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The trial balance

Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step

towards the preparation of financial statements. It is usually prepared at the end of an accounting

period to assist in the drafting of financial statements. Ledger balances are segregated into debit

balances and credit balances. Asset and expense accounts appear on the debit side of the trial

balance whereas liabilities, capital and income accounts appear on the credit side. (htt26)

Computerized accounting systems- role of computers, application and accounting software’s in

the accounting process, benefits and challenges of operating computerized accounting systems

The main advantages of using a computer accounting program are as follows:

(i) Faster Processing - Computers require far less time than human beings in performing a particular

task. Therefore, accounting data is processed faster using a computerized accounting system.

(ii) Accurate Information - There is less space for error because only one account entry is needed

for each transaction unlike repeated posting of the same accounting data in manual system.

(iii) Reliability - Computer systems are immune to boredom, tiredness or fatigue. Therefore, these

can perform repetitive functions effectively and are highly reliable as compared to human beings.

(iv) Easy Availability of Information - The data can be made available to different users at the same

time. This is called data sharing.

(v) Up-to-date Information - Account balances will always be up to date since the records are

automatically updated as and when accounting data is entered or stored.

(vi) Efficiency - The computer based accounting system ensures better use of time and resources.

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