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1. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
Gamut of accounting process goes through phases of
prepare a voucher
make an accounting entry
post entries in the ledger
prepare a trial balance
pass and post adjusting entries
prepare adjusted trial balance
prepare Income Statement & Balance Sheet
prepare Cash Flow Statement

2. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
Gamut of accounting process goes through several phases,
offering opportunities to commit errors like
Posting a debit -without corresponding credit
-for a corresponding debit
Posting a credit -without corresponding debit
-for a corresponding credit
Transposing figures , posting Rs 123/- for Rs 132/-
Wrong totals
Posting to a wrong a/c

3. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
Gamut of accounting process goes through several phases,
offering opportunities to commit many errors.
No more in computerized environment !

4. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
Gamut of accounting process goes through several phases,
offering opportunities to commit many errors.
No more in computerized environment !
Further you benefit from
- ability to handle bulky data processing in real time
- across different office locations
- integration of cross functional inputs
- provision of cohesive data for decision making.

5. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
Computerized environment takes care of gamut of
accounting process plus offers -
ability to generate vouchers
cheque writing facility
interest calculations
aging analysis of debtors & creditors
cost center analysis
TDS and other reports for taxation purposes
audit trail for control & fraud detection

6. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
Computerized environment offers standard
software packages like
Tally
Ex-NGn
Trio
ModAct
Plus tailor made industry specific packages for
Banking, Travel, Financial Portals, Stock Brokers ,
Hotels, Insurance and other industries.

7. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
However, current trend is to offer computerized
environment to Accountants as a part of software
packages that span over entire value chain of the
business. These are generally known as Enterprise
Resource Planning (ERP).

8. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
These are generally known as Enterprise Resource
Planning (ERP).
ERP integrates order processing, accounting, inventory,
production, dispatch, vendors and customers into a
single network and
Provides meaningful and accurate reports to managers
on need to know basis as and when required.

9. Chapter Eleven --
Chapter Eleven Financial Accounting in Computerized
Financial Accounting in Computerized
Environment
Environment
These are generally known as Enterprise Resource
Planning (ERP).
In addition to providing computerized environment
for accounting , main objective of ERP is
to increase revenues &
to improve efficiency
Good Luck !

10. Chapter Twelve--
Chapter Twelve Understanding Financial Statements
Understanding Financial Statements
Financial figures in absolute amounts do not provide
complete picture.
Net earnings from operations disclose profitability of a
company.
But the figure can include one time item like sale of assets, in
which case earnings from operations are less to that
extent.