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CBSE Quick Revision Notes and Chapter Summary

Class-11 Accountancy
Chapter 10 Computers in Accounting

Introduction
We are on the threshold of 21st century. Today the most commonly used word in this country is
computer. We are living in a period of Computer revolution or rather micro computer revolution.
The base of a micro computer, has revolutionized many aspects of our lives they have
computerized watches, Calculators, televisions, video games etc. A Computer is an electronic
machine that solves the problems with speed and accuracy. It not only calculates and makes
comparison faster but also stores information. It is a machine that processes data millions of times
faster than human beings.

Meaning and Definition

A computer is an electronic device or Machine which performs Various functions and helpful in
accounting. A Programmable machine that receives input, stores and automatically manipulates
data, and provides output in a useful format.
According to Internal Standards organization
A computer is a data processor that can perform substantial computations including numerous
arithmetic and logic operations without intervention of human operator during the sun.
According to U.S. Institute
A computer is a device capable of solving problems by accepting data , performing described
operations on the datas and supplying the results of these operations.

Features/characteristics
(1) It can store large amount of information within it and can make it available to use when
required.
(2) The Computer can do various operations on the data, technically it is known as data
processing.
(3) Performing calculation, such as addition, subtraction, multiplication, division etc.
(4) Performing - Logic/ comparing data: The computer can perform logic functions and can
compare two numbers or alphabets and arrange them in desired sequence.
(5) Editing of Text: In application of word processing, the business documents can be prepared
easily and efficiently.

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Hardware
The physical equipments and components of the computer system are called hardware. The word
hardware refers to the actual machine in use. It is one which we can see and feel, the machine
Parts CPU , Key Board , Printer , Floppy drives etc. it Refers to objects that you can actually touch,
like disks, disk drives, display screens, keyboards, printers, boards, and chips. In contrast,
software is untouchable. Software exists as ideas, concepts, and symbols, but it has no substance.

Software
The term software implies the systems analysis and programming that have to be performed
before a computer can be used. It refers to the various kinds of programs that cause the hardware
to function in the desired way. In the other words, the set of instructions written to solve a
problem on a computer is called software.

(1) Analog computers: - Analog computers are those which work on the basis of continuous
measurement of physical quantities e.g. pressure, voltage, current, temperature, current, length
etc. We can quote a number of instruments that work on the principles of analog computers.
:- Thermometer, speedometer, wall- clock, voltmeter, ammeter etc.
(2) Digital computers: - Digital computers are those which represent data in terms of
discrete number and processes data using the standard arithmetic operations. These computers
directly operate on numbers. These computers directly operate on numbers and produce precise
results. These are used in a unlimited number of applications are for e.g. desk calculators and
electronic computers.

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(3) Hybrid computers: - In certain situations, a computer that combined the most desirable
features of both digital and analog computers is employed. They are suited for situations were
digital processing of data collected in analog form is desirable. For e.g. in a hospital intensive care
unit analog devices may measure a patience.

MANUAL vs COMPUTERIZED ACCOUNTING

Accounting records can be maintained manually or through the computer. The main purpose of
both is to maintain the accounting records e.g. Journal, Ledger, Trial Balance, Cash Book
Preparation of Cash flow statement and Financial statements etc. Not only for these, there are
some other areas where it is helpful. For example : inventory control, payroll etc. Computerised
accounting is better than the manual accounting because in computerized accounting there is no
need of passing closing entries, it is automatically done through the accounting process.
Operating Softwares : Windows XP, Windows Vista, Windows 7, Mac, Linux etc.
Utility Softwares : Anti virus, Back up software, Scandisk softwares, Disk defragmenter etc.
Application Softwares : Flash, Photoshop, Firefox, Internet explorer, Notepad etc.
Humanware
(a) Operator : The main function of an operator is to operate or control the computer system.
(b) System Analyst : The main function of system analyst is to design the data processing system.
(c) Programmer : The main function of a programmer is to write the effective program and to
implement the data processing system.

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