Category Archives: Accounting

Functions Performed by Computerised Accounting Software Available in the Market

There are many types of computer software available in the market. The list of software available in the market is exhaustive including  Application software, Customer relationship management (CRM) software, Application software, Enterprise resource planning (ERP) software, Closed source software, Operating system, System software, Utility software, Malware, Firmware, Driver Software, Freeware, Shareware, Open source software, Recording…

Advantages and Disadvantages of Computerised Accounting

Computers offer many advantages, such as increased productivity, efficient data management, and access to vast information. However, they also have disadvantages, including the risk of cyber-attacks, reduced physical activity, and potential over-reliance on technology, etc. Let us study here in detail.  Advantages of Computerised accounting: Disadvantages: Related posts: WHAT IS THE MEANING OF COMPUTERIZED ACCOUNTING?…

Accounting terminologies including terms Used in Computerised Accounting

Accounting terminology is the language used by accounting professionals such as income, expenses, assets and liabilities, etc.  A computerised accounting system is a platform that processes financial transactions and events according to the GAAP (Generally Accepted Accounting Principles) a set of accounting rules, standards, and procedures prescribed by the Institute of Chartered Accountants of India,…

Difference between Computerised and Manual Accounting

The process in which the accounts are handwritten on the paper-based register in the form of ledgers, subsidiary books, and journals to record the financial transactions is called Manual Accounting. The process in which the financial accounts are systematically accounted through specially developed computer accounting software.  The following are the differences between a computerized accounting…

Features of a Computerized Accounting System

A computerized accounting system is a software application that automates financial records and reporting processes to make them faster, more accurate, and easier to manage. It reduces the manual entry of data, eliminates redundant operations, and reduces accounting error risk with built-in controls. The main features of a computerized accounting system are; Updates: In a…

What is the meaning of computerized accounting?

As the name says ‘computerised accounting’ is the use of computers, software, and hardware to process financial transactions and events and produce accounting reports:   A computerized accounting system (CAS) automates financial records and reporting processes of financial transactions and events and produce reports based on user requirements. The process of financial transactions done through…

Preparation and Presentation of Financial Statements of Banks

The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis of accounting on a going concern basis, unless otherwise stated, and conform in all material aspects to Generally Accepted Accounting Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms/guidelines prescribed by the Reserve Bank of India (RBI), Banking…

Accounting Treatment of Specific Items under accounting policies of banks

The term “accounting treatment” represents the prescribed manner or method in which an accountant records and presents a specific business transaction or event in the establishment’s financial statements. The accounting policies of Banks require banks to disclose the key areas of operations in one place (under Schedule 17) along with notes to accounts in their…

Understanding Comments on Profit and Loss Account Items

Many methods and techniques are used in the analysis of financial statements including profit and loss accounts. They include (i).Trend analysis (Historical standard): A comparison is done of current performance with past figures of the firm. (ii). External Standards: Comparison is done between the two business concerns of the same size, which can also be…

Disclosure Requirements of Banks to Notes to Accounts,

Financial statement disclosures are non-financial information that appears at the end of a financial statement. This information helps investors, lenders, and others make decisions. The Basel Framework’s Pillar 3 outlines a set of public disclosure requirements for internationally active banks. These requirements provide market participants with information to assess a bank’s capital adequacy and material…