Class 11 Accountancy - Chapter Computerised Accounting System NCERT Solutions | Describe the various types of accounting
Describe the various types of accounting software along with their advantages and limitations.
1) Ready to Use Software: A variety of readymade softwares is available in the market. These softwares are for users at large and are not developed according to the requirements of any specific user. Most popular readymade softwares available in the market is Tally, Ex. Busy etc.
| Advantages | Disadvantages |
|---|---|
|
1. These softwares are developed by a group of highly experienced group of professionals. |
1. These softwares use laser printers which are costly than the use of Dot Matrix Printers. |
| 2. Since these softwares are used by a large number of users, accounting personnel well versed with these software are easily available. | 2. The lwvwl of Secrecy in these software is very low thus the siftware is highly prone to frauds. |
| 3. They are easy to learn and their training is sometimes offered free by the vendor. | 3. These software offer very little scope of linking to other information systems. |
| 4. Because of their use by a large numbers of users, they have better after sales maintenance service. | |
| 5. Because they are available off-the-shelf , time required in developing a tailor made software is saved. | |
| 6. The cost of installation is low. |
2) Customised Software: The term 'Customised Software' means making changes in the ready to use Software so as to suit thespecific requirements of the user. Any readymade software can be changed according to the needs and specifications of the user. However, the cost of installation of Customised softwares are high because the cost of change is to be paid by the user.
| Advantages | Disadvantages |
|---|---|
| 1. These softwares are designed to suit the specific requirements of the users. | 1. Cost of installation and maintenance is higher in comparison to ready to use Software. |
| 2. Level of Secrecy for the data is higher. | 2. Training requirement for using these packages is higher in comparison to ready to use Software. |
| 3. Linkage to other information systems is available on the basis of need of the enterprise. |
3) Tailor-made Software: The term 'tailor-made software' means developing a software according to the needs and specifications of the user. These softwares are not available off-the-shelf.
| Advantages | Disadvantages |
|---|---|
| 1. It being developed sccording to the specifications of the user, takes care of the specific needs of the enterprise. | 1. If the accounts are grouped in an innocent manner, the results will be misleading. |
| 2. The level of secrecy of data and authenticity checks are robust in such softwares. | 2. The cost of development and maintenance of such software is much higher in comparison to readymade or customised software. |
| 3. It is difficult to lern and require specialised training. | |
| 4. Training costs are high since they involve sophisticated applications. | |
| 5. If someone leaves the job, it becomes very difficult for the new employee to be fully conversant with such software. |
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What is meant by Grouping and Marshalling of assets and liabilities. Explain the ways in which a balance sheet may be marshalled.
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Passbook is a copy of:
(a) Copy of customer Account (b) Bank column of cash book
(c) Cash column of cash book (d) Copy of receipts and payments - Q:-
A bank reconciliation statement is mainly prepared for:
(a) Reconcile the cash balance of the cash book.
(b) Reconcile the difference between the bank balance shown by the cash book and bank passbook
(c) Both (a) and (b)
(d) None of these - Q:-
Why is it important to adopt a consistent basis for the preparation of financial statements? Explain.
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Fill in the blanks :
(i) Passbook is a copy of.............as it appears in the ledger of the bank.
(ii) When money is with drawn from the bank, the bank ............. the account of the customer.
(iii) Normally, the cash book shows a debit balance, passbook shows .............balance.
(iv) Favourable balance as per the cash book means .............balance in the bank column of the cash book.
(v) If the cash book balance is taken as starting point the items which make the cash book balance smaller than the passbook must be .............for the purpose of reconciliation.
(vi) If the passbook shows a favourable balance and if it is taken as the starting point for the purpose of bank reconciliation statement then cheques issued but not presented for payment should be .............to find out cash balance.
(vii) When the cheques are not presented for payment, favourable balance as per the cash book is .............than that of the passbook.
(viii) When a banker collects the bills and credits the account passbook overdraft shows .............balance.
(ix) If the overdraft as per the passbook is taken as the starting point, the cheques issued but not presented are to be .............in the bank reconciliation statement.
(x) When the passbook balance is taken as the starting point items which makes the passbook balance .............than the balance in the cash book must be deducted for the purpose of reconciliation. - Q:-
Credit balance of bank account in cash book shows :
(i) Overdraft
(ii) Cash deposited in our bank
(iii) Cash withdrawn from bank
(iv) None of these - Q:-
What is ‘Depreciation’?
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Double entry accounting requires that :
(i) All transactions that create debits to asset accounts must create credits to liability or capital accounts;
(ii) A transaction that requires a debit to a liability account require a credit to an asset account;
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If the rent of one month is still to be paid the adjustment entry will be :
(a) Debit outstanding rent account and Credit rent account.
(b) Debit profit and loss account and Credit rent account.
(c) Debit rent account and Credit profit and loss account.
(d) Debit rent account and Credit outstanding rent account. - Q:-
The journal entry to record the sale of services on credit should include:
(a) Debit to debtors and credit to capital.
(b) Debit to cash and Credit to debtors.
(c) Debit to fees income and Credit to debtors.
(d) Debit to debtors and Credit to fees income.
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