Assignment on Accounting
By Nege Desmond
Uploaded by: Nege Desmond
NAME: NEGE DESMOND
REGISTRATION NUMBER: 65197014EJ
COURSE OPTION: B.SC. AGRIBUSINESS MANAGMENT
COURSE CODE: ACC 101 – INTRODUCTION TO BASIC ACCOUNTING
Question: Differentiate between manual accounting system and computerized accounting system
- Financial statements are prepared on the basis of trial balance.
- Adjustments are made in order to balance the expenses incurred and the revenue generated in the accounting period. Hence, entries are passed for errors and rectification
- Books are closed at the end of accounting period by posting of closing and reversing journal entries.
- After the preparation of ledger accounts, balances of various accounts are known and hence a trial balance is prepared in order to summaries the data.
- The generation of financial statements is independent of trial balance because such statements are directly processed using the originally stored data.
- Need not pass manual entries for errors and rectification. Computerized vouchers are prepared and stored that follow the principle of cost matching revenue.
- Opening and closing account balances are stored in databases.
- Need not generate ledger accounts to produce trial balance. The data in each transaction is processed to show the balance report automatically.