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Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II  : Computer technology and its usage have registered a significant development during the last three decades. Historically, computers have been used effectively in science and technology to solve the complex computational and logical problems. They have also been used for carrying out economic planning and forecasting processes. Recently, modern day computers have made their presence felt in business and industry. The most important impact of computers has been on the manner in which data is stored and processed within an organisation. Although manual data processing for Management Information System (MIS) has been quite common in the past, modern MIS would be nearly impossible without the use of computer systems. In this chapter we shall discuss the need for the use of computers in accounting, the nature of accounting information system and the types of accounting related MIS reports.

Meaning and Elements of Computer System A computer is an electronic device, which is capable of performing a variety of operations as directed by a set of instructions. This set of instructions is called a computer programme.  A computer system is a combination of six elements: 12.1.1 Hardware Hardware of computer consists of physical components such as keyboard, mouse, monitor and processor. These are electronic and electromechanical components.

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 


A set(s) of programmes, which is used to work with such hardware is called its software. A coded set of instructions stored in the form of circuits is called firmware. There are six types of software as follows:

(a) Operating System : An integrated set of specialised programmes that are meant to manage the resources of a computer and also facilitate its operation is called operating system. It creates a necessary interface that is an interactive link, between the user and the computer hardware.

(b) Utility Programmes : These are a set of computer programmes, which are designed to perform certain supporting operations: such as programme to format a disk, duplicate a disk, physically reorganise stored data and programmes.

(c) Application Software : These are user oriented programmes designed and developed for performing certain specified tasks: such as payroll accounting, inventory accounting, financial accounting, etc.

(d) Language Processors : These are the software, which check for language syntax and eventually translate (or interpret) the source programme (that is a programme written in a computer language) into machine language (that is the language which the computer understands).

(e) System Software : These are a set of programmes which control such internal functions as reading data from input devices, transmitting processed data to output devices and also checking the system to ensure that its components are functioning properly.

(f) Connectivity Software : These are a set of programmes which create and control a connection between a computer and a server so that the computer is able to communicate and share the resources of server and other connected computers.

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 


People interacting with the computers are also called live-ware of the computer system. They constitute the most important part of the computer system : • System Analysts are the people who design data processing systems. • Programmers are the people who write programmes to implement the data processing system design. • Operators are the people who participate in operating the computers.

People who respond to the procedures instituted for executing the computer programmes are also a part of live-ware. 12.1.4 Procedures The procedure means a series of operations in a certain order or manner to achieve desired results. There are three types of procedures which constitute © NCERT not to be republished part of computer system: hardware-oriented, software-oriented and internal procedure. Hardware–oriented procedure provide details about components and their method of operation. The software-oriented procedure provides a set of instructions required for using the software of computer system. Internal procedure is instituted to ensure smooth flow of data to computers by sequencing the operation of each sub-system of overall computer system.

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 


10.1 Meaning of Data

10.1.2. Meaning of Information

10.1.3. Qualities of Information

10.1.4. Types of Information

10.2. Data Processing

10.2.1. Meaning of Data Processing

10.2.2. Stages of Data Processing

10.2.3. Types of Data Processing

10.3. Data Base Management System (DBMS): Meaning Advantages and Disadvantages of DBMS

10.4. Models of Database Management System(Types)-

10.5. Meaning and Diagrammatic explanation

i) Simple/List structure data base model

ii) Hierarchical data base model

iii) Network data base model

iv) Relational data base model

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 

Database management system is a system in which we can store the data. So, concepts of DBMS (Short form of database management system) is to explain the system in which we can create, store, modify and delete the data. It also helps us to get our useful information out of this large store.
We can create any data in database management system. We can modify and delete anytime. DBMS secures our data. It provides the information to the user who will have the permission. Today, accounting is also done in DBMS.

Famous DBMS are : – 

1. Ms. Access

2. SQL Server
3. Oracle

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 

Uses of DBMS in Our Daily Life :-

1. When we deposit or withdraw money from bank ATM, bank adds or modifies our bank balance in their DBMS.

2. When we buy anything from online and place order. It is recorded in website’s owner’ database.

3. When we pay our lighting bill through our online bank account, we are just interacting with bank’s DBMS.

4. When we keep accounting records in Tally.ERP 9, actually, we are recording our accounting data in its DBMS

DBMS Language 

You know, I am teaching to you in English language. Because, I know little English, so it is very easy to convey my teaching lecture to you. My every taught lecture is also written on my website which is operated through html language. It means, I know two language for reaching to you. One is English language and Second is hyper text markup language. I have written text through typing. So, for fast typing, I also know typing language. Like this, for creating any database in DBMS, we also need to learn DBMS Language. Only after this, we can create DBMS and other can use it who do not know.

Following are the main language, you should learn :

1. Data Definition Language (DDL)
2.  Storage Definition Language (SDL)
3. View Definition Language (VDL)
4. Data Manipulation Language (DML)
5. Data Programming Language (DPL)

Data programming language has following sub-parts.

a) C
b) C++
c) Java
d) C#
e) Visual Basic
f) Cobol
g) Pascal

6. SQL Relational language

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 

Database management system is developed through programming language but its object is to give the benefit to general person. A normal accountant who do not know the programming language can easily take benefit from advance DBMS. Every DBMS should be made for achieving following objectives.

1. To Reduce Duplication 

You see that when we fill the data, there is the chance of duplicacy. It should the objective of DBMS to reduce this duplicacy. Recent DBMS will automatically check the duplicate record and give warning to you for not recording. By solving this problem, we can work on less storage space. Let me explain. You have a computer with 150 GB Hard disk but if you start to save same film 50 or 100 times with different name what will happen. Your space will not be more power to save any other thing. Like this, duplicated data requires also our free space of storage. So, it should be reduced.

2. To Share the Data 

To share the data to its users under the controlled environment is the objective of DBMS. For example, we all use Google Drive. Actually, it has been renamed of Google’s old Google Docs. Google docs application is also DBMS. It has been written in Java Programming language. You can invite other users who have Google account. So, only authorized user can get power to see shared data.

Recently, I got a query. A company is using Oracle software. Its accountant makes report of VAT and other Sales Reports. But its customer wants all reports including VAT in Tally.ERP 9 format. Both are different DBMS. I have suggest the accountant that he uses only those DBMS which is used by customer because it will be easy to give all the reports which your customer demands. Otherwise, it will be very difficult to convert from one format to other format. But all the developer and programmers who have developed these DBMS should take it as challenge because without sharing, there is nothing importance of any database.

3. To Bring Integrity of Data 

Integrity of data means to bring the accuracy and consistency. For this, DBMS gives power to its user that they can establish the validation controls. For example, you are interested to know the current salary of any employee to whom you are interested to appoint in your company. You can develop a form in which you can ask to mention the current salary. For its validation, you can give different options.

4. To Secure the Data 

Data of any organisation is the worthy asset. It should be protected. For security of the data is the responsibility of data administrator. DBMS should adopt advance security checks for rejection of unauthorized access  in database.

5. To Bring Independence in Data 

Data should be independent both physical and logical. In database fields any record should easily add or delete.

If your business need have finally convinced you to maintain online accounting system, then it is great. Now you don’t have to worry about taking regular backups of your accounting records  anymore as this online accounting system will save all your business record to your online plate form automatically like publishing of any website.

The online accounting system is more fast and transparent. Moreover each branch’s passed voucher entries will be online plate form and it will be easy to track movement of stock, if stock register will be shown online. In India, all most all banks accounting system is online. This is the reason that every customer can take the fund from any ATM machine because all banks accounts are now connecting RBI. Recently, Food Corporation of India has made online accounting system. With this online accounting system, FCI has connected all warehouses.

for more details On Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II  check here Accountancy Syllabus

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II 

To download Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II  check here 

Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II  Books to downloadDownload Link
  • Class 12 Accountancy Text book
  • Need for Maintaining of Accounts books by Non Profit Organisation

  • Accounting book 1

  • Accounting book 2
  • Accounting book 3

To download Karnataka Class 12 Commerce Accountancy CH10 COMPUTERS IN ACCOUNTING II  check here Accountancy papers

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