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Unit 13: Computerised Accounting

Transaction processing system (TPS): Transaction processing system (TPS) is the first stage of Notes
computerised accounting system. The purpose of any TPS is to record, process, validate and store
transactions that occur in various functional areas of a business for subsequent retrieval and usage.

13.7 Review Questions

1. Explain the role of Computers in Accounting.
2. Differentiate between Manual accounting and Computerised accounting system.
3. List the various advantages of computerised accounting systems.
4. Give two examples each of the organisations where ‘ready-to-use’, ‘customized’, and
‘tailored’ accounting packages respectively suitable to perform the accounting activity.
5. Distinguish between ‘ready-to-use’ and ‘tailored’ accounting software.
6. Define a computerised accounting system. Distinguish between a manual and computerised
accounting system.
7. Discuss the advantages of computerised accounting system over the manual accounting
system.
8. Describe the various types of accounting software along with their advantages and
limitations.
9. ‘Accounting software is an integral part of the computerised accounting system’. Explain.
10. ‘Computerised Accounting Systems are best form of accounting system’. Do you agree?
Comment.

Answers: Self Assessment

1. Manual 2. Trial Balance
3. Generally Accepted Accounting 4. Transaction processing system (TPS)
Principles (GAAP)
5. Computerised accounting 6. Financial Information
7. Accounting software 8. Ready-to-Use

13.8 Further Readings

Books Khan and Jain, “Management Accounting”.
“Learning in Tally” Ramesh Bangia (PBP)
M.P. Pandikumar, “Accounting & Finance for Managers”, Excel Books, New Delhi.
R.L. Gupta and Radhaswamy, “Advanced Accountancy”.
S.N. Maheswari, “Management Accounting”.

Tally Solutions aims to double revenues in 2011-12. “The Economic Times” (The
Times of India). 10 April 2011.
V. K. Goyal, “Financial Accounting”, Excel Books, New Delhi.

Online link www.futureaccountant.com

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