Computerised Accounting system Class 11 Chapter 13

NCERT Solution for class 11 Accountancy :Computerised Accounting system Chapter 13

Computerised Accounting system Class 11 taken From NCERT Book In this Chapter all the topics are covered like, Introduction Definiion or Important Points of the chapter 13

Computerised Accounting system Class 11
Computerised Accounting system class 11Intoduction

A Computerized Accounting System streamlines financial processes by utilizing accounting software and technology, enhancing accuracy and efficiency in recording and managing transactions. This modern approach replaces manual methods, offering advantages such as faster data processing, error reduction, and the generation of timely financial reports.

Computerised Accounting system class 11 Definition

Computerized Accounting System is a method of accounting that uses computers and accounting software to manage and process financial transactions. It automates various accounting tasks, making the process more efficient and accurate.

Computerised Accounting system class 11 Important Notes
  1. Advantages:
    • Accuracy: Reduces errors in calculations and data entry.
    • Efficiency: Streamlines tasks, saving time and enabling faster data processing.
    • Reporting: Generates timely and accurate financial reports.
    • Analysis: Facilitates in-depth financial analysis and decision-making.
  2. Components:
    • Accounting Software: Core tool for recording and processing transactions.
    • Databases: Secure storage for financial data.
    • User Interface: Graphical interaction platform.
    • Security Features: Protects sensitive financial information.
  3. Basic Features:
    • Data Entry: Inputting financial transactions accurately.
    • Chart of Accounts: Organizing accounts systematically.
    • Ledger: Recording and tracking individual accounts.
    • Reports: Generating financial statements for analysis.
  4. Transition Process:
    • Training: Employees need training for software proficiency.
    • Data Migration: Transfer existing data to the new system.
    • Testing: Ensure system accuracy before full implementation.
  5. Popular Software:
    • QuickBooks, Xero, Tally: Widely used accounting software.
  6. Challenges:
    • Cost: Initial setup and training expenses.
    • Security Concerns: Protecting financial data from unauthorized access.
    • Dependency: Reliance on technology, potential system failures.
Computerised Accounting system class 11 Question and Answer

Question:1 state the four requirement of a database applications.


The following are the four basic requirement of a database application .

  1. Front end Interface–it acts as an inetrface connecting link between the user and the database oriented software through which the user communication or interacts to the back-end database.
  2. back end database-It is the data storage.system that is hidden from the users, it responds to the requirement of the user to the extent the user is authotised to access.
  3. Data processing-It is a sequence of actions that are taken to transform the input data into useful information for taking various decisions
  4. Reporting system –it is an integrated set of objects that includes all the relevant information that constitutes a report.

Question:2 List the various advantages of computerised accounting system


The mentioned below are the various advantages of computerised accounting systems.

  1. speed
  2. accuracy
  3. reliability
  4. up-to-data information
  5. real time user interface
  6. automated document production
  7. scalability
  8. legibility

Question:3 Distinguish between ‘read to-use’and ‘tailored’ accounting software.


  1. Ready-to-Use Accounting Software
    • Definition: Ready-to-use accounting software, also known as off-the-shelf or commercial software, is pre-packaged software designed for general use and can be deployed immediately.
    • Features:
      • Standardized: Comes with a set of predetermined features and modules suitable for various industries.
      • Quick Implementation: Requires minimal setup and can be used almost immediately after installation.
      • Cost-Effective: Generally more affordable than tailored solutions due to a one-size-fits-all approach.
    • Advantages:
      • Time-Saving: Quick to implement, saving time on development and customization.
      • Cost-Effective: Lower initial costs compared to tailored solutions.
      • Regular Updates: Typically receives regular updates and support from the software vendor.
    • Disadvantages:
      • Lack of Customization: Limited flexibility as it may not cater to specific business processes.
      • Adaptation Challenges: Businesses may need to adapt their processes to fit the software.
  2. Tailored Accounting Software
    • Definition: Tailored accounting software, also known as custom or bespoke software, is specifically designed and developed to meet the unique needs and requirements of a particular business or industry.
    • Features:
      • Customized: Developed to match the specific workflows, processes, and requirements of a particular business.
      • Scalability: Can be easily adapted and expanded as the business grows or its needs change.
      • Integration: Seamlessly integrates with other business systems and software.
    • Advantages:
      • Enhanced Flexibility: Offers a high level of customization to align with unique business processes.
      • Improved Efficiency: Tailored solutions can optimize workflows, improving overall efficiency.
      • Long-Term Fit: Can adapt and evolve with the changing needs of the business.
    • Disadvantages:
      • Higher Initial Cost: Custom development may involve higher upfront costs compared to off-the-shelf solutions.
      • Development Time: Takes longer to develop and implement compared to ready-to-use software.
      • Maintenance: May require dedicated resources for ongoing maintenance and updates.

Question:4 Discuss the advantages of computerised accounting system over the manual accounting system.


  1. Accuracy:
    • Computerized systems reduce the risk of human errors in calculations and data entry, ensuring accurate financial records.
  2. Efficiency:
    • Automation of tasks such as data entry, calculations, and report generation enhances efficiency, saving time compared to manual methods.
  3. Timeliness:
    • Computerized systems allow for faster processing of financial transactions, ensuring timely availability of financial information and reports.
  4. Data Storage and Retrieval:
    • Electronic storage enables easy retrieval of historical data, eliminating the need for large physical storage spaces as in manual systems.
  5. Automation of Repetitive Tasks:
    • Routine accounting tasks, such as posting transactions and updating ledgers, are automated, reducing the manual workload and minimizing monotony.
  6. Financial Reporting:
    • Computerized systems facilitate the quick and accurate generation of various financial reports, including balance sheets, income statements, and cash flow statements.
  7. Ease of Audit:
    • Auditing becomes more straightforward with a computerized system, as it allows for easy tracing of transactions and provides an electronic trail of financial activities.

Question:5 Describe the various types of accounting software along with their advantages and limitations.


The various types of accounting software are.

  1. Read-to-use
  2. customised
  3. Tailored

Read-to-use software-This type of software is readily available in the market with prescribed and standard features. this accounting software is basically used by the small-size business enterprises. where the number of transactions is not so large. the cost of its installation. and maintence is also low. it has limited number of users. its adaptability is very high as is relatively easier to learn and operate. it does not have a wide scopes to link it with other information systems.

Customised software: customised software is the software that has standardised features to meet the special requirements of the users. it provides the scope of changing the features of accounting software.the functions of this software can be programmed as per the needs and requirements of the users. this type of software best suits the needs of medium and large businesses. its cost of installation and maintenance is comparatively higher. it can be easily linked to the other information systems.

Tailored software:- Tailored or tailor made accounting software is the software that is developed as per the specification and requirements of the users. this accounting software is generally used in the large business organisations with multi-users and geogrpahically scattered locations. it is designed to meet the specific needs of the users and form an Intergral part of the organisations MIS. it has infinite number of users.

Advantages of Ready-made Accounting software

  1. This software is easily available in the market.
  2. It is less expensive. as it comes with basic and standard features.
  3. It involves a lesser need for training
  4. it is less sophisticated.
  5. Its adaptability is very high as it is relatively easier to learn and operate.

Disadvantages of Ready-made-accounting software

  1. It has limited number of user.
  2. It is not suitable for medium and large business organisation, where the number of transactions is very large.
  3. It fails to cater the specific needs of the users.
  4. It suffers from the low level of data secrecy.
  5. it does not have a wide scope to link it with other information systems.

Advantages of customised and tailor-made accounting software

  1. This software is suitable for medium and large business organisation
  2. It caters the specific requirements and needs of the users.
  3. It can be modified as per the needs of the organisation.
  4. It has high level of security and minimises the loss and unauthorised access of data.

Question:6 Computerised accounting system are best form of accounting system’ do you agree ? comment


The statement “Computerized accounting systems are the best form of accounting system” is subjective and depends on various factors. Here are some considerations:

Advantages of Computerized Accounting Systems:

  1. Accuracy and Efficiency: Computerized systems reduce the risk of human error and streamline accounting processes, enhancing accuracy and efficiency.
  2. Timely Reporting: Automated systems provide real-time access to financial data, enabling timely decision-making.
  3. Data Storage and Retrieval: Electronic storage allows for easy retrieval and analysis of historical data.
  4. Security: Computerized systems offer features like access controls and encryption, enhancing the security of financial information.


  1. Cost: Implementing a computerized system may involve initial costs for software, training, and hardware. This could be a significant factor for smaller businesses.
  2. Training Requirements: Employees may need training to effectively use and navigate computerized accounting software.
  3. Dependency on Technology: Computerized systems are dependent on technology, and technical issues or system failures could disrupt operations.
  4. Customization: Some businesses have unique processes that may not align with standard software. In such cases, a tailored solution may be more suitable.


In conclusion, Computerized Accounting Systems represent a significant advancement over manual methods, offering benefits such as enhanced accuracy, efficiency, and timely reporting.


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