COMPUTERISED ACCOUNTING Ans: PMT (rate, nper, pv, [fv], [type])

1. Which formulae would result in TRUE if C3 is less than 14 and 6.In Excel, the chart tools provide three different options , and
D4 is less than 200? for formatting.
(a)=AND(C3>14,D4>20) (a) Layout, Format, Data Maker
(b)=AND(C3>14,C4<200) (b) Design, Layout, Format
(c)=AND(C3>14, D4<20) (c) Format, Layout, Label
(d)=AND(C3<14,D4,200) (d) Design, Data Maker, Layout
Ans: =AND (C3<10, D4,200) Ans: Design, Layout, Format
2.When navigating in a work book, which command is used to 7.State any three requirements which should be considered before
move to the beginning of the current making an investing decision to
row? choose between ‘Desktop database’or ‘Server database’.
(a) [Ctrl]+[Home] Ans: The points to be considered before making investment in a
(b) [Page Up] database: (any three) (i) What all data is to be stored in the
(c) [Home] database? (ii) Who will capture or modify the data, and how
(d) [Ctrl]+[Backspace] frequently the data will be modified? (iii) Who will be using the
Ans: [Home] database, and what all tasks will they perform? (iv) Will the
3.Which function results can be displayed in Auto Calculate? database ( backend) be used by any other frontend application? (v)
(a) SUM and AVERAGE Will access to database be given over LAN/ Internet, and for what
(b) MAX and LOOK purposes?
(c) LABEL and AVERAGE 8.‘Accounting Vouchers used for entry in Tally software’
(d) MIN and BLANK Define any three types of vouchers which form the basis of entry in
Ans: SUM and AVERAGE Tally software.
4.What category of functions is used in this Ans: Types of Accounting Vouchers (i) Contra Vouchers (ii)
formula:=PMT(D11/15,D12,D 12,5) Payments Vouchers (iii) Receipt Vouchers
(a) Logical 9.Explain the use of ‘Conditional Formatting’.
(b) Financial Ans: Uses of conditional formatting: (i) It helps in making needed
(c) Payment information highlighted. (ii) It changes the appearance of cells
(d) Statistical ranges. (iii) Color scale may be used to highlight cells. (iv) useful
Ans: Financial in making decision making
5.The syntax of PMT Function is 10.State the features of Computerized Accounting system.
(a) PMT(rate,pv,nper, [fv],[type]) Ans: Features of computerized accounting system: (i) Simple and
(b) PMT(rate,nper,pv,[fv],[type]) integrated. (ii) Transparency and control. (iii) Accuracy and speed.
(c) PMT(rate,pv,nper,[type],[fv]) (iv) Scalability. (v) Reliability
(d) PMT(rate,nper,pv,[type],[fv])
12.Describe two basic methods of charging depreciation. (d) [Ctrl]+[Backspace]
Differentiate between both of them Ans: [Home]
Ans: Two basic methods of charging depreciation are: 14. What category of functions is used in this formula: =PMT
Straight line method: This method calculates fixed amount of (C10/12, C8, C9,1)
depreciation every year which is (a) Logical (b) Financial 1 (c) Payment (d) Statistical
calculated keeping in view the useful life of assets and its salvage Ans: Financial
value at the end of its useful life. 15. State any three types of Accounting Vouchers used for entry in
Written down value method: This method uses current book value Tally software.
of the asset for computing the Ans: Types of Accounting Vouchers (i) Contra Vouchers (ii)
amount of depreciation for the next period. It is also known as Payments Vouchers (iii) Receipt Vouchers
declining balance method. 16. State any three requirements which should be considered
Differences: before making an investing decision to choose between ‘Desktop
1. Equal amount of depreciation is charged in straight line method. database’ or ‘Server database’
Amount of depreciation Asn: The points to be considered before making investment in a
goes on decreasing every year in written down value method. database: (any three)
2. Depreciation is charged on original cost in straight line method. (i) What all data is to be stored in the database?
The amount is calculated (ii) Who will capture or modify the data, and how frequently the
on the book value every year. data will be modified?
3. In straight line method the value of asset can come to zero but in (iii) Who will be using the database, and what all tasks will they
written down value perform?
method this can never be zero. (iv) Will the database ( backend) be used by any other frontend
4. Generally rate of depreciation is low in case of straight line application?
method but it is kept high in (v) Will access to database be given over LAN/ Internet, and for
case of written down value method. what purposes?
5. It is suitable for assets in which repair charges are less and the (vi) What level of hardware and operating system is available?
possibility of obsolescence is 17. Which key combination collapses the ribbon?
less. It is suitable for the assets which become obsolete due to (A). [Ctrl]+[F1]
changes in technology. (B). [Ctrl]+[F3]
13. When navigating in a workbook, which command is used to (C). [Ctrl]+[F5]
move to the beginning of (D). [Ctrl]+[F7]
the current row? Ans: (A). [Ctrl]+[F1]
(a) [Ctrl]+[Home] 18. The CAS should be-
(b) [Page Up] (A) Simple and integrated, transparent, accurate, scalability,
(c) [Home] reliability.
(B) Complex, Accurate, Transparent, faster to work. (D) None of the above.
(C) Able to transform the manual accounting system to Ans: Hierarchical relationship between groups and components
computerised 23. Which mathematical operator is represented by an asterisk (*)?
accounting system. (A). Exponentiation
(D) None of the above. (B). Addition
Ans: (A) Simple and integrated, transparent, accurate, scalability, (C). Subtraction
reliability. (D). Multiplication
19. The components of Computerised Accounting System are: (A) Ans: Multiplication
Data, Report, Ledger, Hardware, Software. (B) Data, People, 24. What category of functions is used in this formula: =PMT
Procedure, Hardware, Software. (C) People, Procedure, Ledger, (C10/12,
Data, Chart of Accounts. (D) Data, Coding, Procedure, Rules, C8, C9,1)
Output. (A) Logical
Ans: (B) Data, People, Procedure, Hardware, Software. (B) Financial
20. Where are amounts owed by customers for credit purchases (C) Payment
found? (D) Statistical
(A) accounts receivable journal Ans: Financial
(B) general ledger 25 When Extend Selection is active, what is the keyboard shortcut
(C) sales journal for
(D) accounts receivable subsidiary ledger selecting all data up to and including the last row?
Ans: accounts receivable subsidiary ledger (A) [Ctrl]+[Down-arrow]
21. What is the activity sequence of the basic information (B) [Ctrl]+[Home]
processing (C) [Ctrl]+[Shift]
model? (D) [Ctrl]+ [Up Arrow]
(A) Organise data, process data, and collect data Ans: [Ctrl]+[Shift]
(B) Collect data, organise and process data, and communicate 26 Which formulae would result in TRUE if C4 is less than 10 and
information D4 is
(C) Process data, organise data, and collect data less than 100?
(D) Organise data, collect data, and communicate information (A) =AND(C4>10, D4>10)
Ans: Collect data, organise and process data, and communicate (B) =AND(C4>10, C4<100).
information (C) =AND(C4>10, D4<10).
22. Codification of Accounts required for the purpose of: (D) =AND (C4<10, D4,100)
(A) Hierarchical relationship between groups and components Ans: =AND (C4<10, D4,100)
(B) Data processing faster and preparing of final accounts 27 Where is the address of the active cell displayed?
(C) Keeping data and information secured (A) Row heading
(B) Status bar Answer: Computerised Accounting system takes (i) Accounting
(C) Name Box transactions as inputs which are processed through (ii) Accounting
(D) Formula bar software to generate reports.
Ans: Name Box 33. A cell reference that holds either row or column constant when
28 Which of the following arguments in a financial function the formula or function is copied to another location is known as :
represents (A) Absolute cell reference
the total number of payments? (B) Ranges
(A) FV (C) Relative cell reference
(B) PV (D) Mixed cell reference
(C) Nper Ans: Absolute cell reference.
(D) Rate 34. The data is classified for creating groups of accounts in the
Ans: Nper heads of :
29 Which function results can be displayed in Auto Calculate? (A) Assets, Liabilities and Capital
(A). SUM and AVERAGE (B) Assets, Owners’ equity, Revenue and Expenses
(B). MAX and LOOK (C) Assets, Capital, Liabilities, Revenue and Expenses
(C). LABEL and AVERAGE (D) Capital, Revenue and Expenses
(D). MIN and BLANK Ans: Assets, Capital, Liabilities, Revenue and Expenses
Ans: SUM and AVERAGE 35. A1 : E2 in Excel refers to :
30.When navigating in a workbook, which command is used to (A) Column on Excel sheet
move to (B) Row on Excel sheet
the beginning of the current row? (C) Column between start and end points of Excel sheet
A. [Ctrl]+[Home] (D) Alphabets between A to E on Excel sheet.
B. [Page Up] ans: Column between start and end points of Excel sheet.
C. [Home] Name the data element in accounting transaction.
D. [Ctrl]+[Backspace] Ans: : A data element is the smallest named unit of data in the
Ans: [Home] information system. In accounting, a transaction consists of four
31. What is meant by ‘Primary Key’? data elements, such as name of the account, accounting code, date
Primary key is a key in the relational database that is unique for of transaction and amount.
each record. It consists of minimum possible one or more than one Which of the following is not a limitation of Computerised
attributes of a table such as telephone number with area code. Accounting system?
32. Computerised Accounting system takes (i) __________ as (A) Data may be lost or corrupted due to power interruptions.
inputs which are processed through (ii) ___________to generate (B) Data is prone to hacking.
reports. (C) Data is not made available to everybody.
(D) Unprogrammed and un-specified reports cannot be generated.
Ans: Data is not made available to everybody. These are the codes in which code numbers and/or letters are
Explain ‘Null Values’ and ‘Complex Attributes’. assigned in a consecutive order. These codes are
Ans: : Null Values: applied primarily to source documents such as cheques, invoices
Absence of data item is represented by a special value called null etc. This facilitates document searches. This
value. There are three situations which may process enables either identification of missing codes (numbers)
require the use of null value. relating to a particular document or to trace a
 When particular attribute does not apply to an entity. relevant document on the basis of the codes.
 Value of an attribute is unknown although it exist. Mnemonic codes
 Unknown because it does not exist. These codes consist of alphabets or abbreviations as symbols to
Complex Attributes : codify a piece of information. SJ for sales journal,
These are composite and multivalue attributes which may be HQ for Headquarters are examples of mnemonic codes.
nested (or grouped) to constitute complex ones. What is meant by a graph? Explain any three of its advantages.
The parenthesis { } are used for showing grouping of components Answer: A Graph is a pictorial presentation of data which has at
of composite attributes. The braces { } are used least two dimensional relationships.
for showing the multivalue attributes. Three advantages:
Explain any three types of vouchers used for entry in Tally 1. Graphs help to explore
software with the help of examples. 2. Graphs help to present
Contra voucher: Used for fund transfer between cash and Bank A/c 3. Graphs help to convince
only. This voucher is used if cash is Identify the error that appears when there are invalid numeric
withdrawn from Bank for office or deposited in the Bank from values in a formula or function. How can this error
office. be rectified? Explain.
(ii) Receipt Voucher: All the inflow of money is recorded through The error is #NUM! Error. The steps to correct it are:
receipt voucher. Such receipts may be 1. Optionally, click the cell that displays the error, click the button
towards any income such as receipts from Debtors, loan/advance that appears and then click show
taken or refund of loan/advance etc. calculation steps.
(iii) Payment Voucher: All outflow of money is recorded through 2. Review the following causes and solutions:
payment voucher such payments may be  Using an unacceptable argument in the function that requires
towards any purchases, Expenses, due to creditors, loan/advance anumeric argument.
etc.  Make sure that the arguments used in the function are numbers.
(iv) Journal Voucher: It is an adjustment voucher, normally used  Using a worksheet function that iterates, such as IRR or RATE,
for non-cash transactions like adjustment and the function cannot find the
between ledgers. result.
. Explain ‘Sequential’ and ‘Mnemonic’ codes.  Use a different starting value for the worksheet function.
Sequential codes
3. Then click the Microsoft button >Excel option and then click the
formulas category.
List any two attributes of information to be stored in Payroll data
base.
Attributes of information to be stored in Payroll data base: (Any
two) Ans :- a) – ii; b) - i); c) – iii)
(i) Name What is the activity sequence of the basic information processing
(ii) ID mode.
(iii) Designation The activity sequence of the basic information mode is collect
(iv) Location data, organize and process it and Then communicate the
(v) Basic Pay information extracted.
Which of the following is not an advantage of computerised Differentiate between Generic software and Specific Software on
accounting system basis of cost of installation and maintenance.
a) Efficient record keeping Cost of installation and maintenance is generally low with Generic
b) Ensures effective control over the system. Software and is relatively high with Specific software.
c) Generation of reports and information in fixed format Which of the following situations may not require the use of null
d) Economy in the processing of accounting data value
Answer :- c) Generation of reports and information in fixed format a) When a particular attribute does not apply to an entity.
Arrange the following steps of constructing Bank Reconciliation b) Value of an attribute is unknown, although it exist;
Statements in Tally in c) Unknown because it does not exist.
chronological sequence d) Multi value attributes may be nested (or grouped) to constitute
a) Bringing up the monthly summary of Bank Book. Bringing the complex ones.
cursor to the first month Ans: d)
and pressing enter. Explain adjusting entries.
b) The display becomes Edit Screen in Reconciliation mode. The Ans: The Adjusting entry is recorded to relate the figures to the
primary components are trading period. Suppose, premises have been sublet on March 31,
A column for the ‘Bankers Date’ Amounts not reflected in banks and three months’ rent, has been received in advance amounting to
and balance as per Rs. 12000. While preparing accounts up to 31st March, one should
banks take into account only one month’s rent for preparing the profit
c) This Brings up the vouchers for the month. Since this is a bank and loss account (accounting period concept); the rest two month’s
account, an additional button F5: reconcile will be visible on the rent, already received is for the next year and will be credited to
right Press F5 profit and loss account next year. The adjusting entry will be: Rent
Ans: a); c); b) Account Dr To Advance Rent Account Rent Received in advance
Account is a ‘Liability’ and is shown in the balance sheet.
Explain ‘Transparency control’ and ‘Scalability’ as features of Guides with help of using visuals. iii) Helps in understanding
Computerized Accounting System. distribution and variation of critical data.
Ans: Transparency and control CAS provides sufficient time to Which function is used to compute loan repayment schedule?
plan, increases data accessibility and enhances user satisfaction. The function PMT is used to compute the loan repayment
With computerised accounting, the organisation will have greater schedule.
transparency for day to day business operations and access to the What is data validation?
vital information. Scalability CAS enables in changing the volume Data validation is a feature to define restrictions on type of data
of data processing in tune with the change in the size of the entered into a cell. We can configure data validation rules for cells
business. The software can be used for any size the business and data that will not allow users to enter invalid data.
type of the organisation. Differentiate between desktop database and server database.
Name and explain the function which returns the future value of an 1. Application : Desktop database can be used by a single user
investment which has constant payment and interest. server data base can be used by many users at the same time.
Ans: PMT :- The PMT function calculates the periodic payment 2. Additional provision for reliability: Desktop database doesn't
for an annuity assuming equal payments and a constant rate of present this but these provisions are available in server based
interest. The syntax of PMT function is as follows: = PMT (rate, database.
nper, pv, [fv], [type]) where Rate is the interest rate per period, 3. Cost: Desktop database tend to cost less than the server
Nper is the number of periods, Pv is the present value or the database.
amount the future payments are worth presently, future value or 4. Flexibility regarding the performance in front ends applications:
cash balance that after the last payment is made (a future value of It is not present in desktop database but server database provide
zero when we omit this optional argument) Type is the value 0 for this flexibility.
payments made at the end of the period or the value 1 for payments 5. Suitability: Desktop database are suitable for small/home
made at the beginning of the period. The PMT function is often offices and server database are more suitable for large business
used to calculate the payment for mortgage loans that have a fixed organizations.
rate of interest Explain the steps in installation of computerised accounting
What is meant by conditional formatting? Give its two uses and system.
three benefits? For installation of computerised accounting system, the following
Ans: A format change, such as background cell shading or font steps are required:
colour that is applied to a cell when a specified condition for the 1. Insert CD in the system .
data in the cell is true. Conditional formatting is often applied to 2. After inserting CD select the option in following steps ;
worksheets to find: a. Data that is above or below a certain value. a. Select any (C: or E: or D: ) from My Computer icon on the
Duplicate data values. b. Cells containing specific text. Data that is desktop. Double click on install.exe
above or below average. c. Data that falls in the top ten or bottom OR
ten values. Benefits of using conditional formatting: i) Helps in b. Select start > run > type the file name E:\install.exe
answering questions which are important for taking decisions. ii)
3. After the above process the default directories of application , 2. Data may be lost or corrupted due to power interruptions.
data and Configuration opens in 3. Data are prone to hacking.
a window. In case, the user wants to change the default directories 4. Un-programmed and un-specified reports cannot be generated.
then it can be changed by Explain any six features of Tally 9.0 software.
providing the desired drive and file name/directory name for Features of Tally 9.0 software are (any six)
example : D:\software name, i) Gateway - Gateway is the starting of Tally. In other words we
instead of C :\accounting software (default name) can say that gateway is the gate to enter in Tally.
4. Click on install and installation process begins, accounting ii) Company creation - Before inputting accounting transactions,
software displays the Message of first we create a company through company creation.
successful installation, then this CD can be removed. iii) Chat of accounts - Chart of accounts is the segmentation of
Give any four features of computerized accounting system. Liabilities and Assets of Balance Sheet and preparation of Profit
Following are the salient features of computerized accounting and Loss account.
system : (any four) iv) Account master - Account master basically used for account
1. It is designed to automate, integrate and simplify all the business group and ledger.
operations, such as sales,finance, purchase, inventory and v) Voucher entry - After creation of account user inputs accounting
manufacturing. CAS is integrated to provide accurate, up-todate voucher entry in the book of accounts. In computerized accounting
business information rapidly in a cost effective manner. system all entries are inputted through a voucher entry.
2. It provides sufficient time to plan, increases data accessibility vi) Trial Balance - Trial balance is the statement of different
and enhances user satisfaction.With computerised accounting, the closing balances of ledger.
organisation will have greater transparency for day-to-day vii) Balance Sheet - The balance sheet is constructed by simply
business operations and access to the vital information. posting all items of liabilities and assets for the finalization of
3 .It provides user -definable templates (data entry screens or journal entry.
forms) for fast, accurate data entry of the transactions. It also helps
in generalizing desired documents and reports.
4. It enables in changing the volume of data processing in tune
with the change in the size of the business. The software can be
used for any size of the business and type of the organisation.
5. It makes sure that the generalised critical financial information
is accurate, controlled and secured.
Give any four limitations of computerized accounting system.
Limitations of Computerised accounting system :
Following are the limitation of CAS software:
1. Faster obsolescence of technology necessitates investment in
shorter period of time.