Question

Illustrate the data processing cycle and explain each phase in relation to an accounting information system with appropriate example at each stage. DATA -(INPUT)- Processing (storage)-Output- Information

Answer 1

Answer:-

• The bookkeeping cycle is the preparing of the bookkeeping occasions of an organisation.
• Generally the information handling of bookkeeping in any association is finished with the assistance of modernized frameworks for understanding and acquiring information.
• The data of these sorts are accessible as diagrams,reports and designs.

The diverse stages in connection to a bookkeeping cycle is depicted as beneath:

Business Transaction :-

Every cycle where there is a financial or non money related advantage is included is the main point to begin the cycle of bookkeeping however it wont be named an exchange.

Recording of Journal Entries :-

• When a diary passage is done in a bookkeeping cycle it must be done in a sequential request.
• Modernized framework helps in making those passages in a sequential request and furthermore keeps up those records.

Ledgers:-

• After the diary is readied the comparing postings are done in the general record accounts from where the Trial Balance is prepared.
• So these passages when entered through automated framework have a clear day and age of review after which they can't be altered.
• Only the administrator folks engaged with the framework are approved to roll out improvements which happen after a specific bookkeeping period.

Trial Balance:-

• After the precise chronicle of the diary passages are done through the electronic framework it is recorded in the general record keeping in mind the end goal to empower the association to set up the Trial Balance.
• So the Trial Balance is the aggregate of the considerable number of records adjusts posted from the general records.
• Modernized framework helps the association which naturally counts the charge and credit sections posted from the general record.

Creation of Financial Statements:-

• ​​After the readiness of the Trial Balance the monetary explanations are readied like the Balance Sheet,Income Statement and the income .
• Computerized framework helps help with keeping up the precision of the numbers and guarantee that no progressions happens without the best possible approval from the administrator group.

Closing Entries:-

• Once the period is finished the end passages are posted.
• So the brief adjusts are lessened to zero and equalizations toward the end will shape the opening adjusts of the following time frame.