Page 7 - Lesson Note

(iv) Easy to adaptation: The accounting software must be such which is easy to
apply in organisation.
(v) Secrecy of data: The accounting software must be such which provide the
secrecy of business data, from others.
Preparation of Accounts Groups
Groups of accounts means classifying the accounting transactions into different
heads like Assets Group, Liabilities Group, Income Group and Expenses Group. By
these grouping of accounts the final Accounts are meaningful for its users.

Generation of Accounting Reports
After collecting business data, it is converted into meaningful informations. Such
summarised and converted information is known as a report.

The report is more effective if it is based on accurate and timely data.

A report must be relevant to users and contain all relevant information like Debtor’s
Report, Creditor’s Report, Trial Balance and Financial Statement Report and others.

Scope
(i) The scope of the unit is to understand accounting as an information system for
the generation of accounting information and preparation of accounting reports.
(ii) It is advised that the working knowledge of Tally software will be given to the
students for generation of accounting software. For this, the teachers may refer
chapter 4 of Class XII NCERT text book on Computerised Accounting System.
PROJECT
COMPREHENSIVE PROJECT
Mr. Deepak, after completing his graduation wants to start his own business but he
was little bit confused which business to start. Moreover, he was short of funds also
as only Rs.2,00,000 (to be used in business) were available with him, which he saved
by doing part time jobs during his graduation. He discussed the matter with his
father, Mr. Mahesh, a Bank Manager and decided to start a shop dealing in man’s
wear from 1st April 2012 His father also help him in raising loan of Rs. 10,00,000 from
xyz Bank against his personal guarantee. On 5th April 2012, Mr. Deepak open a Bank
A/c with Rs. 5,000 in xyz Bank. Bank also credited his Bank A/c with the amount of
loan on 1st June 2012, after completing all formalities, which is to be repaid in Ten
equal yearly installments along with with interest @12% p.a. on 31st March every
year. Same day he purchased a computer for Rs. 50,000 to maintain all the records
regarding purchase, sales and stock and make the payment by cheque. He also
deposited Rs. 45,000 in Bank.

It was also decided that all the purchases are to be made by cheques and all receipts
on account of sales were to be deposited into Bank. He named his business as M/s
Rajasthan Man’s wear and entered into a contract with a dis- tribute of Man’s wear
on 15th June 2012. The distributer want him to make all the payments with regard to