Page 282 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting Pretty Bhalla, Lovely Professional University

Notes Unit 13: Computerised Accounting

CONTENTS
Objectives
Introduction
13.1 Role of Computers in Accounting

13.2 Computerised Accounting
13.2.1 Need and Requirements of Computerised Accounting System
13.2.2 Basic Requirements of the Computerised Accounting System
13.3 Salient Features of Computerised Accounting

13.4 Sourcing of Accounting Software
13.5 Summary
13.6 Keywords
13.7 Review Questions
13.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the role of computer in accounting;
 Differentiate between manual accounting and computerised accounting;

 State the need for computerised accounting
 Describe the basic requirements of computerised accounting.
Introduction

With the expansion of business the number of transactions increased. The manual method of
keeping and maintaining records was found to be unmanageable. With the introduction of
computers in business, the manual method of accounting is being gradually replaced. And
finally, the database technology has revolutionized the accounts department of the business
organizations.
Keeping accurate accounting records is a vital part of managing an organisation. Apart from
helping to keep it afloat financially and legally, it is also a requirement of funding bodies.
Smaller groups can usually manage with simple bookkeeping procedures but bigger groups
juggling with larger sums of money and more complex financial transactions may find their
workload eased by using a computerised accounting system. The good news is that there are
easy to use and reasonably priced computerised accounting packages on the market that are
either aimed at, or can be adapted to, voluntary sector organizations.

13.1 Role of Computers in Accounting

The most popular system of recording of accounting transactions is manual which requires
maintaining books of accounts such as Journal, Cash Book, Special purpose books and ledger

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