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492 Accountancy Computerised Accounting System 13 In chapter 12, you have learnt about the need for use of computers in accounting the nature and use of accounting information system. In this chapter, we shall discuss the nature of computrised accounting... More

492 Accountancy Computerised Accounting System 13 In chapter 12, you have learnt about the need for use of computers in accounting the nature and use of accounting information system. In this chapter, we shall discuss the nature of computrised accounting system, its advantages, limitations and sourcing. 13. 1 Concept of Computerised Accounting System A computerised accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements. Every accounting system, manual or computerised, has two aspects. First, it has to work under a set of well-defined concepts called accounting principles. Another, that there is a user-defined framework for maintenance of records and generation of reports. Inacomputerisedaccountingsystem,theframework of storage and processing of data is called operating environmentthatconsistsofhardwareaswellassoftware in which the Less