Role of Computers in Accounting
MODULE - 2
Trial Balance and Computers
Computer and Computerised Accounting System
Notes
12
COMPUTER AND COMPUTERISED ACCOUNTING SYSTEM
With the expansion of business the number of transactions increased. The manual method of keeping and maintaining records was found to be unmanageable. With the introducton of computers in business, the manual method of accounting is being gradually replaced. And finally, the database technology has revolutionised the accounts department of the business. organisations. In this lesson, we will study about characteristics of computer, role of computers in accounting, need of computerised accounting, etc.
OBJECTIVES After studying this lesson, you will be able to: state the meaning and characteristics of computer; describe the components of Computer: explain the limitations of a Computer; explain the role of computer in accounting; differentiate between manual accounting and computerised accounting; state the need for computerised accounting; describe the basic requirements of computerised accounting. 12.1 COMPUTER AND ITS CHARACTERISTICS Computer is an electronic device that can perform a variety of operations in accordance with a set of instructions called programme. It is a fast data processing electronic machine. It can provide solutions to all complicated situations. It accepts data from the user, converts the data into information and gives the desired result. Therefore, we may define computer as a device that transforms data into information. Data can be anything like marks
226
ACCOUNTANCY
Computer and Computerised Accounting System obtained in various subjects. It can also be name, age, sex, weight, height, etc. of all the students, savings, investments, etc., of a country. Computer is defined in terms of its functions. Computer is a device that accepts data, stores data, processes data as desired, retrieves the stored data as and when required and prints the result in desired format. Characteristics of computer A
Trial Balance and Computers
Computer and Computerised Accounting System
Notes
12
COMPUTER AND COMPUTERISED ACCOUNTING SYSTEM
With the expansion of business the number of transactions increased. The manual method of keeping and maintaining records was found to be unmanageable. With the introducton of computers in business, the manual method of accounting is being gradually replaced. And finally, the database technology has revolutionised the accounts department of the business. organisations. In this lesson, we will study about characteristics of computer, role of computers in accounting, need of computerised accounting, etc.
OBJECTIVES After studying this lesson, you will be able to: state the meaning and characteristics of computer; describe the components of Computer: explain the limitations of a Computer; explain the role of computer in accounting; differentiate between manual accounting and computerised accounting; state the need for computerised accounting; describe the basic requirements of computerised accounting. 12.1 COMPUTER AND ITS CHARACTERISTICS Computer is an electronic device that can perform a variety of operations in accordance with a set of instructions called programme. It is a fast data processing electronic machine. It can provide solutions to all complicated situations. It accepts data from the user, converts the data into information and gives the desired result. Therefore, we may define computer as a device that transforms data into information. Data can be anything like marks
226
ACCOUNTANCY
Computer and Computerised Accounting System obtained in various subjects. It can also be name, age, sex, weight, height, etc. of all the students, savings, investments, etc., of a country. Computer is defined in terms of its functions. Computer is a device that accepts data, stores data, processes data as desired, retrieves the stored data as and when required and prints the result in desired format. Characteristics of computer A