Question

Briefly explain the difference between Manual & Computerised Accounting.

Answer 1

Difference between Manual Accounting and Computerised Accounting:

$\begin{array}{ccc}\text{Point Of Difference}& \text{Manual Accounting}& \text{Computerised Accounting}\\ \text{1.Recording}& \text{Recording of financial transactions is}& \text{Data content of these transactions}\\ & \text{through books of original entry.}& \text{is stored in well designed data base.}\\ \text{2.Classification}& \text{Transactions recorded in the books}& \text{No such data duplications is made.In}\\ & \text{of original entry are further classified}& \text{order to produce ledger accounts the}\\ & \text{by posting them into ledger accounts.}& \text{stored transaction data is processed}\\ & \text{This results in transaction data}& \text{to appear as classified so that same is}\\ & \text{duplicity.}& \text{presented in the form of report}\\ \text{3.Summarizing}& \text{Transactions are summarized to}& \text{The generation of ledger accounts is}\\ & \text{produce trial balance by ascertaining}& \text{not necessary condition for trail}\\ & \text{the balnaces of various accounts.}& \text{balance.}\\ \text{4.Adjusting}& \text{Adjusting entries are made to adhere}& \text{There is nothing like making adjusting}\\ \text{Entries}& \text{to the principle of matching.}& \text{entries for errors and rectifications.}\\ \text{5.Financial}& \text{The preparation of financial}& \text{The preparation of financial}\\ \text{Statement}& \text{statements assumes the availability}& \text{statements is independent of}\\ & \text{of trail balance.}& \text{producing the trial balance}\end{array}$