Q.Distinguish between manual accounting and computerised accounting on the basis of recording, posting and speed.

Manual and computerised accounting differ mainly in how the mechanical work of posting and balancing is carried out, not in the accounting rules applied.

This difference in speed grows sharply as the number of transactions increases, which is why larger businesses lean towards computerised systems.

Manual accounting and computerised accounting apply the same underlying accounting principles, but differ clearly on the three points asked:

Recording. In manual accounting, each transaction is written by hand into a journal or a relevant subsidiary book, requiring careful handwriting and manual checking. In computerised accounting, the same transaction is keyed once into a voucher or entry screen in the accounting software.

Posting. Manually, posting to the ledger is a separate step carried out by hand for every account the transaction affects, and must be repeated and cross-checked for accuracy. In a computerised system, posting to all affected ledger accounts happens automatically the instant the voucher is saved — the software applies the double-entry rule itself, without a further manual step.

Speed. Manual accounting is comparatively slow, particularly as the number of transactions grows, since every step depends on the pace and accuracy of a human bookkeeper. Computerised accounting is very fast even for a very large number of transactions, since the CPU carries out the required processing within seconds, and reports such as a trial balance can be produced on demand rather than only after a lengthy manual preparation.

In short, computerised accounting keeps the same recording logic as manual accounting but automates the posting step and dramatically increases the speed at which the whole process can be completed.