Distinguish between Manual Accounting System and Computerised Accounting System.

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A Manual Accounting System and a Computerised Accounting System both rest on the same underlying principles of double-entry bookkeeping, but they differ significantly in practice, on the following main points:

| Basis | Manual Accounting | Computerised Accounting |
|---|---|---|
| Recording & posting | Written by hand into a journal, then posted by hand into every affected ledger account. | Entered once through a voucher; posted automatically to every affected account by the software. |
| Speed | Slow, especially as transaction volume grows. | Fast, regardless of volume. |
| Accuracy | Prone to casting and posting errors. | Free of arithmetic/posting errors once data is entered correctly. |
| Reports | Prepared afresh, by hand, whenever needed. | Generated instantly, as often as required. |
| Storage & retrieval | Bulky physical registers; slow to search. | Compact digital storage; searchable in seconds. |
| Cost pattern | Low initial cost, rising clerical cost as volume grows. | Higher initial cost, lower cost per transaction at high volume. |
| Real-time information | Not available between balancing dates. | Always available, up to the last entry made. |

In short, computerisation trades a higher upfront investment in hardware, software and training for large ongoing gains in speed, accuracy and the availability of up-to-date information — gains that become increasingly worthwhile as a business's transaction volume grows.

> [!ANSWER]
> The two systems apply the same accounting principles, but a manual system relies on hand recording, posting and report preparation (slower, more error-prone, low cost, no real-time information), while a computerised system automates posting and reporting through software (faster, more accurate, higher upfront cost, real-time information available at any time).

Q.Distinguish between Manual Accounting System and Computerised Accounting System.

Concept understanding — Manual Accounting vs Computerised Accounting

Basis	Manual Accounting	Computerised Accounting
Recording & posting	Written by hand into a journal, then posted by hand into every affected ledger account.	Entered once through a voucher; posted automatically to every affected account by the software.
Speed	Slow, especially as transaction volume grows.	Fast, regardless of volume.
Accuracy	Prone to casting and posting errors.	Free of arithmetic/posting errors once data is entered correctly.
Reports	Prepared afresh, by hand, whenever needed.	Generated instantly, as often as required.
Storage & retrieval	Bulky physical registers; slow to search.	Compact digital storage; searchable in seconds.
Cost pattern	Low initial cost, rising clerical cost as volume grows.	Higher initial cost, lower cost per transaction at high volume.
Real-time information	Not available between balancing dates.	Always available, up to the last entry made.

Q.Distinguish between Manual Accounting System and Computerised Accounting System.

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