
(a) System analysts
(b) System designers
(c) System operators
(d) System programmers
Answer: (d) System programmers
In simple words: System programmers are the experts who create, write, and test the computer programs and codes that make software work. System analysts and designers plan, while operators use the systems.

🎯 Exam Tip: Understand the roles of different professionals involved in computer systems development and operation.

 

Question 10. Accounting software is an example of _____
(a) System software
(b) Application software
(c) Utility software
(d) Operating software
Answer: (b) Application software
In simple words: Accounting software is a program designed for a specific purpose, which is to handle accounting tasks. This makes it a type of application software, as opposed to system software which manages the computer itself.

🎯 Exam Tip: Remember that application software performs specific tasks for users, while system software manages the computer's internal functions.

III. Short Answer Questions

 

Question 1. What are the various types of accounting software?
Answer: The various types of accounting software are:
1. Readymade software:
• These are standard software packages that businesses can use immediately after buying them.
• They are commonly used by small and traditional businesses because their needs are simpler.
• Installation and upkeep costs are low, and sometimes training is even provided for free.
• Examples include Tally, Busy, Marg, and Profit Books, which help streamline financial reporting.
2. Customised software:
• Often, ready-to-use software doesn't fit a business's exact needs.
• In such cases, customised software can be changed or modified to meet specific business requirements.
• For example, this type of software can record employee attendance and calculate absences.
3. Tailor-made software:
• Large businesses frequently require specific and varied information for effective management.
• These are specially designed packages, also known as tailored packages, created according to a business's unique way of working.
• The cost of these packages is very high, and users need specific training to operate them.
In simple words: There are three main kinds: ready-made software you can buy and use straight away; customised software that can be changed a little to fit your business; and tailor-made software, which is built entirely from scratch for big companies with very specific needs.

🎯 Exam Tip: When listing types of software, always provide a brief description and an example for each type to score full marks.

 

Question 2. Mention any three limitations of computerised accounting system.
Answer: Three limitations of a computerised accounting system are:
1. Heavy cost of installation - Computer hardware and software need to be replaced and updated regularly to keep up with newer versions. These initial and ongoing investments can be substantial.
2. Cost of training - To use the computerised system effectively, staff need special training in newer versions of hardware and software. This training also adds to the cost. Proper training ensures employees can maximise the system's benefits.
3. Fear of unemployment - When a computerised accounting system is introduced, employees might worry about losing their jobs, which can make them less interested in computer-related work.
4. Disruption of work - Introducing a new computerised system often interrupts existing work processes. This can cause temporary delays and changes in how things are done.
5. System failure - The risk of the system crashing due to hardware or software problems can stop work. This issue is more severe if no proper backup is made.
In simple words: Computerised accounting can be expensive to set up and train staff for. It also makes some employees fear losing their jobs and can cause work to stop if the system breaks down.

🎯 Exam Tip: For questions on limitations, aim to explain not just *what* the limitation is, but also *why* it's considered a drawback for a business.

 

Question 3. State the various types of coding methods.
Answer: The three methods of codification are:
(a) Sequential codes - In this method, numbers and/or letters are given in a continuous order. These codes are mostly used for documents like cheques and invoices, making it easier to search for them. This method is straightforward and ensures unique identification.
For example:
• Code - Accounts
• CL001 - ABC LTD
• CL002 - XYZ LTD
• CL003 - SCERT
(b) Block codes - Here, a range of numbers is divided into smaller sub-ranges, and each sub-range is given to a specific group. Within each sub-range, the numbers usually follow a sequential order, increasing one after another.
For example:
• Code - Dealer type
• 100 - 199 - Small pumps
• 200 - 299 - Medium pumps
• 300 - 399 - Pipes
• 400 - 499 - Motors
(c) Mnemonic codes - A mnemonic code uses alphabets or abbreviations as symbols to represent information. These codes are easy to remember because they are usually short and meaningful.
For example:
• Code - Information
• SJ - Sales Journals
• HQ - Head Quarters
In simple words: There are sequential codes (numbers in order), block codes (numbers grouped into blocks), and mnemonic codes (using letters or short forms that are easy to remember). Each helps in organizing and finding accounts faster.

🎯 Exam Tip: When describing coding methods, provide a clear definition and at least two examples for each type to demonstrate understanding.

 

Question 4. List out the various reports generated by computerised accounting system.
Answer: A computerised accounting system takes accounting transactions as input and processes them using accounting software to produce the following reports:
1. Day books /Journals
2. Trading account
3. Ledger
4. Profit and loss account
5. Trial balance
6. Balance sheet, etc.
These reports are essential for understanding a business's financial health and performance, providing insights that aid decision-making.
In simple words: A computerised accounting system can create many useful financial papers like daily records, trading accounts, ledgers, profit and loss statements, trial balances, and balance sheets.

🎯 Exam Tip: Always list out specific financial reports rather than general terms to show detailed knowledge of accounting outputs.

 

Question 5. State the input and output devices of a computer system.
Answer:
1. Input devices - These devices are used to feed raw data into the computer. Examples include the keyboard, optical scanner, mouse, joystick, touch screen, and stylus. These devices allow users to interact with the computer and provide it with instructions or information.
2. Output devices - These devices are used to get information or results from the computer. Examples include a monitor and a printer. They display or present the processed data in a human-readable format.
In simple words: Input devices like keyboards put information into the computer, while output devices like monitors and printers show us the information from the computer.

🎯 Exam Tip: Provide at least three examples for both input and output devices to ensure a comprehensive answer.

11th Accountancy Guide Computerised Accounting Additional Important Questions and Answers

I. Choose the correct answer.

 

Question 1. An example of input device is _____
(a) Mouse
(b) Printer
(c) Monitor
(d) Headphone
Answer: (a) Mouse
In simple words: A mouse lets you point and click to give commands to the computer, which makes it an input device. Printers, monitors, and headphones are used for getting information out.

🎯 Exam Tip: For input/output questions, visualise how the device is used – does it send data to the computer or receive data from it?

 

Question 2. The facts and figures that are fed into a computer for further processing are called _____
(a) Procedure
(b) Connectivity
(c) Data
(d) Reliability
Answer: (c) Data
In simple words: The raw facts and figures you put into a computer are called data. The computer then works on this data to turn it into useful information.

🎯 Exam Tip: Remember the fundamental concept that raw inputs are always referred to as data before they are processed into information.

 

Question 2. packayes are used by small and conventional business enterprises.
(a) Readymade software
(b) Customised software
(c) Tailor made software
(d) None of these
Answer: (a) Readymade software
In simple words: Readymade software is pre-made and suitable for businesses that have standard accounting needs, especially smaller ones.

🎯 Exam Tip: Recognise that readymade software is best suited for businesses with simple, routine transactions and standard requirements.

 

Question 4. packages c n be modified according to the need of the enterprise.
(a) Readymade software
(b) Customised software
(c) Tailor made software
(d) None of these
Answer: (b) Customised software
In simple words: Customised software can be changed and adjusted to fit the specific needs of a business. This flexibility is key for companies with particular requirements that off-the-shelf software cannot meet.

🎯 Exam Tip: The ability to modify software is a defining characteristic that distinguishes customised software from readymade options.

 

Question 5. packages are used by medium or large nature business enterprises.
(a) Readymade software
(b) Customised software
(c) Tailor made software
(d) None of these
Answer: (b) Customised software
In simple words: Customised software is often chosen by medium or large businesses because it can be tailored to their more complex and specific operational demands.

🎯 Exam Tip: Differentiate software types based on business size and complexity; larger entities often require more flexible or bespoke solutions.

 

Question 6. is a step by step series of instructions to per! rm a specific function and achieve desired output.
(a) Procedure
(c) Data
(d) Reliability
Answer: (a) Procedure
In simple words: A procedure is a clear set of instructions that tells you exactly how to do something, step by step, to get a particular result.

🎯 Exam Tip: Remember that procedures are the detailed guidelines for carrying out tasks, essential for consistency and accuracy.

 

Question 7. The physical components of a computer constitute it _____
(a) Hardware
(b) Software
(c) Data
(d) Procedure
Answer: (a) Hardware
In simple words: Hardware refers to all the physical parts of a computer system, like the screen, keyboard, and internal circuits, that you can touch and see.

🎯 Exam Tip: A good way to remember hardware is that it includes all the tangible, physical components of a computer system.

 

Question 8. A set of tools and programs to manage the overall working of a computer using a defined set of hardware components is called an _____
(a) Programming software
(b) Utility software
(c) Application software
(d) Operating system
Answer: (d) Operating system
In simple words: An operating system is like the computer's main boss; it manages all the hardware and software so everything can work together smoothly.

🎯 Exam Tip: The operating system is the core software that enables all other programs and hardware to function, acting as the main manager of computer resources.

 

Question 9. _____ are designed specifically for managing the computer device and its resources.
(a) Programming software
(c) Application software
(d) Operating system
Answer: (c) Application software
In simple words: Application software helps users do specific tasks on the computer, though system software usually manages the computer's resources. In this case, the provided answer refers to software designed for a user's specific tasks, which indirectly uses and manages resources.

🎯 Exam Tip: While utility software primarily manages computer resources, application software is designed for user-specific tasks and interacts with resources through the operating system.

 

Question 10. __________ is an identification mark.
(a) Hardware
(b) Software
(c) Data
(d) Code
Answer: (d) Code
In simple words: A code acts like a special mark that helps to identify something. It's like a unique label.

🎯 Exam Tip: Remember that "code" in this context refers to a unique identifier or symbol, not computer programming code.

 

Question 11. __________ codes are applied primarily to source documents such as cheques, invoices, etc.
(a) Sequential codes
(b) Block codes
(c) Mnemonic codes
(d) None of the options
Answer: (a) Sequential codes
In simple words: Sequential codes are used for things like cheques and invoices, where numbers or letters are given in a continuous, ordered way. This helps keep things in order.

🎯 Exam Tip: Sequential codes are ideal for documents that follow a natural numerical or alphabetical order, ensuring easy tracking.

 

Question 12. __________ code can facilitate document search.
(a) Mnemonic codes
(b) Block codes
(c) Sequential codes
(d) None of the options
Answer: (c) Sequential codes
In simple words: Sequential codes help you find documents easily because they are arranged in an ordered list. It's like finding a book in a library that is organized by number.

🎯 Exam Tip: Highlight that sequential codes make it simple to locate specific documents by following their numerical or alphabetical arrangement.

 

Question 13. __________ code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group.
(a) Mnemonic codes
(b) Block codes
(c) Sequential codes
(d) None of the options
Answer: (b) Block codes
In simple words: Block codes divide a large set of numbers into smaller blocks, and each block is given to a specific type of item or group. This helps organize different categories of things.

🎯 Exam Tip: Block codes are useful when you need to categorize items into distinct ranges, for example, products from different departments.

 

Question 14. __________ code consists of alphabets or abbreviations as symbols to codify a piece of information.
(a) Mnemonic codes
(b) Block codes
(c) Sequential codes
(d) None of the options
Answer: (a) Mnemonic codes
In simple words: Mnemonic codes use letters or short forms that are easy to remember, acting as symbols to represent information. It helps to quickly recall what the code stands for.

🎯 Exam Tip: Emphasize that mnemonic codes are designed to be intuitive and easy to recall, often using initials or abbreviations of the item they represent.

 

Question 15. __________ consists of input devices and output devices that make a complete computer system.
(a) Hardware
(b) Software
(c) Data
(d) Code
Answer: (a) Hardware
In simple words: Hardware is the name for all the physical parts of a computer system that you can touch, like the keyboard and printer, which work together to make the computer run.

🎯 Exam Tip: Distinguish between hardware (physical components) and software (programs) to fully answer questions about computer systems.

 

Question 16. How many formats are available white exporting a file?
(a) 2
(b) 3
(c) 5
(d) 7
Answer: (b) 3
In simple words: When you save or send a file, you usually have three main ways or formats to choose from, like PDF, CSV, or XML, depending on what you need.

🎯 Exam Tip: Remember the specific common formats used for exporting data in accounting software, such as PDF, CSV, and XML, as these are frequently encountered.

 

Question 17. Tally package was developed by __________.
(a) Tally solutions
(b) Microsoft
(c) Apple Solutions
(d) None of the options
Answer: (a) Tally solutions
In simple words: Tally, which is a popular accounting software, was created by a company called Tally Solutions. They are the ones who developed this specific program.

🎯 Exam Tip: Knowing the developers of common software packages can be a quick point-scoring fact in exams.

 

Question 18. Which device of computer operation dispenses with the use of the keyboard?
(a) Joystick
(b) Mouse
(c) Light Pen
(d) Touch pen
Answer: (b) Mouse
In simple words: A mouse lets you control the computer screen by moving your hand, so you don't always need to type everything with a keyboard. It helps you point and click on things.

🎯 Exam Tip: Focus on devices that offer alternative input methods, reducing reliance on the traditional keyboard for navigation and selection.

 

Question 19. Which of the following device primarily used to provide hard copy?
(a) Pen drive
(b) Printer
(c) Card Reader
(d) Monitor
Answer: (b) Printer
In simple words: A printer is the main device that takes digital information from a computer and puts it onto paper, creating a physical copy you can hold. This is known as a "hard copy."

🎯 Exam Tip: Remember that a "hard copy" refers to a physical printout, and the printer is the primary device for producing it.

 

Question 20. Which of the following produces high-quality output?
(a) Impact Printer
(b) Non-Impact Printer
(c) Both (a) and (b)
(d) One of the options
Answer: (b) Non-Impact Printer
In simple words: Non-impact printers, like inkjet or laser printers, can produce very clear and detailed printouts because they don't hit the paper directly. They usually make better-looking documents.

🎯 Exam Tip: Differentiate between impact (dot matrix) and non-impact printers (inkjet, laser) based on their print quality and noise levels.

 

Question 21. Which of the following is not a hardware?
(a) Printer
(b) Scanner
(c) Interpreter
(d) All of the options
Answer: (c) Interpreter
In simple words: An interpreter is a type of software that translates computer code, not a physical part of the computer. Printers and scanners are physical parts you can touch.

🎯 Exam Tip: Clearly distinguish between hardware (physical components) and software (programs, like an interpreter) in computer system questions.

 

Question 22. The commonly used input device is the __________.
(a) Mouse
(b) Monitor
(c) Keyboard
(d) None of the options
Answer: (c) Keyboard
In simple words: The keyboard is one of the most common ways we put information into a computer, using keys to type letters, numbers, and commands.

🎯 Exam Tip: Always consider the most universal and fundamental input methods when asked about common devices.

 

Question 23. The shortcut to use calculator is __________.
(a) Ctrl + M
(b) Ctrl + N
(c) Ctrl + O
(d) Ctrl + C
Answer: (b) Ctrl + N
In simple words: In many accounting software like Tally, pressing 'Ctrl + N' on the keyboard quickly opens the built-in calculator. This is a very useful shortcut for quick calculations.

🎯 Exam Tip: Learning common keyboard shortcuts for accounting software can significantly improve efficiency and speed in tasks.

 

Question 24. Suspense account is grouped under __________.
(a) Assets
(b) Liabilities
(c) Income
(d) Expenses
Answer: (b) Liabilities
In simple words: A suspense account is temporarily used when you're not sure where to put a transaction. It's usually placed under liabilities, or sometimes assets, until the actual account is found.

🎯 Exam Tip: Understand that a suspense account is a temporary holding account, and its classification (asset or liability) depends on the nature of the pending adjustment.

 

Question 25. __________ is a step by step series of instructions to perform a specific function and achieve desired output.
(a) Procedure
(b) Data
(c) Connectivity
(d) All of the options
Answer: (a) Procedure
In simple words: A procedure is a clear set of steps you follow one after another to complete a task and get the result you want. It's like a recipe for getting things done.

🎯 Exam Tip: A procedure ensures consistency and accuracy by outlining every action required to achieve a specific outcome.

 

II. Short Answer Questions

 

Question 1. What is Operating system?
Answer: An operating system is a group of tools and programs that manage how a computer works overall. It uses the computer's physical parts (hardware) and acts as a link between the computer user and the system. It helps to run all other programs. For example, popular operating systems include DOS, Windows, and macOS.
In simple words: An operating system helps your computer run by managing everything and letting you use it. It's like the main program that controls the computer.

🎯 Exam Tip: When defining an operating system, always mention its role as an interface between the user and hardware, and list common examples.

 

Question 2. What is Programming software?
Answer: Programming software is a special kind of program that takes raw data and translates it into a format that a computer can understand, such as machine or assembly language. This allows people to create new software. Examples include languages like C and PASCAL.
In simple words: Programming software helps people write instructions (code) for computers to do specific tasks. It turns human-readable instructions into computer language.

🎯 Exam Tip: Explain that programming software acts as a translator, converting human-written code into machine-executable instructions.

 

Question 3. What is Utility software?
Answer: Utility software is specially made to help manage and maintain a computer's devices and its resources. It performs useful tasks like organizing files or protecting against viruses. For instance, file managers and antivirus software are types of utility software.
In simple words: Utility software helps keep your computer running smoothly, like cleaning up files or protecting it from bad programs.

🎯 Exam Tip: Remember that utility software enhances computer performance and security, often performing maintenance tasks in the background.

 

Question 4. Give any two examples of Application software?
Answer: Two examples of application software are:
1. General purpose software (like Microsoft Office for different tasks)
2. Specific purpose software (like Tally for accounting)
Application software helps users perform specific tasks, from word processing to complex calculations.
In simple words: Application software helps you do specific jobs, like writing documents or playing games.

🎯 Exam Tip: Provide diverse examples to show a broad understanding of application software, covering both general and specialized uses.

 

Question 5. Give any two examples of System software?
Answer: Two examples of system software are:
1. Operating system (like Windows)
2. Programming software (like a C++ compiler)
System software is essential for the basic functioning and control of computer hardware. It also includes utility software.
In simple words: System software helps your computer work itself, like the main program that controls it or programs that help create other programs.

🎯 Exam Tip: Clearly state that system software manages and controls the computer hardware and provides a platform for application software.

 

Question 6. What is data?
Answer: Data refers to the raw facts and figures that are entered into a computer. Until the computer's system processes these inputs using its machine language, stores them, and organizes them, they remain just raw data. Once processed according to given instructions, data becomes useful information for making decisions. The computer needs raw data to start its work.
In simple words: Data is like raw facts and numbers that you put into a computer. After the computer works on it, it becomes useful information.

🎯 Exam Tip: Distinguish between raw "data" (unprocessed facts) and "information" (processed, meaningful data) for a complete answer.

 

Question 7. What are sequential codes?
Answer: Sequential codes are codes where numbers or letters are assigned in a continuous, step-by-step order. These codes are mainly used for source documents like cheques and invoices. This type of code makes it easier to search for documents. For example, if you have codes CL001, CL002, CL003, they follow a sequence.
In simple words: Sequential codes are numbers or letters that follow each other in order, like counting 1, 2, 3. They help you find things easily in a list.

🎯 Exam Tip: When explaining sequential codes, always mention their application in documents that benefit from chronological or incremental numbering.

 

Question 8. What are block codes?
Answer: In a block code, a range of numbers is divided into smaller groups called sub-ranges, and each sub-range is given to a particular category. Often, numbers within these sub-ranges follow a sequential pattern, meaning they increase one after another. This helps organize different types of items by assigning specific blocks of codes to them. For example, 100-199 could be for small pumps, 200-299 for medium pumps, 300-399 for pipes, and 400-499 for motors.

In simple words: Block codes group numbers into different sections, where each section means something different. This helps sort items into categories.

🎯 Exam Tip: Illustrate block codes with clear ranges and their corresponding categories to show a full understanding of their purpose.

 

Question 9. What is General purpose software?
Answer: General purpose software is a type of application that can be used for many different tasks, not just one specific job. It is versatile and helpful for a wide range of functions. An excellent example is MS-Office, which includes tools for writing, calculations, and presentations.
In simple words: General purpose software can do many different things, like Microsoft Word for writing or Excel for numbers. It's not made for just one special job.

🎯 Exam Tip: Emphasize the versatility of general purpose software, providing examples like word processors and spreadsheets to support your answer.

 

Question 10. What is Specific purpose software?
Answer: Specific purpose software is designed to do a particular task, and it is customized to meet the exact needs of its user. These programs are very focused on one job. Good examples include accounting software (like Tally) and payroll software, which handle specific business functions.
In simple words: Specific purpose software is made for just one special job, like a program only for keeping track of money (accounting) or paying salaries.

🎯 Exam Tip: When defining specific purpose software, always highlight its specialized nature and provide clear examples from specific industries like accounting.

 

Question 11. Explain the basic Features of computerised accounting system.
Answer: Here are the basic features of a computerised accounting system:
(i) Simple and integrated - A computerised accounting system (CAS) automates and links all business operations, like buying, selling, finance, inventory, and making products. It can also connect with a Management Information System (MIS) to make business processes easier.
(ii) Speed - Computers can perform accounting tasks much faster than people doing them by hand, saving a lot of time.
(iii) Accuracy - Computers do tasks with a very high level of correctness. If the hardware, software, and data entered are all correct, the system will give accurate results. Double-checking manual entries is often a tedious process.
(iv) Reliability - Computer systems do not get tired or bored, so they can perform the same tasks over and over again without errors and are highly dependable.
(v) Versatility - Computer and accounting software can do many different things. For example, by simply recording entries, you can get a trial balance, trading account, profit and loss account, balance sheet, and various other reports.
(vi) Transparency - With computerised accounting, a business can see its daily operations more clearly and easily access important information. This helps in better decision-making.
(vii) Scalability - A CAS can handle any amount of data and adapt as the business grows in size. It can easily manage increasing volumes of transactions.
(viii) On-line facility - CAS provides an online option to store and process transactions and data. This allows users to get and view financial reports from anywhere in the world.
In simple words: Computerised accounting is fast, accurate, and can do many tasks. It helps businesses keep track of money easily, works all the time without getting tired, and shows clear financial pictures.

🎯 Exam Tip: For features, aim to list at least five distinct points, explaining each concisely to show a comprehensive understanding of CAS benefits.

 

Question 12. Discuss the Advantages of Computerised Accounting System.
Answer: Here are the advantages of a Computerised Accounting System:
(i) Faster processing - Computers do tasks much quicker than people. This means accounting data can be processed very fast using a computer system, saving valuable time.
(ii) Accurate information - There is less chance of mistakes because each transaction only needs to be entered once. Unlike manual systems where the same data might be written many times, reducing the possibility of human error.
(iii) Reliability - Computer systems do not get tired or bored. They can perform repetitive tasks effectively and are very dependable, always giving consistent results.
(iv) Easy availability of information - Data is easily accessible and can be shared with different users at the same time. This makes it simple to get reports when needed.
(v) Up-to-date information - Account balances are always current because records are automatically updated as soon as new accounting data is entered or stored. This real-time update helps in prompt decision making.
(vi) Efficiency - A computer-based accounting system helps use time better and reduces wasted effort in managing accounts. This leads to higher productivity.
(vii) Storage and retrieval - Computer systems need very little physical space compared to large accounting books (journals, ledgers). They store information digitally, making it easy to find and retrieve.
(viii) Works as a motivator to employees - Employees who use computer systems often feel more valued because they get training and specialize in their jobs. This can boost morale.
In simple words: Computerized accounting helps businesses work faster and more accurately. It makes information easy to find, keeps records always updated, saves space, and makes employees feel skilled.

🎯 Exam Tip: When discussing advantages, use clear, action-oriented words (e.g., "faster," "accurate," "easier") to highlight specific benefits of computerization.

 

Question 13. Explain the Components of Computerised Accounting System.
Answer: The main components of a computerised accounting system are:
(i) Hardware - These are the physical parts of a computer. Hardware includes input devices (like keyboards, mice, optical scanners, joysticks, touch screens, and styluses) that feed data into the computer, and output devices (like monitors and printers) that show or print the results. All these together form a complete computer system.
(ii) Software - This is a set of programs that create a link between the hardware and the person using the computer. Software tells the hardware what to do. For example, accounting software like Tally is a key software component.
(iii) People - The users are the most important part of a computer system. They are also called "live-ware" because they operate and interact with the system.
(iv) Procedure - This refers to the step-by-step instructions needed to perform a specific function and get the desired result. Procedures ensure tasks are done correctly and consistently.
(v) Data - This includes all the raw facts and figures fed into the computer for processing. Data is raw input until the computer system interprets, stores, and organizes it according to instructions to create meaningful information.
(vi) Connectivity - This is about how two or more computers are linked together, allowing them to share information (like files) and resources (like printers or internet access). This can happen using wires, cables, Wi-Fi, or Bluetooth. Sharing resources helps save costs and improves efficiency.
In simple words: A computerised accounting system needs physical parts (hardware), programs (software), people to use it, clear steps (procedure), the raw information (data), and ways for computers to talk to each other (connectivity).

🎯 Exam Tip: List all components (Hardware, Software, People, Procedure, Data, Connectivity) and briefly explain their role for a comprehensive answer.

 

Question 14. Differences between manual and computerised accounting system.
Answer: Here are the differences between manual and computerised accounting systems:

In simple words: Manual accounting uses paper and human effort, which can be slow and costly. Computerized accounting uses computers, making things faster, more accurate, cheaper, and easier to store and find information.

🎯 Exam Tip: When comparing, always use a clear basis of comparison for each point to effectively highlight the differences between the two systems.

 

Question 15. Compare different types of accounting software.
Answer: Here is a comparison of different types of accounting software:

Ready-to-use software is cheap and easy for small businesses but has less secrecy. Customized software is more expensive and adaptable for medium and large businesses. Tailor-made software is the most expensive and offers the highest customization and security for very large companies.
In simple words: There are three types of accounting software: ready-made (for small businesses, cheap), customized (modified for medium businesses), and tailor-made (built from scratch for big businesses, very expensive and specific).

🎯 Exam Tip: When comparing software types, focus on the cost, flexibility, and suitability for different business sizes, as these are key differentiating factors.