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ABSTRACT: The development of accounting systems and the computerization of these systems in a small scale business environment is the main theme of this study. The researcher examined the issues involved by understanding the computerized accounting system of model computers company, Warri. Based on the analysis of data for this study it was discovered that an effective and efficient operating environment is function of a good accounting system other things being equal. Similarity it was discovered that the introduction of computer and the development of accounting packages have revolutionized the accounting system of small scale business organization. Therefore the general conclusion drawn from this study is that a computerize accounting system is a basic paradigm for small scale business organizations.

LIST OF FIGURES

Fig. 4 – 1         Mcc organisation chart

Fig 5 – 1          Daceasy system interface

Fig 5 – 2          Customer module

Fig 5 – 3          Uendor module

Fig 5 – 4          Product module

Fig 5 – 5          General ledger module

Fig 5 – 7          Fixed asset module

Fig 5 – 8          Purchase order module

Fig 5 – 9          Invoicing module                   

Fig 5 – 10        Financial module

Fig 5 – 11        Default layout of accounts

Fig 5 – 12        Chart of account

Fig 5 – 13        Model chart of accounts

Fig 5 – 14        Fixed assets list

Fig 5 – 15        Current trail balance

Fig 5 – 16        Current profit and loss financial report

Fig 5 – 17        Period balance sheet

TABLE OF CONTENT

 

CHAPTER ONE

            General Introduction                                                  1

1. Background of the study                                                        1
2. Statement of the problem                                           3
3. Objectives of the study                                                           4
4. Significance of the study                                                        5
5. The scope of the study                                                            6
6. Research limitations                                                    6
7. Definition of terms                                                     7

CHAPTER TWO

Review of related literature                                        10

1. Introduction                                                                10
2. Accounting information system                                  13
3. Computer technology and accounting                                    19
4. Computer application for small business                    27

Note                                                                                        31

 

CHAPTER THREE

            Research methodology                                                           34

1. Nature of the study                                                     34
2. Sources of data                                                                       34
3. Method of data presentation                                      35

CHAPTER FOUR

            Model – A company presentation                               37

1. Historical background                                                             37
2. Organizational structures                                            38
3. The accounting system of model computers company 42

CHAPTER FIVE

            Dave presentation                                                       44

1. Basic issues                                                                             44
2. Daceasy accounting package                                      52
3. Computerization at MCC                                           54
4. Daceasy and basic accounting operations                   54

 

CHAPTER SIX

Findings, summary and conclusion and recommendations

1. Findings                                                                                  96
2. Summary and conclusion                                            102
3. Recommendations                                                                  103

BIBLIOGRAPHY                                                                 108

CHAPTER ONE

GENERAL INTRODUCTION

1. BACKGROUND OF THE STUDY

An accounting system has been described as an integrated frame work within on entity (such as business firm) that employs physical resource (ie material, supplies, personnel, equipment, funds) to transform economical data into financial information for (a) conducting the firms operation and activities and (b) providing information concerning the entity to a variety of interested users.

An accounting system has all the elements or characteristics of a system such as inputs, processes, outputs, controls and feedback. Davis of al write that “system is the anatomy of accounting.” It domain comprises the entire financial dimensions of business operations, including the flow of financial intelligence throughout the organisation and beyond.

The objective of accounting system is to provide an integrated and accumulated information that should assist management in making decisions for the effective and efficient execution of the goals of the organisation. An accounting system should be able to identify, assemble, classify, record, and report an entity’s transactions and to maintain accountability for the related assets and liabilities. In order to accomplish these objectives, the system should have sufficient and appropriate methods and records.

The advents of this computer and the Manufacting of accounting software have revolutionized accounting operation, Davis et al writs that computer system owe much of their acceptance in business to the increased speed and efficiency that they provide for data processing and reporting. They went further to state that computer

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