DK Goel Solutions Chapter 26 Computerised Accounting System
Read below DK Goel Solutions Class 11 Chapter 26 Computerised Accounting System. These answers have been developed based on the latest Class 11 DK Goel Accountancy book used by commerce stream students issued for current year and the questions given in each chapter.
This chapter presents keen knowledge about the meaning and working of Computerised Accounting System. It elaborates the difference between a computerized accounting system with manual accounting mechanism.
It also explains how globally all accounting is being done on various accounting tools. The chapter contains lot of questions which can be very helpful for Class 11 commerce students of Accountancy and will also help build a strong concepts which will be really helpful in your career.
DK Goel Solutions Class 11 Chapter 26 solutions are free and will help you to prepare for Class 11 Accountancy. Just scroll down and read through the answers provided below
Computerised Accounting System DK Goel Class 11 Accountancy Solutions
Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 26
Short Answer Questions for DK Goel Solutions Class 11 Chapter 26 :-
Question 1: Define a computerised accounting system. Distinguish between a manual and computerised accounting system.
Solution 1: The accounting information system that helps manage financial transactions and activities in compliance with generally accepted accounting principles is a computerized accounting system (GAAP).
The variations between the manual and the computerized accounting system are:—
Identification of financial transactions in this method is performed manually by following the accounting principle. Manually, the documentation of transactions in the initial entry books and similar measurements such as the inclusion of subtraction and totaling are performed. Classification posting to ledger accounts is handled manually in this system, consuming too much time.
Identification of financial transactions in this method is performed manually by following the accounting principle. Transaction logging, i.e. data collection in the database, is conducted manually and all other measurements are performed by computers. The accumulated data is interpreted automatically by the program in this system to provide us with ledger accounts.
Question 2: Explain briefly any four advantages of computerised accounting system over the manual system.
The benefits over the manual method of the computerized accounting system:-
- High Pace:- A computer’s accounting speed is much quicker than a human being’s.
- Reliability:- The degree of reliability of a computer’s generated knowledge is enormous. In terms of the volume of the work, the reliability remains the same, although in the case of voluminous work, the reliability of a human job may be questionable.
- Accuracy:- If a specific program is supplied, the accuracy of a machine cannot be doubted. All the findings based on such a program will be 100% correct, while the outcome generated by a human being could differ due to carelessness, etc.
- Updating Documents:- All relevant records on a computer are immediately changed after any information is punched in, while all records may have to be altered one by one in the case of manual accounts.
Question 3: Computerised accounting system is the best form of accounting system. Do you agree? Comment.
“The best form of accounting system is the computerized accounting system,” as the benefits below are there:-
- High speed
- Updating on information
- Lower Cost
- Timely Reporting
- Flexible Reporting
- Storage and Retrieval
Question 4: Mention three limitations of the CAS (Computerised Accounting System).
Below are the limitations of CAS:-
- Staff Opposition:- Introduction of computer lead to a lot of retrenchment as well as complication of activities which result in resistance of the staff.
- High Cost of training:- The computerised accounting packages generally require specialised staff personal, which leads to heavy amount of cost of training.
- Adverse effects on health:- The excessive use to computers may lead to various health problems like eye strains, back aches, muscular pain etc.
Question 5: ‘Accounting software is an integral part of the computerised accounting system’ Explain.
‘Accounting software is an integral part of the computerised accounting system’. Every business need computerised accounting system. But before acquiring any software it is very important to analyse the level of expertise of the people who would use it. Because eventually it is people and not the computer who are responsible for accounting.
The need for the accounting software arises in two situation’s namely:
(i) When the computerised system is replacing the manual system
(ii) When the computerised system already exists in the organisation and it is to be altered according to the recent changes.
Question 6: Briefly list the generic considerations before sourcing accounting software.
The list of generic considerations before sourcing accounting software:-
1.) The cost of installation and maintenance:- A simple cost benefit analysis is done before installing any software.
2.) Flexibility:- It is one of the important considerations before sourcing an accounting software.
3.) Adaptability and Training needs:- The accounting software should be easily understandable and adaptable.
4.) Size of the organisation:- The size of the organisation and the volume of its accounting transactions determine the requirements of the type of accounting software.
5.) The level of MIS reporting:- The level of use and utility of MIS reporting in on organisation determine the acquisition of software to a lot of extent.
Question 7: Give the names of different accounting packages.
Below are the different accounting packages:-
Question 8: Give names of two multi-user operating systems.
Below are the multi-user operating systems:-
Question 9: Explain the following along with their advantages:
(a) Ready to use accounting software.
(b) Customised accounting software.
(c) Tailored accounting software.
(a) Ready to use accounting software:- A range of ready-made software’s is available in the industry. These software’s are for consumers at large and are not built accounting to the needs of any particular user.
Below are the advantages of Ready to use software are:-
1.) These applications was developed by a community of highly qualified group of experts.
2.) These software’s are used by a large number of users, accounting personnel well versed with these software’s are easily available.
(b) Customised accounting software:- The term ‘Customised Software’ means making changes in the ready to use software so as to suit the specific requirement of the user. Any readymade applications can be modified according to the needs and specifications of the customer.
Below are the advantages of Customised accounting software:-
1.) These software are designed to suit the specific requirement of the users.
2.) Level of secrecy for the data is higher.
(c) Tailor-made Software:- The term ‘tailor-made software means developing a software according to the needs and specifications of the users. These software’s are not available off-the-shelf.
Here are the benefits of tailor-made software:-
1.) It being developed according to the specifications of the user, takes care of the specific needs of the enterprise.
2.) The level of secrecy of data and authenticity checks are robust in such software’s.
Question 10: Briefly explain three advantages and three disadvantages of computerised accounting.
The advantages of Computerised Accounting are:-
The benefits of computerized accounting are below:-
- High Pace:- A computer’s accounting speed is much quicker than a human being’s.
- Reliability:- The extent of reliability of a computer’s generated information is immense. In spite of the volume of the work, the reliability remains the same, while in the case of voluminous work, the reliability of a human job can be doubtful.
- Accuracy:- Once a specific program is supplied, the accuracy of a computer cannot be doubted. All the findings based on such a program would be 100% accurate, while the outcome produced by a human being may differ due to carelessness, etc.
Computerized Accounting’s limitations are:—
- Staff Opposition:- Computer introduction leads to a great deal of retrenchment and complication of activities that lead to staff resistance.
- High Training Costs:- Computerized accounting packages typically involve skilled resources, contributing to high training costs.
- Adverse health effects:- Prolonged use of computers can lead to different health conditions, such as eye strains, back aches, muscle pain, etc.
Question 11: Write any three limitation of Ready-made software.
The drawbacks of ready-made apps are below:—
1.) Such software uses laser printers that are more expensive than Dot Matrix Printers.
2.) The degree of security in this program is very poor, so the software is extremely vulnerable to theft.
3.) Such software offers very little connection to other information systems.
Question 12: Define Software. Explain different type of software used in a computer system.
A series of instructions written in a correct language would have to be fed into the machine to solve a problem with the aid of the computer. A collection of such instructions is referred to as a “program” and the program set is referred to as software. There are six type of computers:-
1.) Operating System
2.) Utility Software
3.) Application Software
4.) System Software
5.) Language Processors
6.) Connectivity Software
A computerized Accounting System is the accounting information system comprising software to record all the financial transactions of a company with the sole objective to design monthly financial reports, financial statements, etc.
In manual accounting, the entire process of recording the transactions is performed manually. Under the accounting principles, the transaction entries are documented in the accounting books. This is the most time-consuming method as the whole operation is done manually. On the other hand, in computerized accounting, the processes are performed with the help of technology. All the functions and measurements are performed by computers. Therefore, this method is pretty fast and convenient in comparison to manual accounting.
As explained in DK Goel Solutions class 11 Chapter 26, here are the merits of a computerized accounting system –
● With a Computerized Accounting System, companies can perform accounting processes within a blink. It is much faster than a manual accounting system.
● It helps to deal with a large volume of transactions with excellent efficiency and speed.
● Being a technology-based system, it nullifies the chances of errors in the calculations and other accounting processes.
● A computerized Accounting System enables the users to access the stored data anytime and from any location.
Here are the demerits of Computerized Accounting System –
● A computerized Accounting System is a technology-based system. Therefore, squeezing out the actual benefits of the system requires proper training and expertise in handling the software efficiently.
● System failure can lead to serious problems like loss of data and can be time-consuming and expensive.
● Due to the lack of a decision -making capabilities, the computer often fails to present the most beneficial output as they only function according to the predefined programs.
The two multi-user operating systems are – UNIX and LINUX.
Here are the limitations of Ready-made software –
● This software brings negligible security, and they remain vulnerable to being pirated.
● Most of this software employs laser printers with elevating the expenses in comparison to the Dot Matrix Printers.