Class 11 Accountancy - Chapter Applications of Computers in Accounting NCERT Solutions | Explain, using examples, the relationshi
Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.
Accounting information system is an important component of the organisation MIS in an organisation. It receives information and provides information to the other functional MIS. The following example illustrates the relationship and data interface between the various sub - components of MIS.
(i) Accounting Information System, Manufacture System and Human Resource Information System From the figure given below we can go through the relationship between the three information systems, viz manufacturing information system accounting information system and the human resource information system. The manufacturing departments receives the list of workers from the Human Resource (HR) department.
It sends the details of production achieved by the workers on the basis of which the HR department directs the finance and accounts (F&A) department to pay the wages. The details of the wages paid and statutory dues are also sent by the F&A departments to the production department also to the HR department to monitor the performance of workers.
The HR department communicates to the other departments about the good/bad performance on the basis of which decision on various operational matters may be taken.
(ii) AIS and Marketing Information System Consider the business process in the Marketing and Sales departments involving the following activities
(a) Inquiry
(b) Contact creation
(c) Entry of orders
(d) Dispatch of goods
(e) Billing to customers
The accounting sub-system transaction cycle include the processing of sales order, credit authorisation custody of the goods, inventory position, shipping information receivables etc, It also keeps a track of the customer accounts e.g. Aging Report which should be generated by the system.
(iii) AIS and Manufacturing Information System Business process in the production department may involve the following activities
(a) Preparation of plans and schedules
(b) Issue of material requisition forms and jobs cards
(c) Issue of inventory
(d) Issue of order for procurement of raw materials
(e) Handling of vendors invoices
(f) Payments to vendors
Hence, it can be said that a computerized accounting system is a sub component of the accounting information system which transforms the financial data into meaningful information and communicates the information to the decision - makers. The reports demanded may be routine or specific ones.and the other functional information system in an organisation.
More Questions From Class 11 Accountancy - Chapter Applications of Computers in Accounting
- Q:-
State the relationship between information and decision.
- Q:-
List the distinctive advantages of a computer system over a manual system.
- Q:-
State the various essential features of an accounting report.
- Q:-
Draw block diagram showing the main components of a computer.
- Q:-
Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
- Q:-
Fill in the correct words :
1. The user oriented programmes designed and developed for performing certain specific tasks are called as ...........
2. Language syntax is checked by software called as ...........
3. The people who write programmes to implement the data processing system design are called as ...........
4. ........... is the brain of the computer.
5. ........... and ........... are two of the important requirements of an accounting report.
6. An example of responsibility report is ........... - Q:-
‘An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives’. In the light of this statement, explain the relationship between information and decisions. Also explain the role of the Transaction Processing System in facilitating the decision-making process in business organisations.
- Q:-
What is Accounting Information System?
- Q:-
Name three components of a Transaction Processing System.
- Q:-
State the different elements of a computer system.
Popular Questions of Class 11 Accountancy
- Q:-
Name any two types of commonly used negotiable instruments.
- Q:-
Why is it necessary to record the adjusting entries in the preparation of final accounts?
- Q:-
State the meaning of incomplete records?
- Q:-
What is ‘Depreciation’?
- Q:-
Briefly state how the cash book is both journal and a ledger.
- Q:-
State the meaning of a trial balance?
- Q:-
State the four basic requirements of a database applications.
- Q:-
Define accounting.
- Q:-
Why is it necessary for accountants to assume that business entity will remain a going concern?
- Q:-
State the need for the preparation of bank reconciliation statement?
Recently Viewed Questions of Class 11 Accountancy
- Q:-
Complete the following sentences with appropriate words:
(a) Information in financial reports is based on .....................
(b) Internal users are the ..................... of the business entity.
(c) A ..................... would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.
(d) The Internet has assisted in decreasing the ..................... in issuing financial reports to users.
(e) ..................... users are groups outside the business entity, who uses the information to make decisions about the business entity.
(f) Information is said to be relevent if it is ......................
(g) The process of accounting starts with ............ and ends with ............
(h) Accounting measures the business transactions in terms of ............ units.
(i) Identified and measured economic events should be recording in ............ order. - Q:-
Discuss the concept-based on the premise do not anticipate profits but provide for all losses.
- Q:-
The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods have been:
a. dispatched
b. invoiced
c. delivered
d. paid for Give reasons for your answer. - Q:-
Why is it important to adopt a consistent basis for the preparation of financial statements? Explain.
- Q:-
Which of the following is correct?
(i) Liabilities = Assets + Capital
(ii) Assets = Liabilities – Capital
(iii) Capital = Assets – Liabilities
(iv) Capital = Assets + Liabilities. - Q:-
What is the money measurement concept? Which one factor can make it difficult to compare the monetary values of one year with the monetary values of another year?
- Q:-
Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment. Of which he paid ₹ 1,00,000 for furniture, ₹ 2,00,000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid ₹ 5,000 as their salaries. Out of the stationery bought he sold some stationery for ₹ 1,50,000 for cash and some other stationery for ₹ 1,00,000 on credit basis to Mr. Ravi. Subsequently, he bought stationery items of ₹ 1,50,000 from Mr. Peace. In the first week of next month there was a fire accident and he lost ₹ 30,000 worth of stationery. A part of the machinery, which cost ₹ 40,000, was sold for ₹ 45,000.
From the above, answer the following :
1. What is the amount of capital with which Mr. Sunrise started business?
2. What are the fixed assets he bought?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. What are the expenses?
6. What is the gain he earned?
7. What is the loss he incurred?
8. Who is the debtor? What is the amount receivable from him?
9. What is the total amount of expenses and losses incurred?
10. Determine if the following are assets, liabilities, revenues, expenses or none of the these: sales, debtors, creditors, salary to manager, discount to debtors, drawings by the owner. - Q:-
Briefly explain the effects of dishonour and noting of a bill of exchange.
- Q:-
Briefly explain the purpose and benefits of retiring a bill of exchange to the debtor and the creditor.
- Q:-
Distinguish between bill of exchange and promissory note.
- All Chapters Of Class 11 Accountancy
- All Subjects Of Class 11