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    Application of Computer in Accounting

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    Anush Kuchipudi
    This document discusses the application of computers in accounting. It describes the characteristics of computers like speed, storage, accuracy, and versatility. It outlines the components of a computer including the input, central processing, control, memory, arithmetic logic, and output units. It discusses the role of computers in accounting tasks like preparing documents, recording transactions, and generating financial statements. It also compares manual versus computerized accounting in terms of speed, accuracy, cost, reporting capabilities, and security.

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    Application of Computer in Accounting

    Uploaded by

    Anush Kuchipudi
    214 views20 pages
    This document discusses the application of computers in accounting. It describes the characteristics of computers like speed, storage, accuracy, and versatility. It outlines the components of a computer including the input, central processing, control, memory, arithmetic logic, and output units. It discusses the role of computers in accounting tasks like preparing documents, recording transactions, and generating financial statements. It also compares manual versus computerized accounting in terms of speed, accuracy, cost, reporting capabilities, and security.

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    This document discusses the application of computers in accounting. It describes the characteristics of computers like speed, storage, accuracy, and versatility. It outlines the components of a computer including the input, central processing, control, memory, arithmetic logic, and output units. It discusses the role of computers in accounting tasks like preparing documents, recording transactions, and generating financial statements. It also compares manual versus computerized accounting in terms of speed, accuracy, cost, reporting capabilities, and security.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    214 views20 pages

    Application of Computer in Accounting

    Uploaded by

    Anush Kuchipudi
    This document discusses the application of computers in accounting. It describes the characteristics of computers like speed, storage, accuracy, and versatility. It outlines the components of a computer including the input, central processing, control, memory, arithmetic logic, and output units. It discusses the role of computers in accounting tasks like preparing documents, recording transactions, and generating financial statements. It also compares manual versus computerized accounting in terms of speed, accuracy, cost, reporting capabilities, and security.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    APPLICATION OF

    COMPUTER IN
    ACCOUNTING
    prepared by

    ANUSH KUCHIPUDI
    Content
    1. Characteristics of computer

    2. Characteristics of computer
    3. Components of Computer
    4. Limitation of A Computer And Computerized Accounting
    5. Role of computers in accounting
    6. Computerized Accounting
    7. Need And Requirements Of Computerized Accounting
    8. Difference b/w Manual accounting and Computerized accounting
    COMPUTER
    Computer is an electronic device that can perform a
    variety of operations in accordance with a set of
    instructions called program.
    It accepts data from the user, converts the data into
    information and gives the desired result.
    Characteristics of computer
    Speed
    It can access and process data millions
    times faster than humans can.

    Storage
    Computers have very large storage
    capacity
    Accuracy
    The accuracy of computer is very
    high and every calculation is
    performed with the same accuracy

    Diligence
    A computer is free from tiredness
    and lack of concentration.
    Versatility
    Computer can perform wide range
    of jobs with speed, accuracy, and
    diligence.

    Communication
    Computers are being used as
    powerful communication tools.
    Components of Computer
    Components of Computer
    Input Unit
    Central Processing Unit
    (CPU)
    Control Unit
    Memory Unit
    Arithmetic Logic Unit
    (ALU)
    Output unit
    LIMITATIONS OF A COMPUTER AND
    COMPUTERISED
    ACCOUNTING
    Cost of Installation
    Computer hardware and
    software needs to be updated.
    Results heavy cost to
    purchase

    Cost of Training
    Training and cost is incurred
    to train the staff personnel.
    Self Decision Making
    The computer cannot make a decision like
    human beings

    Maintenance
    Computer requires to be maintained properly
    to help maintain its efficiency
    Dangers For Health
    Extensive use of computer
    may lead to many health
    problems such as
    muscular pain, eyestrain, and
    backache, etc.
    Role of computers in accounting
    Preparation of accounting documents
    Cash Memo, Bills and invoices etc. and preparing
    accounting vouchers.

    Recording of transactions
    Every day business transactions are recorded with the help
    of computer software.
    Every account and transaction is assigned a unique code.

    Preparation of Trial Balance and Financial Statements


    After recording of transaction, the data is transferred into
    Ledger account automatically by the computer.
    Trial Balance is prepared by the computer to check accuracy
    of the records.
    Computerized Accounting
    Transaction processing system (TPS) is the first stage of computerized
    accounting system. The purpose is to record, process, validate and store
    transactions for retrieval and usage.
    Human resources it is called manual system .
    Computer resources it is called computerized system.
    Both human and computer resources called computer-based system .
    NEED AND REQUIREMENTS
    Numerous Transactions
    Large number of transactions with
    speed and accuracy.

    Instant Reporting
    Offering quick and quality reporting
    because of its speed and accuracy.
    Reduction in paper work
    A manual accounting system
    requires large space.
    By introducing computerized
    accounting system there will
    reduction of paper work.
    Flexible reporting
    The reporting is flexible in computerized
    accounting system as compared to manual
    accounting system.

    Accounting Queries
    There are accounting queries which are
    based on some external parameters.
    On-line facility
    Computerized accounting system
    offers online facility to store and
    process transaction.

    Scalability
    Computerized accounting system are
    fully equipped with handling the
    growing transactions of a fast growing
    business enterprise.
    Accuracy
    The information content of
    reports generated by the
    computerized accounting
    system is accurate and
    therefore quite reliable for
    decision making.

    Security
    Under manual accounting
    system it is very difficult to
    secure such information.
    In computerized accounting
    system only the authorized
    users are permitted to have
    access
    Difference b/w Manual accounting and
    Computerized accounting
    Speed
    Accuracy
    Financial Statements
    Cost
    Reports

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