Professional Documents
Culture Documents
Accounting Information Systems
Accounting Information Systems
Systems
Chapter 7
Objective 1
Describe an effective
accounting
information system.
Basic Features
Control
Compatibility
Flexibility
Cost/benefit relationship
Basic Features
Internal controls are the methods and
procedures used to authorize transactions
and safeguard assets.
Compatibility means that the system works
smoothly with operations, personnel, and
the organizational structure.
Basic Features
Flexibility relates to the system’s ability to
accommodate changes in the organization.
A cost/benefit relationship indicates that the
cost of controls do not exceed their value to
the organization.
Computerized Accounting
System
Hardware
Software
Company
Personnel
Computerized Accounting
System
Hardware is the electronic equipment that
makes up a computer system.
Software is a system of instructions that
drive the computer to perform various
functions.
Properly trained personnel are critical to the
successful operations of the system.
Objective 2
Understand both
computerized and manual
accounting systems.
Three Stages of
Data Processing
(Source documents)
Input
Processing
(Financial
Output statements)
Computerized
Accounting System
ACCOUNTING RECORDS
PERSONNEL Journals,
input transactions, request Ledgers,
reports, protect records Other records
posted accessed for
reports
HARDWARE
printed to
INPUT entered, paper, OUTPUT
edited SOFTWARE screen
DATA PROCESSING REPORTS
Designing an Accounting System
Design of the accounting system begins
with the chart of accounts.
The chart of accounts lists all accounts and
their account number in the ledger.
Menu-Driven Accounting
System
Computer systems are organized by
function or task.
Computer systems usually have a choice
of processing options on a “menu.”
Menu-Driven Accounting
System
General Receivables Payables Inventory Payroll Reports Utilities
Posting COMPUTERIZED
Account Maintenance ACCOUNTING
SYSTEM
Closing
2 Revenues 100,000
3 Expenses 60,000
5
Cursor is on cell B4.
Objective 4
General Ledger
Account: Accounts Receivable Account Number: 120
Date Description Post Ref Debit Credit
Balance Jan. 2 Sales SJ5 2,200
2,200
Using the Sales Journal
Sales Journal Page 5
Invoice Account Account Post
Date Number Debited Number Ref. Amount
Jan. 2 203 XYZ Co. 120-111 900.00
TOTAL 2,200.00
120/410
General Ledger
Account: Credit Sales Account Number: 410
Date Description Post Ref Debit Credit
Balance Jan. 2 Sales SJ5
2,200 2,200
Subsidiary Ledger
A subsidiary ledger is often used to provide
details on individual balances of...
– customers (accounts receivable) and...
– suppliers (accounts payable).
A Control Account
What is a control account?
It is the general ledger account.
It equals the sum of the individual account
balances in a subsidiary ledger.
Cash Receipts Journal — Page 6
Debits Credits
Sales Accounts Sales
Date Cash Discounts Receivable Revenue
Jan. 2 200 200
11 882 18 900
30 800 800
311,882 18 900 1,000
(101)
(420) (112) (410)
Accounts Receivable