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. |
More Questions From Class 11 Accountancy - Chapter Computerised Accounting System
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State the four basic requirements of a database applications.
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‘Computerised Accounting Systems are best form of accounting system’. Do you agree? Comment.
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Name the various categories of accounting package.
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Define a computerised accounting system. Distinguish between a manual and computerised accounting system.
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Database is implemented using ........
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A sequence of actions taken to transform the data into decision useful information is called.......
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‘Accounting software is an integral part of the computerised accounting system’ Explain. Briefly list the generic considerations before sourcing an accounting software.
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The framework of storage and processing of data is called as ........
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Give examples of two types of operating systems.
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Give two examples each of the organisations where ‘ready-to-use’, ‘customised’, and ‘tailored’ accounting packages respectively suitable to perform the accounting activity.
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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:-
Credit purchase, during the year is ascertained by preparing :
(a) Total creditors account (b) Total debtors account
(c) Cash account (d) Opening statement of affairs - Q:-
Select Right Answer:
Voucher is prepared for:
(i) Cash received and paid
(ii) Cash/Credit sales
(iii) Cash/Credit purchase
(iv) All of the above - Q:-
Fill in the blanks:
1. Issued a cheque for ₹8,000 to pay rent. The account to be debited is ............
2. Collected ₹35,000 from debtors. The account to be credited is ............
3. Purchased office stationary for ₹18,000. The account to be credited is ...........
4. Purchased new machine for ₹1,70,000 and issued cheque for the same.
The account to be debited is ............
5. Issued cheque for ₹70,000 to pay off on of the creditors. The account to be debited is ............
6. Returned damaged office stationary and received ₹50,000. The account to be credited is ............
7. Provided services for ₹65,000 on credit. The account to be debited is ........... - Q:-
Use of common unit of measurement and common format of reporting promotes;
a. Comparability
b. Understandability
c. Relevance
d. Reliability - Q:-
Depreciation written off on furniture 1,500 was not posted to depreciation account.
This is an error of ..................................
The wrong effect has been:The correct effect should have been:
The rectification entry will be.
- 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:-
Why is it necessary for accountants to assume that business entity will remain a going concern?
- Q:-
A concept that a business enterprise will not be sold or liquidated in the near future is known as :
(a) Going concern
(b) Economic entity
(c) Monetary unit
(d) None of the above - Q:-
The primary qualities that make accounting information useful for decision-making are :
(a) Relevance and freedom from bias
(b) Reliability and comparability
(c) Comparability and consistency
(d) None of the above
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