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1. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Accounting in Computerized Environment
Module D: Final Accounts
Accounting in Computerized Environment

2. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
JAIIB – SUPER NOTES
Accounting & Finance for Bankers: Computerized Accounting

3. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Contents
Coverage:
1. Computerised Accounting
2. Need and Evolution
3. Core Banking

4. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
COMPUTERISED ACCOUNTING
1.

5. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Computerised Accounting - Meaning
• Data is captured in the form of Accounting Entries
• These are used to prepare Financial Statements which are
based on Accounting Standards
• This data and the statements are further utilized to prepare
various Financial reports

6. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Advantages & Disadvantages
Features:
• Very high speed
• Highly accurate - Error
free
• Various Informative
Reports
• Economical
• Single Stand Alone Unit
or Multiple Users
Advantages
• Accuracy
• Speed
• Low Cost in long run
• Generation of Various
Reports
• Automatic formation of
all subsidiary books and
statements
• Multiple printouts
Disadvantages:
• Requirement of special
programs and
professionals
• Qualified Staff required
for Operations
• Costly computer
peripherals and
stationery
• Data theft is easy due to
easier access
• Regular Back-Up
Required
• Threat due to computer
viruses

7. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Computerised Accounting vs. Manual Accounting
Computerized Accounting
Difficult to find out the trail of events
Modification of original records is difficult
to trace
Multiple Reports can easily be generated
Manual Accounting
Easier to assess trail of events
Modification is relatively easy to find out
Generation of multiple reports is Time
and Resource intensive

8. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
NEED AND EVOLUTION
2.

9. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Functions of Accounting Software
Maintenance
of Statutory
Books
Report
Generation
Foreign
Currency
Conversion
Valuation
Maintenance
of Accounts
Planning
Various Software Tools: Tally, Accounting software, Bank 2000, B@nk-24CBS,
A.U.D.I.T.O.R. & A.U.D.I.T.I.M.E., MEFCOMP Accounting Software for
Professionals, QUICK FA are available

10. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Scope and Experiences of Computerisation in Banking
Computerised
Operations
Accounting
Deposits
Remittances
Standing
Instructions
Automated
Banking
Computerised
Accounting
Lending
Cheque
Clearance
Centralised
Banking

11. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Need and Evolution of Centralised Infrastructure
Decentralised
Banking
Multi-Channel
Banking
Cost Benefits
of Data
Centres
Unified IP
Network
Core Banking

12. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
CORE BANKING
3.

13. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Core Banking - Components and Benefits
Components
CB Financial
Institution
Infrastructur
e
CB Product
Build
CB Customer
Management
and
Customer
Overview
CB Account
Administrati
on
CB Payments
CB
Management
Information

14. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Accounting Systems
• The computerised Accounting system may be on a single
stand alone machine or a multi-user system i.e. WAN or LAN.

15. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
• Statutory Books, Reports, Connecting branches, converting
foreign currency,
• Giving all figures including profits : branch wise area wise.
Closing stock values.
• Comp. Banking Operations, Accepting Deposits, lending,
Remittances, Clearing of cheques, Standing Instructions,
Centralized Banking, Automated Banking.
• EOD & BOD

16. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
System Layers
System
Layers
Presenta
tion
Layers
Delivery
Layers
Interface
Applicati
on
Layers
Databas
e Layers
Inter
face to
databas
e using
appropri
ate call
levels &
languag
e

17. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Transaction Processing
• Primary update for Customers transactions
• Secondary updates for transactions like salary (tape or disc)
Batch processing (interest posting)
• Online Processing : Account & Customer creation, Financial
transactions & Enquiries Maintenance

18. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Balancing Account
• Balancing Account is used to route the transactions. In batch
process. There one Dr. 10000 to be credited to 10 different
accounts : Dr. Customer A/c Rs.10000& Cr. Balancing
Rs.10000.
• Thereafter Dr. Balancing A/c 10 times @ Rs.1000.

19. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Information Security
• Access Control Systems, Operations, E-mail, Application &
System Development, Business Continuity & Disaster,
Communication & network, Physical Security Control over
Modem, Password secrecy

20. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
• Computer language: cobol, foxpro, unix …etc
• Analog computers : scientific and mech. Field
• Digital computers: computerized accounting
• Data : fact
• Record : group of data
• Data file: data records

21. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
Do you have any questions or queries or some feedback to give?
Just mark an email to super.msahluwalia@yahoo.com

22. JAIIB – Super-Notes© M S Ahluwalia Sirf Business
For more Super-Notes: Click Here
M S Ahluwalia, amongst other things, is a visual artist, blogger,
blog designer and of course an MBA and Banker from New
Delhi, India.
To know more about him you may visit his blog-site: Estudiante De La Vida