Unit – I: Computerized Accounting Package (Using Generic Software)
10 Marks Answers (Expanded, 200–220 words each) in Points
1. Company Creation & Ledger Creation
• Company creation: Involves setting up a new company in the software by entering all essential
details like company name, full address, financial year, base currency, industry type, statutory
compliance requirements, and accounting features. This step is crucial because it forms the
foundation for all subsequent accounting operations, ensuring that financial data is structured
and organized from the start. Proper company setup prevents errors, supports audits, and
facilitates smooth financial reporting.
• Ledger creation: Creating ledgers for assets, liabilities, income, and expenses allows systematic
categorization of all financial transactions. Each ledger may have sub-accounts, opening
balances, and groupings, which help in detailed financial tracking. Accurate ledger creation
ensures that all accounting entries are correctly recorded, financial statements are precise, and
business performance can be analyzed effectively.
2. Order Processing & Accounting Voucher
• Order processing: Manages sales and purchase orders, ensuring correct quantities, prices, and
delivery dates. It tracks the status of orders, facilitates timely billing, and helps in planning
inventory requirements. Efficient order processing reduces errors, improves customer
satisfaction, and ensures smooth operational flow.
• Accounting voucher: A document recording financial transactions such as payment, receipt,
journal, and contra entries. Each voucher contains details like date, ledger accounts involved,
amounts, and narration. Proper use of vouchers ensures transparency, accuracy, and legal
compliance in financial records. It also helps auditors verify transactions and supports
management in decision-making.
3. Inventory Voucher & Memorandum Voucher
• Inventory voucher: Records all stock-related transactions, including goods received, goods
issued, stock adjustments, and transfers. Maintains accurate inventory levels, helps in planning
procurement, and reduces the risk of stock-outs or overstocking.
• Memorandum voucher: Temporary or unapproved transactions are recorded for reference
without affecting financial statements immediately. Allows review and corrections before final
posting, reducing errors in financial and inventory records. Ensures better control and
monitoring of transactions.
4. Invoicing & Multiple Godown Handling
• Invoicing: Generates detailed bills for sales or purchases including item descriptions, quantities,
rates, taxes, discounts, and totals. Accurate invoicing ensures correct billing, faster payments,
and proper documentation for taxation.
• Multiple godown handling: Tracks inventory across different locations or warehouses. Helps in
preventing stock discrepancies, optimizes storage use, and ensures timely availability of
materials at each location. Supports efficient inventory management and operational planning.
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5. Transfer of Materials & Bank Reconciliation
• Transfer of materials: Enables movement of stock between godowns with automatic update in
the system. Ensures that inventory records are accurate, preventing loss or duplication of stock.
• Bank reconciliation: Matches company accounting records with bank statements to identify
discrepancies such as missing transactions, bank charges, or errors. Helps maintain accurate
cash records, prevents fraud, and ensures smooth financial operations.
6. Cost Centre, Cost Category & Bill of Material (BoM)
• Cost centre: Allocates expenses to departments, projects, or activities for precise tracking and
performance evaluation. Helps management control costs and make strategic decisions.
• Cost category: Classifies expenses as direct, indirect, fixed, or variable, facilitating detailed
analysis and better reporting.
• Bill of Material (BoM): Lists all raw materials, quantities, and specifications required to
manufacture a product. Assists in production planning, inventory management, and cost control,
ensuring efficiency and reduced wastage.
7. Budget & Controls
• Sets financial limits for revenues and expenses. Compares actual performance with budgeted
figures to monitor variances. Helps management prevent overspending, plan for future financial
needs, and ensure financial discipline.
8. Payroll Accounting
• Automates employee salary calculations including allowances, deductions, bonuses, and
benefits. Ensures timely payment, statutory compliance, and proper documentation. Supports
HR and finance departments in managing workforce costs effectively.
9. TDS & GST
• TDS (Tax Deducted at Source): Deducts taxes at source on payments such as salaries,
contractor payments, and professional fees. Ensures compliance with government regulations.
• GST (Goods and Services Tax): Records, calculates, and manages input and output taxes on
goods and services. Generates accurate GST reports and helps in legal compliance. Facilitates
proper tax planning and prevents penalties.
10. Backup & Restore, Export & Import Data
• Backup & restore: Creates secure copies of data to prevent loss due to technical failure,
corruption, or accidental deletion. Enables restoration of data anytime to maintain continuity.
• Export & import: Transfers data between different software systems or devices. Supports
reporting, analysis, or migration processes. Ensures accuracy, consistency, and smooth business
operations.
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20 Marks Answers (Expanded, 450+ words each) in Points
1. Company Creation & Ledger Creation
• Company creation: Setting up a new company includes entering all critical details such as
name, address, financial year, base currency, accounting features, statutory compliance
requirements, industry type, and additional preferences. Proper company creation forms the
foundation for all subsequent accounting processes, ensuring organized and structured data
management.
• Ledger creation: Creating ledgers for all accounts, including assets, liabilities, income, and
expenses, enables systematic recording of transactions. Sub-ledgers, opening balances, and
grouping facilitate detailed reporting and auditing. Accurate ledger creation is crucial to ensure
precise financial statements, avoid discrepancies, and help management analyze business
performance.
• Correct setup of company and ledgers reduces errors, enhances operational efficiency, and
supports strategic decision-making by providing reliable data.
2. Order Processing & Accounting Voucher
• Order processing: Manages the complete cycle of sales and purchase orders from initiation to
fulfillment. Tracks quantities, prices, and delivery schedules. Ensures smooth billing and timely
delivery of goods or services. Reduces human error, improves customer satisfaction, and
supports inventory planning.
• Accounting voucher: Records all financial transactions including payments, receipts, journal
entries, and contra entries with details such as date, accounts, amounts, and narration. Ensures
transparency, accuracy, and compliance with legal requirements. Supports auditing, reporting,
and management decision-making.
3. Inventory Voucher & Memorandum Voucher
• Inventory voucher: Records stock movements including goods received, issued, adjusted, or
transferred. Maintains accurate inventory levels, reduces the risk of stock-outs or overstocking,
and supports procurement planning.
• Memorandum voucher: Captures temporary or pending transactions for review before posting.
Ensures accurate financial and inventory records and minimizes errors. Supports effective
decision-making and internal control.
4. Invoicing & Multiple Godown Handling
• Invoicing: Generates accurate bills detailing item descriptions, quantities, prices, taxes,
discounts, and totals. Supports payment tracking, customer transparency, and taxation
compliance.
• Multiple godown handling: Tracks stock across various warehouses. Prevents discrepancies,
optimizes storage, and ensures timely availability of inventory. Helps in operational efficiency
and smooth business management.
5. Transfer of Materials & Bank Reconciliation
• Transfer of materials: Moves inventory between godowns with automatic updates. Prevents
errors, maintains accurate stock records, and facilitates production planning.
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• Bank reconciliation: Compares company accounts with bank statements to identify missing
transactions, charges, or errors. Ensures cash accuracy, prevents fraud, and supports financial
reporting.
6. Cost Centre, Cost Category & BoM
• Cost centre: Allocates expenses to specific departments or projects. Helps management
monitor performance, control costs, and make informed strategic decisions.
• Cost category: Classifies expenses (direct, indirect, fixed, variable) to facilitate analysis and
reporting.
• Bill of Material (BoM): Details materials, quantities, and specifications required for production.
Aids in production planning, cost management, and efficient resource utilization.
7. Budget & Controls
• Sets limits for income and expenditures. Compares actual figures with budgeted amounts to
monitor variances. Supports financial discipline, prevents overspending, and assists in strategic
planning.
8. Payroll Accounting
• Automates calculation of employee salaries, allowances, deductions, and benefits. Ensures
timely payment, statutory compliance, and proper documentation. Facilitates HR management
and cost control.
9. TDS & GST
• TDS: Deducts tax at source for payments like salaries, contractor fees, and professional charges.
Ensures legal compliance and proper tax filing.
• GST: Manages input and output taxes, calculates net tax liability, and generates reports. Ensures
tax compliance and accurate reporting, reducing risk of penalties.
10. Backup & Restore, Export & Import Data
• Backup & restore: Protects critical data from accidental loss or corruption. Ensures business
continuity by allowing data recovery.
• Export & import: Facilitates data transfer between systems or software. Supports reporting,
migration, and data analysis. Maintains data consistency, security, and smooth operations.
