Application of Computers in Accounting — Account STD 11 Commerce — Question

Comparison between Manual Accounting and Computerised Accounting.
Identifying Financial Transactions: Identifying Financial Transactions and recording them in the books of account by applying the principle of accounting is a manual process carried out by an authorised person or on the basis of the accounting manual. This process is, thus, common under both the processes.
Recording: The process of Recording transaction in the books of original entry, posting them in the ledger accounts, performing mathematical functions, i.e., addition and subtraction are carried out manually under the manual process. In the computerised process, transactions are recorded in the books of account and the remaining functions are performed without any further process or command being carried out manually.
Classification: In the manual process, the transactions are recorded in the books of original entry and are posted into the ledger accounts. It means that, after recording the transaction, another process of posting is performed. In computerised accounting, the posting process is carried out by internal sorting of data, i.e., with the help of utility or application software, without any further process.
Summarising: In the manual system of accounting, the data under each Ledger is summarised and a balance of each account is ascertained to prepare a Trial Balance. As a result, preparing ledger accounts is essential to prepare a Trial Balance. In the computerised process, a transaction or event, once recorded, is stored in the database and can be processed to produce a Trial Balance directly.
Adjustment Entries: Adjustment Entries are passed to rectify an error or to follow the matching concept of accounting, i.e., matching the cost with revenue. The process of passing adjustment entries can be equated with the recording process. These entries are identified and recorded in the books of account. The remaining process is the same as discussed above.