Question
State the differences between the Traditional Manual System and Computerised Accoutingsystem.
| No. | Traditonal Manual System of Accounting | Computerised Accounting System |
| $1.$ | In this system transactions are recorded in manual books of account like journal and subsidary looks. | In this system transaction are recorded using computer and software like Tally. |
| $2.$ | In this system recorded transactions have to be posted in different ledger accounts. Manually. | In this system recorded transactions are processed by accounting software and posting is done automatically. |
| $3.$ | In Manual System after posting, trial balance is to be prepared taking balance of each ledger account manually. | In computerised system Trial Balance is prepared automatically by accounting software. |
| $4.$ | Financial statements like profit and loss account, Balance sheet and cash flow statement are prepared manually. | Financial statements like profit and loss account, balance sheet and Cash flow statement are prepared automatically. |
| $5.$ | This system is comparatively slow. | This system is comparatively fast. |
| $6.$ | This system requires more manpower. | This system requires less manpower. |
| $7.$ | There are more chances of errors in this system. | There are less chances of errors in this system. |
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