Overview of Computerised Accounting for Class 12 NCERT Students

What is an Overview of Computerised Accounting?

Computerised Accounting is the process of recording, storing, and managing accounting transactions using specialised software and computer systems. Unlike manual accounting, where entries are made by hand, computerised accounting automates data entry, processing, and report generation. This system helps businesses maintain accurate financial records efficiently.

In Class 12 NCERT Accountancy, understanding the overview of computerised accounting is crucial as it forms the foundation for learning advanced accounting software and practices. It covers how transactions are inputted, processed, and how reports like profit and loss statements and balance sheets are generated automatically.

Key Components of a Computerised Accounting System

A Computerised Accounting System (CAS) consists of five essential components:

• Data: All financial transactions and accounting information.
• People: Users who operate and manage the system, such as accountants and auditors.
• Procedure: The methods and rules for entering and processing data.
• Hardware: Physical devices like computers, printers, and storage media.
• Software: Accounting programs that process data and generate reports.

These components work together to ensure smooth functioning of the accounting system from data entry to report generation. For example, software processes the data entered by people using hardware, following set procedures to produce accurate financial statements.

Using Computerised Accounting Software: One-time and Recurring Activities

Computerised Accounting Software involves two main types of activities:

1. One-time Activities:

• Setting up organisation details such as company name and address.
• Defining the accounting year.
• Creating master files like ledger accounts and inventory lists.

2. Recurring Activities:

• Regularly entering transactions through vouchers such as cash, bank, purchase, sales, and journal vouchers.
• Updating ledgers and accounts automatically.

The software then generates various reports including day books, ledgers, trial balance, profit and loss statement, balance sheet, and cash flow statement. These activities simplify accounting tasks and reduce errors compared to manual methods.

Security Features in Computerised Accounting Systems

Security is a critical aspect of computerised accounting to protect sensitive financial data. Important security features include:

• Password Security: Restricts access to authorised users only, based on user rights.
• Data Audit: Tracks changes made to data, showing who made the change and when, similar to an audit trail.
• Data Vault (Encryption): Scrambles data to make it unreadable to unauthorised users, protecting information even if data is compromised.

These features ensure data confidentiality, integrity, and safety, which are essential for trustworthy accounting systems.

Comparison Between Manual and Computerised Accounting Systems

Understanding the differences between manual and computerised accounting helps Class 12 students appreciate the advantages of CAS.

This table highlights why computerised accounting is preferred in modern business environments.

Worked Example: Recording a Purchase Transaction in CAS

Suppose a business purchases goods worth ₹50,000 on credit. In a computerised accounting system, the transaction is entered as a purchase voucher.

Steps:

1. Open the purchase voucher screen in the software. 2. Enter the date of transaction. 3. Select the supplier’s ledger account. 4. Enter the amount ₹50,000. 5. Save the voucher.

The software automatically updates the purchase ledger and accounts payable ledger. At the end of the accounting period, this transaction will reflect in the trial balance and financial statements without manual calculations.

This example shows how CAS simplifies accounting by automating data recording and ledger updates.