Class 11 Accountancy - Chapter Applications of Computers in Accounting NCERT Solutions | ‘An accounting report is essential
‘An accounting report is essential a report which must be able to fulfil certain basic criteria' Explain? List the various types of accounting reports.
When a data is processed properly than it becomes information and when such related information is summarized to meet a particular need, it is called a report. The content and design of the report is expected to vary depending upon the level to which it is submitted and decision to make on the basis of the report. A report must be effective and efficient to the user and should substantiate the decision making process. Every accounting report must be able to fulfill the following criterion:
(i) Relevance
(ii) Timeliness
(iii) Accuracy
(iv) Completeness
(v) Summarization
Type of Accounting reports:
The accounting reports generated by the accounting software may be either routine reports or on the specific requirements of the user. E.g. the ledger is a routine report while a report on supplies of a particular item by a given party is an on-demand report. However,from a broader perspective, the Accounting related MIS reports may be of following reports:
(i) Summary Reports: Summarizes all activities of the organisation and present in the form of summary reports like profit and loss account and balance Sheet.
(ii) Demand Reports: This reports will be prepared only when the management requests them, e.g, Bad Debts Report for a given product ,Stock Valuation Report.
(iii) Customer /Supplier Reports: According to the specifications of the management it will be prepared. e.g. Top 10 Customers reports , Interest on customer Account / Invoices, Statement of Account, Customer Reminder Letters Outstanding /Open Delivery Order ,Purchase Analysis ,Vendor Analysis Report.
(iv) Exception Reports: According to the conditions or exception the report is prepared. e.g. Inventory Report in short supplies ,Stock Status Query ,Over stocked Status ,etc.
(v) Responsibility Reports: The MIS structure specifies the premises of management responsibilities. e.g the report on Cash Position is to be submitted by the head of finance and Accounts Departments.
More Questions From Class 11 Accountancy - Chapter Applications of Computers in Accounting
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State the relationship between information and decision.
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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.
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List the distinctive advantages of a computer system over a manual system.
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State the various essential features of an accounting report.
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Draw block diagram showing the main components of a computer.
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Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
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‘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.
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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:-
What is Accounting Information System?
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Name three components of a Transaction Processing System.
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Recently Viewed Questions of Class 11 Accountancy
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If the trial balance agrees, it implies that:
(a) There is no error in the books.
(b) There may be two sided errors in the book.
(c) There may be one sided error in the books.
(d) There may be both two sided and one sided errors in the books. - Q:-
A Trial balance is prepared:
(a) After preparation financial statement.
(b) After recording transactions in subsidiary books.
(c) After posting to ledger is complete.
(d) After posting to ledger is complete and accounts have been balanced. - 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.
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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.
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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.
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