NCERT Solutions for Class 11 Accountancy Chapter 13 Computerised Accounting System

Class 11 Accountancy NCERT Solutions Chapter 13 Computerised Accounting System

We present you with NCERT Solutions of Class 11, Accountancy, Chapter 13. Vedantu provides you with expert teachers to answer all your queries about the topic thoroughly. Every subject has its own credibility and our expert teachers are the best in class to reach out to every single student, making sure that every question is resolved. This makes studies interesting casting eagerness out of every candidate aiming for excellence. Accountancy Class 11 Chapter 13 solutions can be downloaded by clicking on the pdf link available on this page. Vedantu makes it possible to get various subjects like  Mathematics, Science, English, Hindi solutions all in one place. Now, heading to our topic for discussion.

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NCERT Solutions for Class 11 Accountancy Chapter 13 Computerised Accounting System part-1

Access NCERT Solutions for Class 11 Accountancy Chapter 13 – Computerized Accounting System

1. State the four basic requirements of a database application.

Ans: The following are the four essential needs for database applications:

a. Front-end interface: The front-end interface serves as a link between the user and the database, allowing the user to communicate with the back-end interface.

b. Back-end database: A back-end database is a storage system that may store data entered by a user while keeping it hidden from him or her.

c. Data Processing: Data processing refers to a set of actions that are carried out to convert data entered by users into valuable information.

d. Reporting system: A reporting system is a system that collects and organizes all pertinent data.


2. Name the various categories of the accounting package.

Ans: There are three types of accounting software, as listed below:

a. Ready-to-use Software or Readymade Software: This is a type of general software that contains a limited number of fundamental functionality.

b. Customized Software: Software can be tailored to a certain industry or market area.

c. Tailor-made Software or Tailored Software: Tailor-made software is created to meet the specific needs and specifications of an organization. The components are per the company's specifications.


3. Give examples of two types of operating systems.

Ans: The following are two examples of operating systems:

a. Unix: This is a multitasking operating system that permits a large number of users to access information at the same time. It provides programmers with additional flexibility, making it more popular among them.

b. Linux: Linux is an open-source operating system that is very customizable. It facilitates the transmission of requests from software to computer hardware.


4. List the various advantages of computerized accounting systems.

Ans: The following are some of the benefits that the computer accounting system provides:

a. Speed: The computer accounting system drastically reduces the amount of time it takes to complete any operation.

b. Reliability: Accounting software for computers decreases the risk of human error, making it a more trustworthy platform.

c. Real-Time User Interface: A computer system with a real-time user interface allows numerous users to use it at the same time.

d. Scalability: The computer can be improved or modified depending on the requirement and usage.

e. Accuracy: The results generated by the computerized accounting system are precise.

f. Up-to-date information: The computerized accounting system offers users current information that they can utilize to make decisions.


5. Give two examples of each of the organizations where ‘ready-to-use, ‘customized’, and ‘tailored’ accounting packages respectively suitable to perform the accounting activity.

Ans : The two examples of each of the organizations where ‘ready-to-use, ‘customized’, and ‘tailored’ accounting packages respectively suitable to perform the accounting activity are:

(a) Ready-to-use Software: This form of software is commonly found in small businesses, such as medical offices and grocery stores.

(b) Customized Software: Medium and large businesses, such as hospitals and shopping malls, use this sort of software.

(c) Tailored Software: This sort of software is employed in firms that are geographically dispersed, such as communication industries and multinational corporations.


6. Distinguish between ‘ready-to-use and ‘tailored’ accounting packages.

Ans: The differences between the ‘ready-to-use and ‘tailored’ accounting packages are mentioned below:

Ready to Use Package

Tailored Package

Smaller businesses are more likely to employ this method.

This is the type of software that is more typically utilized in geographically dispersed businesses.

The ready-to-use packages have high flexibility.

The customized packages' adaptability is relatively limited, so they cannot be employed by every business.

The system's ability to communicate with other systems is limited.

The number of systems with which it may communicate is limitless.

The number of people who can utilize it is limited.

The number of people who utilize it is enormous.


7. Define a computerized accounting system. Distinguish between a manual and computerized accounting system.

Ans: In a computerized accounting system, the database idea is applied. It is a database-driven system that allows users to process financial events and transactions in line with GAAP (Generally Accepted Accounting Principles) and generate reports based on their needs. The computerized system stores data in a well-organized manner.

There are two types of accounting systems: computerized accounting systems and manual accounting systems. The following diagram illustrates the major distinctions between the two accounting systems.

Computerized Accounting System

Manual Accounting System

Accounting software is used in computerized accounting to electronically record financial transactions

Physical registers and account books are used to manually record financial transactions in a manual accounting system.

The information is saved in

Well-designed databases.

The information is kept in original entry books.

Computer systems conduct the calculations, and all that is necessary is data input.

All of the computations are done by hand.

Computerized systems are quick and can complete tasks in a short amount of time.

Manual systems take a long time to set up.


8. Discuss the advantages of a computerized accounting system over a manual accounting system.

Ans: The following are some of the advantages of a computerized accounting system over a manual accounting system:

a. Speed: The computer accounting system drastically reduces the amount of time it takes to complete any operation.

b. Reliability: Accounting software for computers decreases the risk of human error, making it a more trustworthy platform.

c. Real-Time User Interface: A computer system with a real-time user interface allows numerous users to use it at the same time.

d. Scalability: The computer can be improved or modified depending on the requirement and usage.

e. Accuracy: The results generated by the computerized accounting system are precise.

f. Up-to-date information: The computerized accounting system offers users current information that they may utilize to make decisions.


9. Describe the various types of accounting software along with their advantages and limitations.

Ans: The accounting software can be classified into the following categories:

(a) Ready to use software: Small businesses, such as medical offices and grocery stores, employ this type of software.

Advantages:

i. This type of software is readily available on the market.

ii. This type of software has standard features and is hence less expensive.

iii. It is easier to train personnel with such software because it takes less training.

iv. Because it is a simple tool to learn and operate, these types of software have high adaptability.

Limitation:

i. The software is intended for a small group of users.

ii. This type of software is better suited to small businesses.


(b) Customized Software: Customized software is commonly utilized in medium and big businesses, such as hospitals and shopping malls.

Advantages:

i. This program is better suited for use in medium and big businesses.

ii. This type of software satisfies all of the needs of each user.

iii. The program can be customized to meet the needs of the users and the business.

iv. The program is simple to integrate with other systems.

Limitation:

i. The cost of software maintenance and installation is relatively significant.

ii. No standard training modules exist.

iii. Because the staff has limited expertise in such software, these forms of software can be difficult to operate.


(c) Tailored Software: This type of software is typically utilized by firms that are geographically dispersed, such as communication industries and multinational corporations.

Advantages:

i. This form of software is appropriate for globally dispersed businesses.

ii. The number of systems with which it may communicate is limitless.

iii. It may be used simultaneously by a big number of people.

Limitation: 

i. The package's installation and maintenance costs are considerable.

ii. Because these are quite specialized in their adaptability, they cannot be applied in every firm.


10. ‘Accounting software is an integral part of the computerized accounting system.’ Explain. Briefly list the generic considerations before sourcing an accounting software.

Ans: Accounting software is very significant in the business world. As a result, it should meet based on a computerized accounting system.

In the following fashion, any company's generic requirements:

a. Installation and maintenance costs: Accounting software must meet the company's needs for maintenance and installation. As a result, it's important that the accounting system evaluates the software's cost and business benefits.

b. Requirements for Training: Requirements for training are quite important.

an aspect that firms should consider while making a decision

software for accounting If the accounting software is simple to use, it is a win-win situation. It will be less difficult for them to operate.

c. Exchanging Data Capability: Another factor that organizations should consider when choosing accounting software is whether or not the software can transmit data. The accounting software's data must be easily transferable to another accounting system.

d. Flexibility: Accounting software must be flexible in terms of report generation, data entry, retrieval, and processing.

e. Company Size: Accounting software must be appropriate for the company's size. If the company is modest in scale and size, for example, the accounting software must be concerned with meeting its special needs in this regard.


11. ‘Computerized Accounting Systems are the best form of accounting systems.’ Do you agree? Comment.

Ans: Many advantages of using a computerized accounting system are listed below.

a. Speed: The computer accounting system drastically reduces the amount of time it takes to complete any operation.

b. Reliability: Accounting software for computers decreases the risk of human error, making it a more trustworthy platform.

c. Real-Time User Interface: A computer system with a real-time user interface allows numerous users to use it at the same time.

d. Scalability: The computer can be improved or modified depending on the requirement and usage.

e. Accuracy: The results generated by the computerized accounting system are precise.

f. Up-to-date information: The computerized accounting system offers users current information that they can utilize to make decisions.

g. Legibility: The computerized accounting system's findings and reports can be transformed into various sizes depending on the needs.


What do we Mean by a Computerized Accounting System?

Well defined programs used to set up income and expense accounts to be accessed anywhere by the means of the internet is known as Computerized Accounting System. Provided that digitalization is at the peak nowadays, Computerized Accounting is not only accurate and reliable but also efficient in producing documents with the latest information on hand in a very speedy manner. It is easily accessible to the target audience with a user-friendly interface providing real-time ease in lifestyle. It is a tedious job to keep records of every item sold in a shop, this system gives small businesses a chance to meet efficiency in customer service. Users are highly adaptable to Computerized Accounting.


Advantages of Computerized Accounting System

  1. Reduction in Needs of Calculators, Papers, Ledgers, Pen, Etc: Accountants have adapted to technology very well in recent times. This can be understood by observing the academic curriculum of institutions, followed by the practices of current professional accountants, auditors, and institutions.

  2. Lowering the Margin of Errors: As technology has made its space in our day to day life, the Computerized Accounting System has lowered the margins of errors in a very effective and efficient manner. Also, it has made finding inaccuracies and correcting them easier.

  3. Speed: Computerized Systems have increased the speed at which financial tasks are completed.

  4. Portability and Collaboration: Computerized Systems have made it possible to access the files and information at any location and device. Thus, enabling people to collaborate and complete tasks faster and effectively.


Basic Requirements for Every Computerized Accounting System

  • Reporting System: A particular set of words making up the final report.

  • Accounting Framework: This includes coding, grouping structures, and principles.

  • Data Processing: Transformation or conversion of data into a useful output in a certain sequence of actions.

  • Back-End Database: Data Storage system, responding to the user to an extent to which the user is entitled to. It remains hidden from the user.

  • Front-End Database: A bridge linking together the user and the back-end Database via interactions based on dialogue or options displayed to the user.


Providing Accountancy Class 11 Chapter 13 Solutions

Vedantu is a platform facilitating students to learn and strive towards success with the help of our extremely talented faculty members. By providing Accountancy Class 11 Chapter 13 solutions to all MCQs and subjective questions, students get a better understanding of the relevant topic. Accountancy certainly has a lot of questions raised by the students, to which assistance is always available on Vedantu. Notes are available on the Vedantu website for most of the subjects.


Expert Opinions and Solutions to Previous Years Question Papers

There are many methods to solve a single problem. Our experts give out the simplest and most reliable method for every problem asked. Along with Accountancy Class 11 Chapter 13 solutions, Vedantu provides solved previous years question papers to both the Central Board of Secondary Education (CBSE) and ICSE (ICSE/ISC) boards with well-detailed answers.


Solved Example:

Q. Explain various accounting packages.

Ans: The classification of accounting packages is as follows:

  1. Ready to Use: Suiting to small businesses with very low volume or frequency of accounting transactions.

  2. Customized (or Custom): Softwares may be customized to meet the requirements of the user. Default software may not satisfy the users. This suits large or medium enterprises.

  3. Tailored: For multiple users and geographically dispersed users, tailored accounting software may be used. These are made to meet specific requirements and special training might be needed for its users.


Fun Fact

The first prototype of a user-operable machine used thirteen wheels to enter numerical values. It was developed by Leonardo Da Vinci. “Summa de arithmetica, geometria, proportioni et proportionalita” was the first book that was published that focused on the aspect of bookkeeping. The book was written by Luca Pacioli and Leonardo Da Vinci, published in Venice in 1494.

FAQs (Frequently Asked Questions)

1. Is There a Need to Change Accounting Standards With Evolving Technology?

Prodigious development in the IT industry with its effect on the profession of auditing and accounting, resulting in the emergence of big data has made the bodies to consider revising the current accounting standards or issuing out new standards. Accountancy has evolved on many such levels. More and more doors open with the usage of Information Technology in Accountancy and will continue. Many people believe that access to new software has made an accountants' job easier. They are not wrong, since time is money, and digitalization has saved a lot of time consumed in balancing the books and verifying the ledger's accuracy.

2. Name and Briefly Explain Four Limitations and Four Advantages of the Computerized Accounting System.

Limitations of Computerized Accounting System are as follows:

  • Health Scares: Extensive use of computers can lead to various health problems like backache and eye strain. As a result, work efficiency may be reduced with an increase in medical bills.

  • Training Costs: New hardware and software are needed to be introduced to maintain effectiveness and efficiency. These require special training for the staff. The firm/company bears training costs.

  • Installation/Upgrading Costs: The systems are quite costly and it requires a huge sum to install well-established Accounting software.

  • Breach of Data/Virus Attacks: Computer viruses are well known for disrupting work worldwide. Computer systems need to be well monitored and maintained to secure data. Breach of data might result in harm to individuals or enterprises.

3. How to score high marks in Class 11 Accountancy using NCERT Solutions?

Students of Class 11 can score high marks in Class 11 Accountancy by using NCERT Solutions. NCERT Solutions by Vedantu can help students to understand the concepts of Class 11 Accountancy. NCERT Solutions are available in simple and easy-to-understand language. Experts prepare the solutions by using different sources. All questions of the Class 11 Accountancy NCERT book are given in simple format so that students can clear their doubts. 

4. How to download NCERT Solutions Class 11 Accountancy Chapter 13?

Students can find NCERT Solutions Class 11 Accountancy of all chapters online. Students can download the NCERT Solutions in the PDF file. They can save the NCERT Solutions Class 11 Accountancy on their computers. It is very easy to refer to the solutions and score high marks in Class 11 Accountancy. Students can download the solutions chapter-wise at free of cost from the Vedantu app and the Vedantu website to understand each chapter. This will help them to prepare for their exams quickly. 

5. What do you understand by Ledger class 11 Accountancy?

Ledger is defined as a book. The book contains the details of all the credits and debits in the related account. This helps to calculate the entire outcome of the different transactions. It also helps in making a list of the accounts and analyzing the current situation of the company. It helps in diagnosing the liabilities and assets of a company to prepare true balance and make plans. 

6. What are the important requirements of a computerized accounting system?

The main requirements for a computerized accounting system include reporting system, accounting framework, data processing, back-end database, and front-end database. Reporting system means preparing the final report. The accounting framework includes coding, grouping structure, and principles. Data processing means converting the given data into useful information. Back-end database means storage of data that is not accessible to the user. Front end database includes linking the user and the back-end database through interactions. 

7. What are the different concepts covered in Class 11 Accountancy Chapter 13?

Class 11 Accountancy Chapter 13 is based on different types of accounting systems and their benefits. The chapter includes several important concepts related to the computerized accounting system, its advantages, and its limitations. It also includes different software used for accounting systems. Students can study from the NCERT Solutions for Class 11 Accountancy Chapter 13 available on Vedantu to understand the concepts. Students can clear all doubts related to the accounting system using NCERT Solutions. 

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