Computerised Accounting System
What the exam tests
Computerised Accounting System tests how accounting software records transactions, processes ledgers, generates reports and controls data. Core features include a chart of accounts, unique ledger codes, voucher entry, automatic posting, database storage, trial balance and financial statements. Advantages include speed, accuracy, easy reporting and scalability; limitations include setup cost, training needs, power dependence, data security risk and the need for backups. An audit trail and access controls are essential.
Worked example
A firm records a credit sale of Rs. 20,000 to R. The operator selects a sales voucher and enters R's ledger code, the sales ledger and the amount. The system debits R's account and credits Sales by Rs. 20,000. Because both ledgers are coded, the trial balance and debtors schedule update automatically. If the wrong customer code is entered, the trial balance still agrees, but the debtors ledger is wrong. This shows that a computerised system enforces arithmetic, not the correctness of source data.
Traps
Do not assume automatic reports are error-free; wrong codes and wrong voucher types produce wrong reports. Do not skip backups. Do not share passwords or leave administrator access open. Do not treat software as a substitute for accounting knowledge: garbage in, garbage out. Check that the chosen voucher type matches the transaction.