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Principles of Accounts DATA PROCESSING

The document outlines the concepts of data processing, including definitions of data, data capture, and the data processing cycle. It contrasts manual data processing, which is simple but time-consuming and prone to errors, with electronic data processing, which utilizes computers to enhance productivity and efficiency. Additionally, it discusses the functions of computers and the use of accounting software to streamline financial management.

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3 views

Principles of Accounts DATA PROCESSING

The document outlines the concepts of data processing, including definitions of data, data capture, and the data processing cycle. It contrasts manual data processing, which is simple but time-consuming and prone to errors, with electronic data processing, which utilizes computers to enhance productivity and efficiency. Additionally, it discusses the functions of computers and the use of accounting software to streamline financial management.

Uploaded by

panashekamhunga910
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DATA PROCESSING

Data – raw facts, figures collected to be sorted.


Data processing – process of converting and manipulating
raw data into meaningful and usable information.
Data capture – process of obtaining data in computer
sensible form at the point of its origin.
Data collection – involves the initial stages of gathering of
the data needed for processing from source documents.
Data processing cycle – sequential order that is followed
during the manipulation of accounting and into
meaningful and usable information.
Manual data processing – simple and easier record
keeping system which is paper based. No machine or tool
is required.
Electronic data processing – use of an electronic device
called computer to capture and keep information.

Computer – electronic device that is programmed to


accepts data input fed, manipulate and processes data,
produce and stores the output in various form

Data processing methods


1.Manual data processing methods
On manual data processing, much of the work is done
manually with a pen and a paper. For example, in offices,
incoming tasks are stacked in the trays.
The processing of each task involves the use of the brain.
The processed information from the out tray is then
distributed to the people who need it or stored in a file
cabinet or cupboards.
This means that more space is needed to store the large
files for the future purposes. Huge files of processed data
can be seen in offices.
Advantages of manual methods
• The system is easy and simple to set up.
• Less risk of data loss since the files are free from virus
corruptions.
• The process is very easy and simplified.
• It is easy to trace and locate errors.
Disadvantages of manual methods
• Time consuming and tiresome.
• High chances of error.
• Requires a lot of labour.
2. Electronic methods.
Electronic methods of data processing make use of an
electronic device called a computer. A computer is an
electronic device that is programmed to accept data input
fed, manipulate and process data, produce and stores the
output in various forms. Electronic data processing is also
called computerised data processing.
Electronic data processing systems are designed to
increase productivity, efficiency and improve the quality
of work. Similar to a production process, electronic data
processing follows a cycle where an input, that is raw
data, is fed to a process that is computer system and
software to produce output information and insight
(finished product).
Programmed and automated computer systems are
employed to carry out a series of operations on the data
to present, interpret or obtain information. The process
includes activities like data entry, summary, calculation
and storage. A useful and informative output of
accounting information is presented in various
appropriate forms such as diagrams, reports, graphics and
tables.

Physical components of a computer are C.P.U, monitor,


mouse and keyboard
Functions of a computer
Just like the pen, the keyboard, mouse, scanner, barcode
reader, joystick and screen (in case of touch screens) are
used to enter or feed the data into the computer. Data
processing that is the manipulation of raw data into
meaningful information is done by the central processing
unit (CPU). The CPU is labeled unit system.
The processed data or meaningful information called
output is given out by devices such as the monitor, also
known as the screen or visual display unit, printer and
speaker. The information can be stored on the computer
or externally on storage devices such as hard drive disk,
compact disk (CD), USB Flash Drive, Cloud
Storage and tape.
Accounting software and packages used in electronic data
processing
With the advances in technology, the electronic data
processing method has improved. Businesses of all sizes
are now able to use financial management softwares and
other accounting packages to streamline accounting
processes and reduce human error. Quite a number of
different types of accounting packages available today can
accomplish a variety of tasks, from data entry to
reporting.
They can be integrated with other information and
technology systems for enhanced functionality. Pastel and
Excel are some of them. QuickBooks is one of the world’s
leading accounting packages helping small and medium-
sized businesses manage their financial matter much
easier and better.

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