Overview of Computerised Accounting System – important questions for Boards 2027

CBSE Class 12 Accountancy

1. MCQ · 1 mark

   Which statement best defines a Computerised Accounting System (CAS)? (A) It stores transactions without processing them. (B) It uses hardware and software to process accounting transactions into records and reports. (C) It records only cash transactions manually. (D) It prepares reports without accounting transactions as inputs.

   Answer

   (B) It uses hardware and software to process accounting transactions into records and reports — CAS processes accounting transactions to produce accounting records and reports.

2. SA · 2 marks

   A CAS processes 12 transactions, and each transaction is assumed to generate each of the five report types listed in the textbook. How many transaction-to-report outputs are generated? Show your calculation.

   Answer

   12 × 5 = 60 ∴ 60 transaction-to-report outputs

3. MA · 3 marks

   Name the three financial statements prepared by the Final Accounts Sub-system. (3 marks)

   Answer

   1. The Final Accounts Sub-system prepares statements for reporting purposes. The Profit and Loss account reports profit or loss by comparing income and expenses. 2. The Balance Sheet presents the financial position through assets, liabilities and capital at a particular date. 3. The cash flow statement reports cash inflows and outflows during a period, showing changes in cash position.

4. LA · 4 marks

   What is meant by the accounting cycle? Explain its opening stages, from analysing business transactions through recording them in journals and posting them to ledger accounts, up to preparing a trial balance. State the role of GAAP in preparing financial statements.

   Answer

   The accounting cycle is the process involved in identifying, measuring and communicating accounting information. 1. Business transactions are analysed to identify the financial events that need recording in the accounting process. 2. The analysed transactions are recorded in the journal, which provides the initial chronological record of accounting entries. 3. Journal entries are posted to ledger accounts, where transactions are classified under the relevant accounts. 4. A trial balance is prepared from the balances of ledger accounts, providing the next stage in the accounting cycle. Generally Accepted Accounting Principles (GAAP) govern the preparation of financial statements and provide the principles followed in reporting financial information.

5. LA · 5 marks

   Explain why coding is required in a Computerised Accounting System and what should guide the development of its coding structure. Describe how account-head coding uses a hierarchy to summarise information for financial statements.

   Answer

   Coding enables systematic classification of accounting data and the grouping of accounts needed to generate financial statements. 1. As the number of transactions increases, the volume and size of business change, making proper classification of data necessary. Coding provides an identification mark for an account or other element. 2. A coding scheme should group accounts at various levels so that the Position Statement (Balance Sheet) and Statement of Profit and Loss can be generated. 3. Development of a coding structure requires identification of the hierarchy and the attributes of the element being coded. The coding structure should be compatible with the inherent structure of that element. 4. Account-head coding uses a hierarchy to progressively summarise accounting information. The hierarchy supports the requirements of the Balance Sheet and Profit and Loss Account. A suitable coding structure therefore supports clear classification and the preparation of financial statements.

6. MCQ · 1 mark

   An accounting transaction is a record of: (A) inflow and outflow of resources. (B) only the profit earned by a business. (C) only the balances in ledger accounts. (D) the preparation of financial statements.

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7. SA · 2 marks

   What information does the data audit feature provide, and how does it help protect data integrity?

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8. MA · 3 marks

   Explain how the Final Accounts Sub-system supports reporting by preparing the Profit and Loss account, Balance Sheet and cash flow statement. (3 marks)

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9. LA · 4 marks

   Describe how accounts are reviewed and adjusted, how an adjusted trial balance is prepared, and how it is used to prepare financial statements. State how computers can be used to process the accounting cycle.

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10. LA · 5 marks

    Explain what liabilities and capital represent in the accounting equation. How can the owners’ claims change, and how is this change summarised for an accounting period?

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