Question
What is the role of Computer in Accounting?
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Answer
Role of Computer in Accounting:The manual system of recording accounting transactions requires maintaining books of accounts such as journal, cash book, special purpose books, and ledger and so on. From these books summary of transactions and financial statements are prepared manually.
The advanced technology involves various machines, which can perform different accounting functions, for example a billing machine. This machine is capable of computing discount, adding net total and posting the requisite data to the relevant accounts.
With substantial increase in the number of transactions, a new machine was developed to store and process accounting data with greater speed and accuracy. A computer, to which it was connected, operated this machine.
As a result, the maintenance of accounting data on a real-time basis became almost essential. Now maintaining accounting records become more convenient with the computerized accounting.
The advanced technology involves various machines, which can perform different accounting functions, for example a billing machine. This machine is capable of computing discount, adding net total and posting the requisite data to the relevant accounts.
With substantial increase in the number of transactions, a new machine was developed to store and process accounting data with greater speed and accuracy. A computer, to which it was connected, operated this machine.
As a result, the maintenance of accounting data on a real-time basis became almost essential. Now maintaining accounting records become more convenient with the computerized accounting.
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