CBSE Class 11 Financial Accounting: Computerised Accounting System NCERT Solutions

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NCERT Solutions PDF Class 11 PDF

This chapter, "Computerised Accounting System," for CBSE Class 11 Financial Accounting, provides a foundational understanding of how accounting tasks are managed using software. The NCERT Solutions cover the essential requirements for database applications, different categories of accounting packages (ready-to-use, customized, tailored), and the numerous advantages of adopting computerized systems, such as speed, accuracy, and automated document production. It also delves into distinguishing between various software types and their suitability for different business sizes and complexities. These solutions are designed to help students grasp the practical aspects of modern accounting practices, preparing them for examinations by offering clear explanations and structured answers to key concepts.

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Quick info

BoardCBSE
ClassClass 11
SubjectFinancial Accounting
Session2026
LanguageEnglish
TypeNCERT Solutions
ChapterChapter 14

Chapter summary

Chapter 14, "Computerised Accounting System," focuses on the fundamental components and benefits of using software for accounting. The NCERT Solutions explain the core requirements of database applications, classify accounting packages into ready-to-use, customized, and tailored types, and list the significant advantages of computerization. The chapter also includes distinctions between software categories and examples of their application in various business contexts, aiding students in understanding the transition from manual to digital accounting.

Learning outcomes

  • Understand the basic requirements of database applications.
  • Identify and differentiate between various categories of accounting packages.
  • Recognize the advantages of using computerised accounting systems.
  • Distinguish between ready-to-use and tailored accounting software.
  • Provide examples of suitable accounting software for different organizational needs.

Topics covered

Paper topics

  • Database Application Requirements
  • Categories of Accounting Packages
  • Ready-to-use Software
  • Customised Software
  • Tailored Software
  • Advantages of Computerised Accounting Systems
  • Speed in Accounting
  • Accuracy in Accounting
  • Up-to-Date Information
  • Automated Document Production
  • Scalability of Systems
  • Legibility of Records

Important topics

  • Categories of Accounting Packages
  • Advantages of Computerised Accounting Systems
  • Distinction between Ready-to-use and Tailored Software
  • Database Application Requirements

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Questions and Solutions

Question 1

State the four basic requirements of a Database Application.
Solution: A database application requires several key components to function effectively. These are:
  1. Front-end Interface: This is the user-facing part of the application. It acts as a bridge, allowing users to interact with the database by inputting data, making requests, and viewing information without needing to understand the complex underlying database structure.
  2. Back-end Database: This is the core data storage system, typically hidden from the end-user. It securely stores all the data and responds to queries from the front-end, providing authorized access to information.
  3. Data Processing: This involves the sequence of operations performed on the input data. The goal is to transform raw data into meaningful and useful information that aids in decision-making and analysis.
  4. Reporting System: This component is responsible for presenting the processed information in a structured and understandable format. It includes all the necessary elements to generate reports that convey key insights to users or management.

Question 2

Name the various categories of Accounting Package.
Solution: Accounting packages are generally classified into three main categories based on their flexibility and customization:
  1. Ready-to-use or Readymade Software: These are pre-built software packages designed for general accounting needs and are readily available for purchase and immediate use. They are typically suitable for small businesses with standard requirements.
  2. Customised Software: This type of software is based on a readymade package but has been modified or adapted to meet the specific needs of a particular business. It offers more flexibility than ready-to-use software.
  3. Tailored or Tailor-made Software: This software is developed from scratch or extensively modified to precisely fit the unique and complex requirements of a specific organization. It is the most flexible but also the most expensive option.

Question 3

Name the various categories of Accounting Package.
Solution: Accounting packages are generally classified into three main categories based on their flexibility and customization:
  1. Ready-to-use or Readymade Software: These are pre-built software packages designed for general accounting needs and are readily available for purchase and immediate use. They are typically suitable for small businesses with standard requirements.
  2. Customised Software: This type of software is based on a readymade package but has been modified or adapted to meet the specific needs of a particular business. It offers more flexibility than ready-to-use software.
  3. Tailored or Tailor-made Software: This software is developed from scratch or extensively modified to precisely fit the unique and complex requirements of a specific organization. It is the most flexible but also the most expensive option.

Question 4

List the various advantages of Computerised Accounting Systems.
Solution: Computerised Accounting Systems offer numerous benefits over traditional manual methods. Key advantages include:
  1. Speed: Transactions are processed and calculations are performed much faster than manual methods.
  2. Accuracy: Automation reduces the likelihood of human errors in calculations and data entry.
  3. Reliability: Consistent performance and reduced errors contribute to greater reliability of financial data.
  4. Up-to-Date Information: Financial data is updated in real-time, providing current insights for decision-making.
  5. Real Time User Interface: Users can access and interact with financial data as it is updated.
  6. Automated Document Production: Reports, invoices, and other financial documents can be generated automatically.
  7. Scalability: The system can easily handle increasing volumes of transactions as the business grows.
  8. Legibility: Computer-generated reports are clear, neat, and easy to read, unlike handwritten records.

Question 5

Give two examples each of the organisations where 'ready-to-use', 'customised', and 'tailored' accounting packages respectively suitable to perform the accounting activity.
Solution: The suitability of accounting packages depends on the size and complexity of the organization:
  • 'Ready-to-use' accounting packages are ideal for small-sized enterprises with standard accounting needs. Examples include:
    • Grocery stores
    • Medical stores
  • 'Customised' accounting packages are suitable for medium and large businesses that require some level of adaptation to their existing processes. Examples include:
    • Shopping malls
    • Hospitals
  • 'Tailored' accounting packages are best for businesses with highly specific, unique, or geographically dispersed operations. Examples include:
    • Multinational Corporations (MNCs)
    • Communication Industries

Question 6

Distinguish between 'ready-to-use' and 'tailored' accounting software.
Solution: Here's a distinction between 'ready-to-use' and 'tailored' accounting software based on various factors:
Basis of Difference Ready-to-Use Accounting Software Tailored Accounting Software
Nature of Business Primarily used in small and conventional businesses with standard accounting needs. Used in large and complex businesses, often with unique operational structures.
Adaptability Offers limited adaptability; designed for general use and may not fit highly specific requirements. Highly adaptable and specifically designed to meet the precise and unique needs of a particular business.
Linkage to Other Information Systems May have limited or standard integration capabilities with other systems. Designed for seamless integration with other specific information systems within the organization.
Cost Generally less expensive due to mass production and standardization. Significantly more expensive as it involves custom development and extensive customization.
Development Time Quick to implement as it is ready for use upon purchase. Requires considerable time for development, testing, and implementation.

Common mistakes

  • Confusing the definitions and applications of customized and tailored software.
  • Not fully appreciating the breadth of advantages offered by computerised systems.
  • Difficulty in providing appropriate examples for each software category.

Revision tips

  • Focus on understanding the core components of a database application.
  • Memorize the key differences between ready-to-use, customized, and tailored software.
  • Review the list of advantages and think of real-world scenarios where each applies.
  • Practice distinguishing between software types based on business size and needs.

Practice MCQs

Q1. Which component of a database application acts as the interactive link between the user and the database?

Q2. Which type of accounting package is typically used by small businesses like grocery stores?

Q3. Which of the following is NOT listed as a basic requirement of a Database Application?

Q4. Which accounting software category is best suited for large, geographically scattered businesses like MNCs?

Q5. What is a key advantage of computerised accounting systems mentioned in the chapter?

Frequently asked questions

What are the fundamental requirements for any database application?

The four basic requirements are a Front-end Interface for user interaction, a Back-end Database for data storage, Data Processing to transform input into information, and a Reporting System to present relevant data.

What are the main categories of accounting software?

Accounting software is broadly categorized into Ready-to-use (or Readymade) Software, Customised Software, and Tailored (or Tailor-made) Software.

Why is 'Speed' considered an advantage of computerised accounting systems?

Computerised systems can perform calculations and process transactions much faster than manual methods, leading to quicker financial reporting and decision-making.

What is the primary difference between 'ready-to-use' and 'tailored' accounting software?

Ready-to-use software is generic and suitable for small, conventional businesses, while tailored software is specifically designed and adapted for the unique, often complex, needs of large or specialized businesses.

Can you give an example of where 'customised' accounting software would be used?

Customised software is often used by medium to large businesses that have some unique requirements but can adapt to a pre-existing framework. Examples include shopping malls or hospitals that need specific functionalities beyond standard accounting.

How do computerised accounting systems ensure 'Accuracy'?

By automating calculations and reducing manual data entry, computerised systems minimize the risk of human error, leading to more accurate financial records and reports.

Important links

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