Class 11 Accountancy - Chapter Applications of Computers in Accounting NCERT Solutions | ‘An accounting report is essential
‘An accounting report is essential a report which must be able to fulfil certain basic criteria' Explain? List the various types of accounting reports.
When a data is processed properly than it becomes information and when such related information is summarized to meet a particular need, it is called a report. The content and design of the report is expected to vary depending upon the level to which it is submitted and decision to make on the basis of the report. A report must be effective and efficient to the user and should substantiate the decision making process. Every accounting report must be able to fulfill the following criterion:
(i) Relevance
(ii) Timeliness
(iii) Accuracy
(iv) Completeness
(v) Summarization
Type of Accounting reports:
The accounting reports generated by the accounting software may be either routine reports or on the specific requirements of the user. E.g. the ledger is a routine report while a report on supplies of a particular item by a given party is an on-demand report. However,from a broader perspective, the Accounting related MIS reports may be of following reports:
(i) Summary Reports: Summarizes all activities of the organisation and present in the form of summary reports like profit and loss account and balance Sheet.
(ii) Demand Reports: This reports will be prepared only when the management requests them, e.g, Bad Debts Report for a given product ,Stock Valuation Report.
(iii) Customer /Supplier Reports: According to the specifications of the management it will be prepared. e.g. Top 10 Customers reports , Interest on customer Account / Invoices, Statement of Account, Customer Reminder Letters Outstanding /Open Delivery Order ,Purchase Analysis ,Vendor Analysis Report.
(iv) Exception Reports: According to the conditions or exception the report is prepared. e.g. Inventory Report in short supplies ,Stock Status Query ,Over stocked Status ,etc.
(v) Responsibility Reports: The MIS structure specifies the premises of management responsibilities. e.g the report on Cash Position is to be submitted by the head of finance and Accounts Departments.
More Questions From Class 11 Accountancy - Chapter Applications of Computers in Accounting
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State the relationship between information and decision.
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Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.
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List the distinctive advantages of a computer system over a manual system.
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State the various essential features of an accounting report.
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Draw block diagram showing the main components of a computer.
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Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
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‘An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives’. In the light of this statement, explain the relationship between information and decisions. Also explain the role of the Transaction Processing System in facilitating the decision-making process in business organisations.
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Fill in the correct words :
1. The user oriented programmes designed and developed for performing certain specific tasks are called as ...........
2. Language syntax is checked by software called as ...........
3. The people who write programmes to implement the data processing system design are called as ...........
4. ........... is the brain of the computer.
5. ........... and ........... are two of the important requirements of an accounting report.
6. An example of responsibility report is ........... - Q:-
What is Accounting Information System?
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Name three components of a Transaction Processing System.
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Recently Viewed Questions of Class 11 Accountancy
- Q:-
Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment. Of which he paid ₹ 1,00,000 for furniture, ₹ 2,00,000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid ₹ 5,000 as their salaries. Out of the stationery bought he sold some stationery for ₹ 1,50,000 for cash and some other stationery for ₹ 1,00,000 on credit basis to Mr. Ravi. Subsequently, he bought stationery items of ₹ 1,50,000 from Mr. Peace. In the first week of next month there was a fire accident and he lost ₹ 30,000 worth of stationery. A part of the machinery, which cost ₹ 40,000, was sold for ₹ 45,000.
From the above, answer the following :
1. What is the amount of capital with which Mr. Sunrise started business?
2. What are the fixed assets he bought?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. What are the expenses?
6. What is the gain he earned?
7. What is the loss he incurred?
8. Who is the debtor? What is the amount receivable from him?
9. What is the total amount of expenses and losses incurred?
10. Determine if the following are assets, liabilities, revenues, expenses or none of the these: sales, debtors, creditors, salary to manager, discount to debtors, drawings by the owner. - Q:-
If suspense account does not balance off even after rectification of errors it implies that:
(a) There are some one sided errors only in the books yet to be located.
(b) There are no more errors yet to be located.
(c) There are some two sided errors only yet to be located.
(d) There may be both one sided errors and two sided errors yet to be located. - Q:-
State the meaning of incomplete records?
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Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
a. Similar business acquired the required building in 2000 for ₹ 10,00,000
b. Building cost details of 2003
c. Building cost details of 1998
d. Similar building cost in August, 2005 ₹ 25,00,000 - Q:-
Why are the rules of debit and credit same for both liability and capital?
- Q:-
Which is the last step of accounting as a process of information?
a. Recording of data in the books of accounts
b. Preparation of summaries in the form of financial statements
c. Communication of information
d. Analysis and interpretation of information - Q:-
What are the different types of errors that are usually committed in recording business transactions?
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The framework of storage and processing of data is called as ........
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Choose the Correct Answer :
The ledger folio column of journal is used to:
(a) Record the date on which amount posted to a ledger account.
(b) Record the number of ledger account to which information is posted.
(c) Record the number of amounts posted to the ledger account.
(d) Record the page number of the ledger account. - Q:-
Recording of transaction in the Journal is called:
(i) Casting
(ii) Posting
(iii) Journalising
(iv) Recording
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