\RFvA %ofK/!>XEdUN]Y0I&4[r\mB7 The software should enable the user to directly transfer the database from one system or software to another. The concept of this system had to be clear in the mind of the students. The training required to use such software is simple. <>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Secrecy of data and software can be better maintained in customized software. What do you mean by manual accounting systems? 4 0 obj They can perform certain tasks in fractions of a second. Hardware and software become outdated in years, and sometimes even in months due to the constant improvement in technology. Computerised accounting refers to the system of accounting in which financial records are maintained electronically using an accounting software. : The reporting system is an integrated set of various objects that form the report using the information. \7^Qyg5,6*FcPG@MD*^f 1b1-n &a'{R Ld0G>KFe,CPgDS5 ,1kQ3eyY!0_7$7Jw-Py E7LB1&E_1:fCsA3[bD_KH,ER7`$wVDC Academia.edu no longer supports Internet Explorer. Also, the requirement of specialised staff means that more work hours would be required for training purposes until the staff is well-adapted to the new system. 2. j9qp d/J$IN``, .~4I# MDH3,QX:qPUY ,bf^I c 6L0' Sometimes, certain software which appears cheap to buy, involve heavy maintenance and alteration costs. Students follow the revising strategy mandatorily to prepare for the HS exam, they should revise side by side of their new learning: 1. This point too needs to be well read by the students as questions may arise from these sections. The computerised accounting systems usually consist of a standardised format of accounting reports, which are defined by the user. Standardized accounting software available in the market may not suit or fulfill the user requirements. 3) Disruption: When an organisation switches from a manual accounting system to a computerised accounting system, a lot of working hours are lost because of the changes in the working environment. Before getting settled on a software package, it is crucial to understand the different types of accounting software and when each should be utilised. @`&^ KH nKbpbBJULVrTYm8pLQ$x%(ZJ@q+7d^BA'mu3.&ME3-j!%3#o@E_iN H'=UN8BIdFe--%_KS'z3 X{0!du@Q`%B!Ae6:`OVe$CuxH$G`l^_RTz 6) Automated Document Production: The computerised accounting systems usually consist of a standardised format of accounting reports, which are defined by the user. A tailored software provides great security, but is expensive as compared to ready-to-use software. Similarly, an accounting software can appear expensive, but might involve very less installation and maintenance costs, making it a more feasible option. Manual accounting refers to the system of accounting in which financial records are maintained using physical books, registers, and books of accounts. Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. A simple guideline to take such a decision is the cost benefit analysis of the available options and the financing opportunities available to the firm. Thus, it saves a large amount of physical space while storing a higher amount of data as compared to manual accounting systems. For example: Transferring information from ledger to spreadsheet software. The other popular softwares are Sage, Wings 2000, Best Books, Cash Manager, and Ace Pays, etc. A very important chapter as well, in regard to the practicality of the business as well as examination point of view. Chapter-6 Trial Balance And Rectification Of Errors, Chapter-7 Depreciation, Provisions And Reserves, Chapter-11 Accounts From Incomplete Records, Chapter-12 Applications Of Computers In Accounting, Chapter-14 Structuring Database For Accounting, Chapter-15 Accounting System Using Database Management System, Revision Notes for Class 11 Business Studies, CBSE Previous Year Question Paper for Class 10, CBSE Previous Year Question Paper for Class 12. 0YwfY5G:A Conversely, the accounting software which appear initially expensive to buyers, may require least maintenance and free upgrading and negligible alteration costs. A computerized 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. 2. Do you need help with your Homework? Both hardware and software are interdependent. This removes the possibility of the data being difficult to read due to untidy written figures such as in a manual accounting system. These notes will prove to be useful only for the sake of revision, rest practical and extensive knowledge is to be accumulated for this chapter in order to truly understand its importance. They are interconnected through a wide network of computers, such that the information is available and accessible to multiple users simultaneously. This includes flexibility of the software, costs of installing, size of the organisation, level of secrecy, etc. The operating system also affects the security of the system. The size of organization and the volume of business transactions do affect the software choices. They are stored on a computer, network server, or remotely via the Internet. @'tG \^$1%- FQ(9qnt@J=`zcC7K88*R kyRD"?q7GCa>;H:5v$(,j\5"P[0`{PVE?PcX@ 9H

However, some other complex software packages linked to other information systems require intensive training on a continuous basis. #Y14_P5xrF@LO'N+STdEc50YcUl3>7fZ`0K{A)B(d#%F There are many types of accounting software, one among them is Commercial off-the-shelf software. 7. Every computerized accounting system has two basic requirements; Suitably with the operating environment of the organization. Another consideration before buying accounting software is the security features, which prevent unauthorized personnel from accessing and/or manipulating data in the accounting system. Ready-to-use software is relatively easier to learn and people (accountant) adaptability is very high. It is automatically prepared and provided on a daily basis. This software is essential for an organization's efficient management. The MIS reports and the degree to which they are used in the organization also determine the acquisition of software. This accounting software is designed to meet your company's particular accounting requirements. 2) Operating Procedure: The operating procedure should be well-defined, and it should be suitably blended with the organisations operating environment. Physical records, pads of paper, and books are used in manual accounting systems when transactions are manually recorded. Limitations of Computerised Accounting System. This results in high training costs because the staff are trained through a continuous use of the hardware and software. The software should prevent unauthorised access to the system. The Computerised system can process and store a large amount of data. Hence to achieve the same students of standard 11 are guided by us in this revision material. It may be observed that conceptually, the accounting process is identical regardless of the technology used. 3. The reputation and capability of the vendor must be considered before sourcing the accounting software. However, the installation and training costs are relatively high. 2) Back-end Database: This is the data storage system which cannot be accessed by the user. This type of software is generally used by small and conventional business enterprises. Due to this, the cost of processing any additional transactions is very less as compared to manual accounting systems. Privacy Policy, Trial Balance And Rectification Of Errors, Accounting System Using Database Management System. The most popular software used in India are Tally and Ex. Organizations may need to transfer information directly from the ledger into spreadsheet software such as Lotus or Excel for more flexible reporting. Computerised accounting system ensures an optimum and efficient use of time and resources. Concept of Computerised Accounting System - The concept of this system had to be clear in the mind of the students. The computer system can perform repetitive operations without tiredness, boredom, or fatigue, and are thus, more reliable than human beings. This is a serious issue to be considered when using a computerised accounting system. b) When the new computerised accounting system is required as a replacement to an existing computerised accounting system because of changing needs of the organisation. The students can easily download the free pdf given by us and enhance their preparation level with these revision notes. Some of the advantages of computerised accounting over manual accounting system are described as follows: 1) Speed: Speed refers to the time taken by computers to complete a task or an operation. When an organisation switches from a manual accounting system to a computerised accounting system, a lot of working hours are lost because of the changes in the working environment. The accounting packages used in the computer system are generally classified into the following categories: Ready-to-use software is easy to use, cheaper to install, and suitable for small businesses. za? $nu,6\ S7m -W!U We present our capsuled revision notes for the chapter that will help the students in revising the same. This is not restricted in Windows. Before the exam, they can only revise this chapter and focus more in the practical chapters by investing less time in this chapter. Due to this, the organisation conducts special training of their staff. N%TW(K. MS Word, MS Excel, etc. The need to acquire an accounting software arises in the two cases stated below: a) When the computerised accounting system is implemented as a replacement to an existing manual accounting system. This removes the possibility of the data being difficult to read due to untidy written figures such as in a manual accounting system. 1. Most computerised accounting systems are based on databases that are well organised. This is a new research project that the student should be aware of and comprehend. The computerised accounting system assists the management in effective control and monitoring of the business by enabling real time production of reports related to management information. Students can access the notes provided by Vedantu anywhere and anytime as per their convenience. 9) Efficiency: Computerised accounting system ensures an optimum and efficient use of time and resources. endobj 1 0 obj

3 0 obj Contact Us | The accounting systems are not limited to one computer screen. :t)dO@EIT2$zM9F"sB3v` The reports are generated automatically by the system, and can be obtained whenever required just by a click of the mouse. The accounting software should be able to run on a wide variety of machines and systems, such as on Linux. Calculations are performed automatically by the accounting software. 6. They are interconnected through a wide network of computers, such that the information is available and accessible to multiple users simultaneously. This software requires specialized training to the users. PE/YbV&;t151*7uxJ@ >'r . In tailored software for large businesses, the user rights may be restricted to purchase vouchers for the purchase department, sales vouchers to the billing accountants and petty cash module access with the cashier. It is prepared at the end of a certain period, for example, at the end of the year. System failures such as system crashes or hardware failures can result in a huge loss of work. The NCERT Solutions are helpful to understand the chapter with great perfection. Generic Considerations - This point too needs to be well read by the students as questions may arise from these sections.

A computerised accounting system requires specialised staff. In a computerised accounting system, the data is displayed using standardised fonts. The computerized accounting is also one of the database-oriented applications wherein the transaction data is stored in well-organized database. 10) Quality Reports: The computerised accounting system helps in generating true accounting reports that are highly reliable. However, this software offers little scope of linking to other information systems. This drastically affects the efficiency with which the accounting staff can work, and also increases their medical expenditure. You can download the paper by clicking the button above. This means that the choice of the accounting software would depend upon the requirement and suitability to the organisation. Another important factor to be considered is the cost of installation and maintenance of the software. The level of secrecy is high, but the cost of training and installation is huge because specialised staff is required. Data is recorded in the customised database of the software. Also, it should offer some flexibility between the users of the software, the switch over between the accountants (users), operating systems and the hardware. This is because the system contains data handling and inbuilt checking features. The software must ensure untouched data transfer. Unanticipated errors cannot be detected because the computers lack the capability to judge. Students may easily download the free PDF from Vedantu and use these review notes to improve their preparation level. This results in a great cost to the organisation. 8) Obsolescence: A major limitation of computer systems is obsolescence. The NCERT solutions of this chapter is provided for free in our portal itself. The operating procedure should be well-defined, and it should be suitably blended with the organisations operating environment. Various upgrades are required as well to keep the systems updated. Tailored software is suitable for large business organisations which are spread out over a large geographical area. By using our site, you agree to our collection of information through the use of cookies. a"Z:F2?2]m,}rvLN8@&JV The security features of an accounting software should be checked. 2. The same data is used to prepare the accounts and make the reports. Concept of ComputerizedAccounting System. The NCERT solutions given in our portal itself includes all the NCERT based questions both broad and short.

Students revising from these notes are equally ready for the exam and have a strong foothold over the chapter, the important topics revised here are as follows: 1. This is a new research project that the student should be aware of and comprehend. nLOU The computer system can perform repetitive operations without tiredness, boredom, or fatigue, and are thus, more reliable than human beings. For storing additional vouchers, the only requirement is to introduce more data entry operators. The user should be able to run the software on variety of platforms and machines, e.g. % Disclaimer | Accounting pages feature four or more printed columns and numerous rows for the essential information, such as date, description, and monetary amounts, with natural divides. 2) Accuracy: In computerised accounting, the chance for an error to occur is eliminated because the data used is entered only once, that is at the very beginning. Let us understand these activities in the context of manual and computerized accounting system. , primarily informs students on the increasing benefits of the computerised world in business and accounting. Benefits of NCERT Solutions Chapter 13 Class 11 Accountancy Revision Notes. The process of identifying, recording, classifying and summarising financial transactions to produce the financial reports for ultimate analysis is called accounting. When the computerised accounting system is implemented as a replacement to an existing manual accounting system. This facilitates efficient decision-making and report generation. The customization includes modification and addition to the software contents, provision for the specified number of users and their authentication, etc. This facilitates efficient decision-making and report generation. First, it has to work under a set of well-defined concepts calledaccounting principles. Data is recorded in the book of original entry. The revision notes will keep them on track with the revising strategy. 2) Staff Opposition: A computerised accounting system is resisted by the existing accounting staff, because they fear that the computerised accounting system, being much better than manual accounting, would eliminate the need of the existing accounting staff, and their roles would reduce to being a data entry operator. These limitations are described as follows: 1) Cost of Training: A computerised accounting system requires specialised staff.

Accounting software is operated by people. Due to this, the organisation conducts special training of their staff. About Us | The use of computers in any database oriented application has four basic requirements as mentioned below; Comparison between Manual and Computerized Accounting. x[oGn?53}X,8d7Hw(X(w=5 RtWWWzU#~s87c{?__|eqww?yo-->>|_-BrkE#/ R"y#_EL}M:g RLj}6[]`DbZoR4uUkrk(q^ta{\ 1uMiP9 ks;>ouw-G&sYu}d} U`0V3oSvk:@2Y3]i-u5]7\dO 14m?HQ1]XK)frT3RLU3ba\$~';8sYpv[>H=]enjeRZ8DRTySe'Pq }-5LKVODx6;1xw[ @&3(x 0 uehB~aGI)vj#H3 b;{mk,c3C?OJI7)f&?RBw-!U,YV.-t i2VJ>LZe+)xWYX|zJd5r_|jHs"PBn" F 5j9R#}p@Bk89hL P0l/_\v-n]4?|6+`-aTrhEtuY+MHLHya#EVW>K;oM]f-H6%+Jg$?T* However, tailored softwares are designed in manner that they can interact and share information with the various sub components of the organizational MIS. Small organizations, e.g. 3. In a computerized accounting system, the framework of storage and processing of data is calledoperating environmentthat consists of hardware as well as software in which the accounting system, works. ;9-W~}(=_rt0 ^{% ,EWP]U0<6s1jImr|R1xE":EaEC$88zEVR:-Sq%WbLb.$YQXxFqC#W],J 4]Za_L_/"h]{B What is commercial off-the-shelf software? 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 organization. For example: In Unix, a user cannot use the computer system unless the user clicks with a password. The accounting database is well-organized with active interface that uses accounting application programs and reporting system. The solutions are very standard and hence must be studied by the students. These can be used by multiple users, and are designed for meeting their specific requirements. Accounting software is used to gather information about a company's financial sustainability and to report on it. The legal reporting requirements in a given country and the business needs affect the software contents. Small organisations do not need customised or tailored software, whereas an organisation spread over a large geographical region would require tailored software to meet their needs. Modern computerized accounting systems are based on the concept ofdatabase. The students should solve this NCERT guide as they are already solved by the experts and also this is the standard guide for the students. The secrecy and authenticity checks are robust in such softwares and they offer high flexibility in terms of number of users. Accounting Framework - The Accounting framework in regard to Computerised accounting should be clear in the minds of the students. In computerised accounting, the chance for an error to occur is eliminated because the data used is entered only once, that is at the very beginning. The same data is used to prepare the accounts and make the reports. 5. A manual accounting system is a bookkeeping system for documenting business activity transactions that do not include the use of specialist accounting software on a computer system. *_OW,X\,~*5haqPJ Accounting, by definition, is the process of identifying, recording, classifying and summarizing financial transactions to produce the financial reports for their ultimate analysis. What are the basics of Chapter 13 Class 11 Accountancy? Continuous use of the computer systems for long hours leads to various health problems such as back issues, eyestrain, muscular pain, etc. 5) Real Time User Interface: The accounting systems are not limited to one computer screen. The expertise of the people responsible for accounting is an important factor to be considered before acquiring accounting software. An accounting software can appear cheap to buy, but might involve huge installation and maintenance costs. 3. <> A major limitation of computer systems is obsolescence. Chapter 13 of Accountancy in Class 11 syllabus deals with the Computerised Accounting System. <>>> Computers, when used in any database-oriented application, have four basic requirements: 1) Front-end Interface: This acts as a link between the user and the software. Chapter 13 Class 11, primarily informs students on the increasing benefits of the computerised world in business and accounting. Despite the several advantages of computerised accounting systems, it also has some limitations that emerge from the operating environment. It responds and provides the user with the required data depending upon the extent of authority to access. The transfer of database to other systems or software is sometimes expected from the accounting software. Expected Level of Secrecy (Software and Data), Preparing for IIT JEE or AIPMT or CA CPT, Copyright Pivotal | 2 0 obj The level of secrecy is an important factor to consider because cheap accounting software is usually obtained at the cost of secrecy. 4. These limitations are as given below; Every Computerized Accounting System is implemented to perform the accounting activity (recording and storing of accounting data) and generate reports as per the requirements of the user. 5) Inability to Check Unanticipated Errors: The error detection system in the computerised accounting system is designed to detect and check known and anticipated errors. This chapter basically introduces the students about the growing advantage of the Computerised world in the business or accounting level even. The following table compares the manual accounting system to the computerised accounting system. The notes are an assurance for the students to calmly prepare them for their board exam. The training needs are simple and sometimes the vendor (supplier of software) offers the training on the software free.

11) MIS Reports: The computerised accounting system assists the management in effective control and monitoring of the business by enabling real time production of reports related to management information. For producing simplified financial statements, cash flows, and ratio analysis, a ready-to-use software is good enough. This is a serious issue to be considered when using a computerised accounting system. The user can interact with the front-end interface to communicate with the back-end database. This makes a computerised accounting system highly scalable. Vedantu provides this chapter's capsuled revision notes, which will aid students in reviewing the material. The type of the accounting system used determines the operating environment. 6h29oInPSLR$@^52@jAR4# ')D`U>T]uC$-e In terms of the practicalities of the business as well as examination, this is a significant chapter. The information kept in these ledgers will be utilized to create the company's financial statements. SRC' |w4j\5CQE7,W=-)o, BG`Ig=%4D9M 2hbV4pHO^\6(%>S9/^xh?Hza5O/~_?})#.{C?vz[whm?=Qx5^_>WvzoWiyfo.M\=;r5][@}jnsb"SD`{:y{,m ?.^fp. In some ready to use accounting softwares, the exporting, importing facility is available but is limited to MS Office modules only, e.g. In terms of the practicalities of the business as well as examination, this is a significant chapter. Thus, it saves a large amount of physical space while storing a higher amount of data as compared to manual accounting systems. Accounting software may be customized to meet the special requirement of the user. A large amount of data can be stored in a computerised accounting system within a small physical space. The user can interact with the front-end interface to communicate with the back-end database. They can perform certain tasks in fractions of a second. The reports are generated automatically by the system, and can be obtained whenever required just by a click of the mouse. 5) Inability to Check Unanticipated Errors: The error detection system in the computerised accounting system is designed to detect and check known and anticipated errors. What is a computerised accounting system Class 11? This factor involves the availability and design of various reports expected from the accounting software, the data entry, the flexibility between the multiple users, etc. %as= U$HsRU(c!6:L" Also, the requirement of specialised staff means that more work hours would be required for training purposes until the staff is well-adapted to the new system. The accounting software is generally tailored in large business organizations with multi users and geographically scattered locations. The type of software determines the structure of the hardware. 4) System Failures: System failures such as system crashes or hardware failures can result in a huge loss of work. 13) Motivation and Employees Interest: A computerised accounting system needs trained staff. UNIX environment allows multi-users compared to Windows. endobj Before sourcing an accounting software, various factors need to be considered. Accounting, generally is a subject of calculations, more than theory students here practice the sums, which is very unusual to this chapter, where theory questions are asked too hence the students might have a tendency to ignore this chapter, then they can refer to these capsuled notes to prepare for their exams. Z_[x$=&.|QAL"0uN4r12#r:Er5m]E'gN55 0ks|W*k7E)s 4. Various upgrades are required as well to keep the systems updated. Enter the email address you signed up with and we'll email you a reset link. <> The software must be capable of attracting users and, if its requires Simple training should be able to motivate its potential users. Computerized accounting systems increase inventory control and payment collection, saving time and boosting cash flow, thanks to their efficiency and ease of use. This is because the system contains data handling and inbuilt checking features. 4) Up-to-Date Information: When accounting data is entered into the computerised accounting system, the effect is recorded in all the corresponding accounts and transactions automatically. data entry and the availability and design of various reports expected from it. The computerised accounting system processes data at a much faster speed and requires far less time than human beings to perform a task. It responds and provides the user with the required data depending upon the extent of authority to access. It is somewhat adaptable to a business's needs, has many levels of error detection to avoid inaccurate data entry, and generates standard reports that can generally be customised to the user's needs. The basic features of all accounting software are same on a global basis. aqdKJMl_WEJD _ { k{n;6~.9tq$M}Ug6Y$xt,/ar}YyOYxw. This is an emerging study that is to be well acknowledged and understood by the student. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. Students may easily download the free PDF from Vedantu and use these review notes to improve their preparation level. Students can expect questions from the NCERT solutions itself. Concept of Computerised Accounting System -. The computerised accounting system processes data at a much faster speed and requires far less time than human beings to perform a task. Accounting software may be required to be linked to MIS software in the organization. It is even possible to emulate the legitimate user of a system, or discover his password through trickery, and thus gain access to the entire accounting information. 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The type of accounting software to be sourced also depends upon the size of the organisation. This boosts the morale of the staff and develops an interest for the job.