Question
Briefly explain three advantages and three disadvantages of computerised accounting.
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Answer
Advantages: Advantages of Computerised Accounting A Computerised Accounting System has many advantages, as discussed below:
- Large Volume of Transactions: In the present-day business environment, the transactions of a business are normally large in volume. The computerised accounting system can store and process such voluminous transactions with speed and accuracy.
- Scalability: A computerised accounting system is scalable to handle the growing transactions.
- Security: The accounting data under the computerised environment is safer than the accounting data under the manual system. The data can be kept secure by using a password, i.e., allowing only authorised users to access the data.
- Timely Reporting: Availability of reports on time enables the management to take quick decisions, which is an important element for the success of an enterprise. A computerised accounting system makes these reports available as and when required.
- Controls: If adequate controls are not built and, where built, are not followed, it can lead to loss of data. It is important to take back-ups at regular intervals to avoid such a situation.
- Data Corruption: The data can get corrupted through viruses that may come in through the internet or the use of external input devices without scanning them for viruses.
- Trained Computer Operators: Untrained computer operators can lead to loss of data.
- Limitations of Software: The software is developed on the basis of the experiences of the team of developers. As such, it may not be able to deal with a specific problem that may arise.
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The following balances have been extracted from the books of M/s Green House for the year ended March 31, 2017, prepare trading and profit and loss account and balance sheet as on this date.
Adjustments :
Adjustments :
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- Interest on capital @ 4%.
- Outstanding wages ₹ 50.
- Closing stock ₹ 50,000.
From the following information relating to the business of Mr. X who keeps books by single entry ascertain the profit or loss for the year ended $31^{st}$ March,$ 2017:$
Mr. X withdrew ₹ $4,100$ during the year to meet his household expenses. He introduced ₹ $600$ as fresh capital. Machinery and furniture to be depreciated by $10\%$ and $5\%$ per annum respectively.
→Mr. X withdrew ₹ $4,100$ during the year to meet his household expenses. He introduced ₹ $600$ as fresh capital. Machinery and furniture to be depreciated by $10\%$ and $5\%$ per annum respectively.
“A Computer system is capable of performing many things." Explain some of the capabilities of a Computer system. Capabilities of a Computer system.
Following balances appear in the books of Rama Bros:
On 1st April, 2016, they decided to sell a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April, 2012. Prepare the Provision for Depreciation Account and Machinery Account on 31st March, 2017, assuming the firm has been charging Depreciation at 10% p.a. on Straight Line Method.
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₹
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1st April, 2016
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Machinery A/c
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80,000
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Provision for Depreciation A/c
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36,000
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What is meant by Accounting Information System? List four features of a good Accounting Information System.
There was an error in the Trial Balance of Ram Gopal on 31st March, 2018 and the difference in books was carried to the Suspense Account. On going through the books, you find that:
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The following adjustments be taken care of:
The following adjustments be taken care of:
- Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%.
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(iamge)
Adjustments:
(iamge)
Adjustments:
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