NCERT Notes for Class 11 Accountancy Chapter 13 Computerised Accounting System

Class 11 Accountancy Chapter 13 Computerised Accounting System

NCERT Notes for Class 11 Accountancy Chapter 13 Computerised Accounting System, (Accountancy) exam are Students are taught thru NCERT books in some of state board and CBSE Schools.  As the chapter involves an end, there is an exercise provided to assist students prepare for evaluation.  Students need to clear up those exercises very well because the questions with inside the very last asked from those. 

Sometimes, students get stuck with inside the exercises and are not able to clear up all of the questions.  To assist students, solve all of the questions and maintain their studies without a doubt, we have provided step by step NCERT Notes for the students for all classes.  These answers will similarly help students in scoring better marks with the assist of properly illustrated Notes as a way to similarly assist the students and answering the questions right.

NCERT Notes for Class 11 Accountancy Chapter 13 Computerised Accounting System

Class 11 Accountancy Chapter 13 Computerised Accounting System


Computerised Accounting System

It is an accounting system that process the financial transactions and events to produce report as per user requirements

Need for computers in accounting

  • The advent of globalisation has resulted in the size of business operation.
  • Every medium and large sized organisation requires well established information system in order to generate information required for decision making and achieving the organisational objectives.
  • Modern computerised accounting system is based on the concept of database.
  • Data base is a collection of interrelated data shared and used for multiple purposes.
  • A database is implemented using a database management system.
  • DBMS is a set of computer programme or software that manages and organise data effectively and access to the stored data.
  • It involves creation of database, updating the data, deleting, editing the data preparing reports etc.

Every computerised accounting system has two basic requirements.

1- Accounting framework

It consists of a set of principles coding and grouping structure of accounting.

2- Operating procedure

It is well defined operating procedure blended suitably with the operating environment of the organisation. That is maintenance of records and generation of reports.

Requirement of data oriented application

1- Front end interface

It is an interactive link or a dialogue between the user and database oriented software through which the user communicate to the back end database.

2- Back end database

It is the data storage system that is hidden from the user and responds to the requirement of the user.

3- Data Processing

It is a sequence of actions that are taken to transform data in to information.

4- Reporting system

It is an integrated set of objects that constitute the report.

Difference between manual accounting and computerised accounting

Manual Accounting

Computerised Accounting

1. whole accounting work are done by manually

Most of works are done with the help of computers

2.Alteration and additions are not easy

Alteration and additions are easy

3. time consuming


4. periodic availability of results are very difficult

Periodic results are ascertained at any point of time

5. coding is not necessary

Most of the accounting software are using codes

Advantages of computerised accounting system

1. Speed

  • Computers make calculations and data process at very fast rate.
  • A computer can perform millions of calculations in seconds.
  • Accounting data is processed faster by using computerised accounting system than it is achieved through manual accounting.

2. Accuracy

The possibility of error is reduced in computerised accounting system because the primary accounting data is entered once for all the subsequent usage.

3. Reliability

The computer system is well adapted to performing repetitive operations. They are free from tiredness, boredom or fatigue. As a result computers are highly reliable compared to human beings.

4. Up to date information

The accounting records in a computerised accounting system are updated automatically as and when accounting data entered and stored.

5. Real time user interface

Most of the accounting systems are interlinked through a network of computer. This facilitates the availability of information to various users at the same time.

6. Automated document procedure

Accounting reports that are generated automatically. Statements of accounts are obtained just by a click of a mouse.

7. Scalability

In a computerised accounting system the requirement of additional manpower is confined to data entry operators for storing additional vouchers. The cost of processing additional transactions is almost negligible.

8. Legibility

The data displayed on computer monitor is legible. This is because the characters are typewritten using standard fonts.

9. Efficiency

The computer based accounting system ensures better use of resources and time. This brings about efficiency in generating decisions useful information and reports.

10. Quality reports

The accounting reports are highly objective and can be relied upon.

11. MIS reporting

The computerised accounting system facilitates the real time production of management information report, which will help management to monitor and control the business effectively.

12. Storage and retrieval

The computerised accounting system allows the user to store data in a manner that does not require a large amount of physical space. The system permits fast and accurate retrieval of data and information.

13- Motivation and employee’s interest

The computer system requires a specialised training of staff, which makes them feel more valued. This motivates them to develop interest in the job.

Limitations of computerised accounting system

  1. Cost of training
  2. Staff opposition
  3. Disruption
  4. System failure
  5. Inability to check unanticipated error
  6. Breaches of security
  7. Ill effect on health.

Accounting software/ package.

Accounting software is an integral part of computerised accounting system. It is a set of programme which is used to do accounting work with hardware. The need for accounting software arises in two situations.

1- When the computerised accounting system is implemented to replace the manual system

2- When the current computerised system needs to be replaced with a new one.

The accounting packages are classified in to following categories.

1.Ready to use

It is standardised accounting software available in the market. It is suitable for small business or limited number of users. It is very easier to learn and economical.

2. Customised

  • Customised accounting software means the software which meets the special requirement of the user.
  • It is suitable for medium and large business with limited number of users.
  • The cost of installation and maintenance is relatively high.
  • The customisation includes modification and addition to the software content.

3. Tailored

  • This accounting software is generally used in large business organisation with multi users and geographically scattered locations.
  • This software required special training to users.
  • It designed to meet the specific requirement of the users.

Factors considering before sourcing accounting software

An accounting system should offer some flexibility between the users and the software. The user should be able to run the software on variety of platforms and machines.

  1. Flexibility
  2. Cost of installation and maintenance
  3. Size of organisation
  4. Ease of adaptation and training needs
  5. Utilities
  6. Expected level of secrecy
  7. Exporting/ importing data facility
  8. Vendors reputation and capability.


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