Computers in Accounting

COMPONENTS OF COMPUTERS :-

The functional components consists of Input Unit, Central Processing Unit (CPU) and the out Unit related as follows :

(1) Input Unit :

It is for entering the data into the computer system. Keyboard and Mouse are the most commonly used input devices.Other such devices are magnetic tapes, disc, light pen, optical scanner, smart card reader etc. Besides there are some devices which respond to voice and physical touch.

(2) Central Processing Unit (CPU) :

It is the main part of computer hardware that actually processes the data according to the instructions it receives. It has three units :

1. Arithmatic and Logic Unit (ALU) : Responsible for porforming all the arithmatic calculations such as addition, subtraction etc and logical operations involving comparison among variables.
2. Memory Unit : For storing the data.
3. Control Unit : Responsible for controlling and co-ordinating the activities of all other units of the computer system.

(3) Output Unit :

After processing the data, the information produced is required in human readable and understandable form. Output devices perform this function. The commonly used devices are monitor, printer, graphic plotter (external) and magnetic stage devices (internal). A new device which is capable of producing verbal output that sound in human speech is also developed.

Features of Computerised Accounting System

Computerised accounting system is based on the concept of database. This system offers the following features :

1. Online input and storage of accounting data.
2. Printout of purchase and sales invoices.
3. Every account and transaction is assigned a unique code.
4. Grouping of accounts is done from the beginning.
5. Instant reports for management, for example : Stock statement, Trial Balance, Income Statement, Balance Sheet, Payroll Reports, Tax Reports etc.

DATA BASE MANAGEMENT SYSTEM (DBMS)

Meaning of Data Base : A data base is a collection of related data that is stored in a system. This data is stored in such a way that it can be updated, modified or retrieved as and when required.

Meaning of DBMS : It is a computerized Record keeping system (software) that allows access to data contained in a database. The DBMS makes possible to share the data in the database among multiple users.

Advantages of DBMS – Following are some of the advantages of DBMS :

It helps in effective and efficient management of data.

1. Better data provided by DBMS help to generate better information and reports.
2. It ensures rapid access to all stored data needed at any time which is updated from time to time ensuring better decision making.
3. It is easy to understand and user friendly.
4. It helps in quick answering of queries.
5. It helps in ensuring data security and integrity.

Uses or Functions of DBMS in Accounting System

Some of the functions of DBMS in a Business are :

1. Data Storage Management : It stores a variety of data, reports, etc. related to accounting system.
2. Data Dictionary Management : The data dictionary is automatically up dated in case of any modification the data base. Hence there is no need to modify all the programs.
3. Security Management : Since many people uses the same data base, the DBMS ensures Security and privacy within the data base by the estab lishment of security rules.
4. Backup and Recovery Management : DBMS ensures the data safety and integrity by providing adequate backup and data recovery procedures.
5. Data base Communication Interfaces : It provides the facility of faster communication by the use of internet. The users can publish their reports on internet, can send e-mails and find answers to their queries by exploring the websites.

Accounting Softwares

(1) Readymade Softwares :

Readymade Software are the software that are developed not for any specific user but for the users in general. Some of the readymade softwares available are Tally, Ex, Busy, Such softwares are economical and ready to use. such softwares do not fulfill the requirement of very user.

(2) Customised Software :

Customised software means modifying the readymade softwares to suit the specific requirements of the ueser. Readymade softwares are modified according to the need of the business. Cost of installation, main tenance and training is relatively higher than that of readymade user. There packages are used by those medium or large business enterprises in which financial transactions are some what peculiar in nature.

(3) Tailor-made Software :

The softwares that are developed to meet the requirement of the user on the basis of discussion between the user and developers. Such softwares help in maintaining effective management information system. The cost of these softwares in very high and specific training for using these packages is also required.

 

CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari ) 
Email Id : [email protected]