Explain role of computer in accounting?


Ans; the role of computer in accounting is explained as follows:

(1)TRANSACTION RECORDING: In the business field, computers are used mainly for recording day-to-day transactions. Accounting through computers enables the business organization to reduce paper work and space required for storage of accounting records.

(2)DEBOTOR’S ACCOUNTING: Accounting through computers helps the business organization to prepare and maintain up-to-date individual records of debtors.

(3).STORES ACCOUNTING; Accounting through computers enables the business organization to prepare and maintain up-to-date stores ledger, material cost analysis, cost per unit statement, stores control register,etc.

(4).PAY ROLL ACCOUNTING: computer can be used by the  business organisation to prepare and maintain pay roll and pay slips, statements income tax, provident fund deduction statements , employees loan accounts etc.

(5).Financial accounting: important documents such as vouchers cash memos, receipts, etc. can be created and maintained by using computer technology .similarly computers can be used to prepare and maintain SUBSIDIARY BOOK,TRIAL BALANCE,FINAL ACCOUNTS,RATIO ANALYSIS, CASH FLOW STATEMENT,FUND FLOW STATEMENT, FINANCIAL REPORTS ETC.

TALLY PACKAGE SOFTWARE IS USED FOR FIANANCIAL ACCOUNTING AND INVENTORY MANAGEMENT. IT IS MOST POPULAR SOFTWARE IN ACCOUNTING .

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