Question

Distinguish between a Manual and Computerized Accounting System?

Answer 1

BASIS FOR COMPARISON	MANUAL ACCOUNTING	COMPUTERIZED ACCOUNTING
Meaning	Manual Accounting is a system of accounting that uses physical registers and account books, for keeping financial records.	Computerized Accounting is an accounting system that uses an accounting software, for recording financial transactions electronically.
Recording	Recording is possible through book of original entry.	Data content is recorded in customized database.
Calculation	All the calculation is performed manually.	Only data input is required, the calculations are performed by computer system.
Speed	Slow	Comparatively faster.
Adjusting entries	It is made for rectification of errors.	It cannot be made for rectification of errors.
Backup	Not possible	Entries of transactions can be saved and backed up
Trial Balance	Prepared when necessary.	Instant trial balance is provided on daily basis
Financial Statement	It is prepared at the end of the period, or quarter.	It is provided at the click of button.