Overview of Computerised Accounting for Class 12 NCERT Students

What is Computerised Accounting? A Clear Overview

Computerised accounting refers to the process of recording and managing accounting transactions using computer systems. Unlike manual accounting, where entries are made by hand, computerised accounting utilises specialised software to input data, process it, and generate accounting reports automatically.

In Class 12 NCERT Accountancy, the overview of computerised accounting highlights that it involves:

• Processing accounting transactions through computers
• Producing accurate records and financial reports
• Automating routine accounting tasks

This system improves efficiency, reduces errors, and saves time compared to traditional manual methods.

Key Components of a Computerised Accounting System

A Computerised Accounting System (CAS) consists of five essential components that work together to process accounting data:

1. Data: Raw facts from business transactions, such as dates, amounts, and account names. 2. People: Users who operate and manage the system, like accountants and data entry operators. 3. Procedures: The methods and rules followed to record and process transactions. 4. Hardware: Physical devices like computers, servers, and input/output devices. 5. Software: Accounting programs that process data and generate reports.

These components ensure smooth data entry, processing, and output generation. For example, data entered by people is processed by software on hardware following set procedures.

From Data to Information: Understanding the Transformation

In accounting, data refers to unprocessed facts, while information is data that has been processed to be meaningful.

For example:

• Data: Number of days worked = 10 days, Rate per day = ₹500
• Information: Amount to pay = 10 × 500 = ₹5000

This transformation is crucial in computerised accounting systems, where raw data entered into the system is processed automatically to produce useful financial information like journals, ledgers, trial balances, and financial statements.

Worked Example:

If an employee works 15 days at a rate of ₹400 per day, the pay is calculated as:

$$\text{Amount to pay} = 15 \times 400 = ₹6000$$

This shows how data is converted into actionable information for decision-making.

Advantages of Using Computerised Accounting Systems

Computerised accounting offers several benefits over manual accounting systems:

• Speed: Transactions are processed faster.
• Accuracy: Reduces human errors in calculations and data entry.
• Automation: Automates repetitive tasks like report generation.
• Reliability: Consistent and reliable financial information.
• Integration: Combines various accounting functions in one system.
• Scalability: Easily handles increased transaction volumes.

These advantages make computerised accounting essential for modern businesses and are emphasized in the Class 12 NCERT syllabus.

The Accounting Cycle in a Computerised System

The accounting cycle in a computerised system follows these steps:

1. Data Entry: Input raw transaction data into the software. 2. Processing: Software processes data according to accounting rules. 3. Recording: Transactions are recorded in journals and ledgers automatically. 4. Trial Balance Preparation: The system prepares trial balances to check accuracy. 5. Financial Statements: Final reports like Profit & Loss Account and Balance Sheet are generated.

This automated cycle reduces manual workload and improves accuracy. The Class 12 NCERT chapter explains how computerised systems streamline these steps, making accounting more efficient.

Common Software Used in Computerised Accounting

Several software packages are popular for computerised accounting in India, including:

• Tally ERP 9: Widely used for bookkeeping and financial management.
• QuickBooks: Popular for small and medium businesses.
• Zoho Books: Cloud-based accounting software.

These software help users:

• Enter and store transaction data
• Generate reports like journals, ledgers, and financial statements
• Maintain accuracy and transparency

Class 12 students should understand that such software integrate the components of CAS and automate the accounting cycle.