Essays on Trial Balance

Part A - The impact of accounting on the IT Development 4

Part B – Question 1 - Introducing or Upgrading Computerized Accounting Systems 5 (a) Advantages and Disadvantages of using a Computer Accounting System 5

Advantages 5

Disadvantages 5 (b) Considerations when setting up a Computerized Accounting System 6

Completion of an Accounting Cycle 6

Recording all Transactions from Manual Trial Balance 7 Running a Trial or Testing Phase 7 Verification of the Computerized Accounting System 7 (c) Chart of Accounts and Coding Structure is Followed by Impetus Limited 8

Part B – Question 2 - Accounting Packages 8

(a) The Features of an Accounting Package 8

Security 8

Reporting 9 Interdepartmental Operations 10 (b) ‘Module’ in an Accounting Package and its Purpose 10 (c) ‘Integrated’, ‘Semi-Integrated’ and ‘Non-Integrated’ Modules ...

According to Porter & Norton, (2007), accounting cycle refers to a series of steps that are performed in each accounting period and that climax in the preparation of some financial statements. The accounting cycle is necessitated by the time period principle of accounting that requires the preparation of financial statements on a periodic basis. In the items listed, three are steps in the accounting cycle. These are;

Post Transactions in the Ledger

The totals of various transactions are transferred from the journals to the ledger periodically. In a manual system, the frequency of posting the transactions depend on the level of activity in the business ...

Adjusting process is the method of analyzing and correcting the accounts at the end of the period before the preparation of the financial statements while the journal entries that always update the accounts at the end of every accounting period is the adjusting entries (Godwin & Alderman, 2012). Firstly, it is important to make the appropriate journal analysis of each transaction during the adjustment procedure. Secondly, post every transaction to the respective ledgers. However, at the end of the accounting period, several balances in the ledger account can be reported without any change in the financial statements. For instance, the ...

Several accounting transactions occurred during the month of December 20X5 and were as follows:

A withdrawal was made at a value of £15,000 from the business for the personal use of the owner. An existing retail store was purchased by the company for £150,000 on December 1. 10 desktops were purchased at a total cost of £3,500. The purpose of which is for the administrative and retail operations of the business. 10 printers totalling to £500 and miscellaneous computer accessories worth £275 were purchased. The purpose of which is to improve the purchase ordering as well as the selling operations of the business. 5 security cameras and other shop fittings ...

Posting in accounting is a process that involves the shifting of the balances in the general journal and those in the sub-ledgers into the general journal. Only the totals of the sub-ledger transferred to the general ledger and not the individual transactions. Posting can be done daily or monthly depending on the accounting manager’s decision (Bragg, 2013). The following are the steps involved in the posting in the accounting system. Identify and analyze transactions: Once the transaction is identified, it’s analyzed to see the accounts affected and the figures to be recorded (Franzel, 2009). The steps involved ...

As a matter of fact, financial occurrences happen all through the year. In most cases, these financial occurrences are recorded in books of accounts, in various ways depending on their nature. Notably, the recordings are first made in journal entries which mark the first step in financial analysis. An example of financial entries that are made in accounting is the adjusting entries. Arguably, adjusting entries are associated with income statement accounts as well as balance sheet accounts, (Loren, John & Jefferson, 2009).

Importance of adjusting entries

In this context, adjusting entries can be defined as journal entries that are usually made when an accounting ...