Role of Computers in Accounting

3502 Words Feb 11th, 2012 15 Pages
Trial Balance and Computers

Computer and Computerised Accounting System


With the expansion of business the number of transactions increased. The manual method of keeping and maintaining records was found to be unmanageable. With the introducton of computers in business, the manual method of accounting is being gradually replaced. And finally, the database technology has revolutionised the accounts department of the business. organisations. In this lesson, we will study about characteristics of computer, role of computers in accounting, need of computerised accounting, etc.

OBJECTIVES After studying this lesson, you will be able to: state the meaning and characteristics of
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In the course of this evolution, they have become faster, smaller, cheaper, more reliable and user friendly. Components of Computer A computer consists of the major components i.e., Input Unit, Central Processing Unit and Output Unit. Diagrammatically, these components may be presented as follows:


Fig. 12.1 Components of computer



Computer and Computerised Accounting System Input Unit Input unit is controlling the various input devices which are used for entering data into the computer. The mostly used input devices are keyboard, mouse, and scanner. Other such devices are magnetic tape, magnetic disk, light pen, bar code reader, smart card reader, etc. Besides, there are other devices which respond to voice and physical touch. Physical touch system is installed at airport for obtaining the online information about departure and arrival of flight. The input unit is responsible for taking input and converting it into binary system. Central Processing Unit (CPU) The CPU is the control centre for a computer. It guides, directs and governs its performance. It is the brain of the computer. The main unit inside the computer is the Central Processing Unit. Central Processing Unit is to computer as the brain is to human body. This is used to store program, photos, graphics, and data and obey the instructions in program. It is divided into three subunits: (a) Control Unit (b) Memory Unit (c) Arithmetic Logic Unit (ALU) Control Unit Control
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