Computerized Accounting – Ledgers, Vouchers and Reports

1. Masters

Masters contain relatively permanent information such as organisation details, ledger names, groups, inventory items and tax/configuration information where applicable.

2. Vouchers

Transactions are entered through appropriate voucher types. The user must identify the economic event first and then select the correct voucher/accounting treatment.

3. Ledger Reports

Ledger reports summarise transactions posted to an individual account. They can be filtered by period and other criteria supported by the software.

4. Trial Balance

The trial balance provides a summary of debit and credit balances and is used as a checking and reporting stage. A balanced trial balance does not by itself prove that every accounting error is absent.

5. Financial Reports

Computerized systems can generate reports such as profit and loss, balance sheet, cash/bank summaries and ledger statements depending on the software configuration.

🖼️ Data Flow

Practice MCQs

1. Masters store reusable accounting information. Answer: Correct.
2. A voucher records a transaction/event in the accounting system. Answer: Correct.
3. A trial balance is useful for checking debit-credit agreement. Answer: Correct.
4. A balanced trial balance guarantees absence of all accounting errors. Answer: Incorrect.
5. Reports depend on the accuracy of data and configuration. Answer: Correct.