Important Questions for CBSE Class 11 Accountancy Chapter 12 – Applications Of Computer In Accounting

Important Questions Class 11 Accountancy Chapter 12 Applications of Computers in Accounting 

In  current times, computers have a worldwide presence. They have numerous benefits in different fields and are also gaining a lot of popularity in the field of Accounting. Chapter 12 in Class 11 Accountancy deals with the elements and capabilities of a computerised accounting system, describes the automation of the accounting process, helps to learn about various reports generated from accounting data and to know about different Management Information System(MIS) reports and their uses. To understand how accounting has changed in the current scenario, students need to have a solid understanding of Chapter 12. The Important Questions Class 11 Accountancy Chapter 12 provided by Extramarks can be a helpful aid in learning the core concepts of the chapter.

At Extramarks, we understand the importance of practising questions for Accountancy. Subject experts with years of experience in Accountancy collate the Important Questions Class 11 Accountancy Chapter 12 from various sources such as NCERT books, reference books, CBSE past years’ papers, etc. Students can refer to them and prepare well for the coming examinations. Extramarks is a trusted study companion for lakhs of students countrywide, helping them to study, revise and prepare well in the area of Accountancy. The questions and solutions lists are made on account of any changes in the CBSE syllabus or guidelines to provide the utmost relevant content.

Apart from providing Important Questions Class 11 Accountancy Chapter 12, students can also access other resources such as NCERT books, NCERT solutions, CBSE sample papers, reference books, CBSE past years’ papers, etc., to have a holistic study session for their exam preparation.

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CBSE Class 11 Accountancy Important Questions
Sr No. Chapters Chapters Name
1 Chapter 1 Introduction to Accounting
2 Chapter 2 Theory Base of Accounting
3 Chapter 3 Recording of Transactions – 1
4 Chapter 4 Recording of Transactions II (Financial Accounting – I)
5 Chapter 5 Bank Reconciliation Statement
6 Chapter 6 Trial Balance and Rectification of Errors
7 Chapter 7 Depreciation, Provisions & Reserves
8 Chapter 8 Bill of Exchange
9 Chapter 9 Financial Statements – 1
10 Chapter 10 Financial Statements 2
11 Chapter 11 Accounts from Incomplete Records
12 Chapter 12 Applications of Computers in Accounting
13 Chapter 13 Computerised Accounting System

Computers in Accounting Class 11 Important Questions with Solutions

Chapter 12 is a crucial chapter for Class 11 Accountancy; it is also a reasonably easy chapter that students can grasp pretty quickly. Going through the Class 11 Accountancy Chapter 12 Important Questions will help the students quickly go through some of the chapter’s important concepts and also help them understand how questions can appear in their examinations.

Here is a list of Important Questions Class 11 Accountancy Chapter 12 for students to practise:

Question 1. What are the types of a computerised accounting systems?

  • Ready to use Software
  • Customised Software
  • Tailor-made Software
  • All of the above

Answer 1: d) All of the above. A computerised accounting system is an accounting information system that processes financial transactions and events following Generally Accepted Accounting Principles (GAAP) to provide reports that meet user needs. The options mentioned above are different computerised accounting systems organisations use per their requirements and budgets.

Question 2. Mention two uses of an electronic spreadsheet.

Answer 2: Two uses of an electronic spreadsheet are:

  • For payroll accounting
  • For recalculation if some values change

Question 3. Fill in the blank.

  • __________ is a Language syntax checked by software.
  • __________ is an example of management responsibility.
  • _____________collect, Record, process data for business decision making. 
  • ______________ is more accurate than manual accounting system.

Answer 3: 

  1. i) Language processor
  2. Cash position

iii. Management information system

  1. Computerised accounting system

Question 4. Ram wants to install a computerised accounting system, but his budget is low. Which software should he opt for?

  • Ready to use Software
  • Customised Software
  • Tailor-made Software
  • He can buy any of the above, and all cost the same

Answer 4: a) Ready to use software. As these are ready to use and relatively easier to operate with no customisations, they are cheaper.

Question 5. What is Accounting Information System?

Answer 5: An information system gathers, stores, and processes accounting and financial data so internal users can exchange information with creditors and shareholders. Based on accounting principles, it uses a computer-based way to capture accounting data. The data is stored in a way that allows internal management to access it for decision-making. It may include simple ledger entries and sometimes more complicated ones like cost and financial reports.

Question 6. What are the roles of computers in accounting? 

Answer 6: The following are the roles of computers in accounting:

  • Recording Transactions:

Computers help to keep track of daily transactions by either manually entering them or using a code or QR code scanner. Additionally, it gives each account a unique code, so it may only become more well-known.

  • Preparation of Accounting Documents:

A computer helps with bills, cash memos, sales invoices, consumer vouchers, and other documents. The manual technique of recording accounting transactions necessitates keeping account books such as three journals, a cash book, special purpose books, and a ledger, among others.

  • Making a Budget:

It automatically enters data into the ledger and creates the trial balance, profit and loss account, and record.

  • Storing Data:

It stores information in a knowledge base management system for later use. Due to computerised tools for accounting, it is now much simpler to maintain track of accounting records.

Question 7. Name three components of a Transaction Processing System.

Answer 7: The three components of a Transaction Processing System are as follows:

  1. Inputs: Source papers, such as invoices and purchase orders, serve as the system’s inputs.
  2. Storing data: The system stores the input data on a portable hard disc storage device.
  3. Output: The saved data can be retrieved and used for research as and when necessary.

Question 8. Explain briefly any four advantages of a computerised accounting system over a manual system.

Answer 8: The benefits of a computerised accounting system over a manual system are as follows:

  • Accuracy: 

The precision of a computer cannot be questioned if a specified software is provided for a specific purpose. The results produced by such software will always be accurate, whereas results produced by humans may vary owing to negligence or other factors.

  • Updation of Records:

In contrast to manual accounts, where each record may need to be modified one at a time, all relevant documents on a computer are automatically changed after any information is entered.

  • Reliability:

The reliability of work produced by computers is relatively high. While human work may be affected by the volume of work, there are  fewer chances of that occurring with computerised accounting systems.

  • Speed: 

A computer’s accounting speed is much faster than a human’s.

Question 9. ‘An accounting report is an essential report that must fulfil specific basic criteria. Explain? List the various types of accounting reports.

Answer 9: Information is created when data is changed and processed so that the user quickly understands it. To produce a report, this information is further refined. The management level at which the report is submitted affects both the content and the report’s design.

Based on the reports created, decisions are made. An accounting report must meet the following requirements:

  1. Accurate
  2. Relevant
  3. Complete
  4. Timely
  5. Summarised

The types of reports are mentioned below:

  • Demand Reports:

Demand report preparation takes place at the request of the management’s needs and requests. An example of a demand report is Money Report.

  • Summary Reports:

Summary reports provide a summarisation of the activities happening in the organisation. An example of a summary report is the profit and loss account.

  • Customer/Supplier Reports:

Customer/Supplier reports give detailed information about various suppliers to the business. An example of a customer report is a report of the 5 best customers.

  • Responsibility Reports:

Managers of individual departments undertake the preparation of responsibility reports. An example of these reports is the Purchase manager submitting a report regarding various aspects of purchasing.

  • Exception Reports:

Exception report preparation takes place to list out the various conditions and exceptions. An example of this would be the inventory status report.

Question 10. Describe Management Information System and Accounting Information System. 

Answer 10: An information system called MIS creates and analyses reports to give management accurate and timely reports that they may use to make decisions. A company’s information recording system, or AIS, is used to identify, gather, analyse, and generate information about business organisations while presenting the same information to various users. Other information systems, including HRIS, the marketing information system, and the manufacturing information system, all have connections to AIS.

We all know that an organisation has many divisions that work together to complete various tasks that keep the company running.For instance, the AIS, or accounting information system, handles financial choices. In contrast, the HR department is in charge of keeping track of employee information and creating payroll and salary structures for the staff. Similarly, the HR department provides qualifications, abilities, and experience for the manufacturing department to use and distribute.

Similar to how the account department processes orders, the manufacturing department prepares a list of items based on requirements. Thus, it is clear that AIS interacts with every department inside an organisation.

Question 11. State the relationship between Information and Decision. 

Answer 11: An organisation is made up of various types of decision-making units. Each department makes decisions to achieve the common organisational goals. An organisation must create plans, common goals, and policies. All of these events are based on information (data) that has been acquired from background experience and projections of future circumstances. An organisation distributes resources and strives to meet goals based on this knowledge. As a result, it is true that information aids decision-making and that past decisions serve as a source of information going forward.

Benefits of Solving Important Questions Class 11 Accountancy Chapter 12

It is often the easy chapter that gets overlooked when practicing for examinations. Chapter 12 of Applications in Accounting also proves to be a reasonably easy chapter that might help students score well on their tests. Going through the NCERT books theory and revising with the help of Chapter 12 Class 11 Accountancy Important Questions can significantly benefit students in scoring good grades in their examinations. 

Here are some of the benefits students can get by solving the Important Questions Class 11 Accountancy Chapter 12:

  • The questions give students an idea of how questions might appear in the examination.
  • The Important Questions Class 11 Accountancy Chapter 12 are created considering the crucial concepts from the entire chapter; hence, going through these questions can help students thoroughly revise the chapter.
  • Step-by-step solutions will help students practice writing answers efficiently and effectively during tests and exams.
  • The list of Important Questions Class 11 Accountancy Chapter 12  is created following the latest CBSE syllabus so students can rely on these questions for exam preparations. 

The NCERT textbooks, NCERT study guides, CBSE practise exams, CBSE past exam papers, CBSE extra questions, and CBSE mock exams are some of the materials offered on Extramarks in addition to the Important Questions Class 11 Accountancy Chapter 12. Students can access the following resources by clicking on the URLs provided below:

  • NCERT books
  • CBSE Revision Notes
  • CBSE syllabus
  • CBSE sample papers
  • CBSE past years’ question papers
  • Important formulas 
  • CBSE extra questions

Q.1 Consider the following statements-

1. Computer help accounting from journalising, analysis to conclusion.

2. In database we can benefitted of co-operations and uniformity.

A. Both statements are true.

B. Both statements are false.

C. Statement 1 is true and 2 is false.

D. Statement 1 is false and 2 is true.


Both statements are true.

Q.2 What are the steps involved in designing an Accounting Report


The following steps are involved in designing an accounting report:
1) First of all, clearly define the objectives of the report.
2) The report should contain complete information and easy to understand by the users.
3) The report should specify the queries that are helpful in database manipulation.
4) It must contain analyses and suggestions.

Q.3 What do you understand by an accounting report Explain the process of designing an accounting report.


The summary of accounting information is known as an accounting report. Data is collected from various sources to provide information and manipulate the same data to provide specific information. The accounting reports vary according to the requirements or on the decision was taken.

The steps in designing accounting reports are as follows:
1. Defining the objective: The objective of defining the report should be clear.
2. Format and content of the report: The entire content and the format of the report should be clearly stated.
3. Information queries: To manipulate the database, all the accounting information queries must be specified.
4. Completion of the report: The completion of the report must be ended with a complete explanation.

Q.4 What is the role of people as an element of computer


People interacting with the computer are also called live-ware of the computer system. They constitute the most important part of the computer system:

  • System Analysts: are the people who design a data processing system.
  • Programmers: are the people who write programs to implement the data processing system design.
  • Operators: are the people who participate in operating the computers.

People who respond to the procedures instituted for executing the computer programmers are also a part of live-ware.

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FAQs (Frequently Asked Questions)

1. What are the topics covered in Chapter 12 for class 11, Accountancy?

Following are the topics covered in Chapter 12 Application of Computers in Accounting:

  • Meaning and elements of computer system
  • Hardware and Software
  • Data
  • Connectivity
  • Capabilities of computer system
  • Speed
  • Accuracy
  • Reliability
  • Versatility
  • Storage
  • Limitations of a computer system
  • Components of a computer
  • Input unit and the Output unit
  • A central processing unit (CPU)

Students can understand and study these concepts from NCERT books. Students can also solve questions from various other sources such as CBSE sample papers, past years’ question papers, reference books, etc., in order to perform well in the examinations


2. What are the essential reference books for Class 11 Accountancy?

Reference books play an essential role in helping students practise various questions for their examinations. Studying from reference books can help students strengthen their concepts by solving various questions. For Class 11 Accountancy, students can consult two reference books: T.S. Grewal’s Double Book Keeping System and DK Goel’s Accountancy Class 11 textbook, in addition to studying the subject from NCERT Class 11. Students may also consult Accountancy Class 11 Chapter 12 Important Questions on Extramarks to get a holistic study session.