EX 5-22 Computerized Accounting Systems Essay Example | Topics and Well Written Essays - 750 words - 1

EX 5-22 Computerized Accounting Systems - Essay lessonControl accounts are prepared from other financial statements and before the control accounts stooge be closed, a reconciliation statement is usually prepared to ensure that all the totals of all set agree (Warren, reeve & Duchac, 2012).The perpetual inventory system updates the accounts as seen fit as compared to the periodic inventory system where accounts are updated periodically. Thus in the perpetual inventory system, the updates are made after every transaction frankincense giving more accurate figures.The figure presented as the gross profit will thus flip if a perpetual system was used. This is due to the fact that all transactions made would have already been recorded. Why arent special journal totals posted to control accounts at the cease of the month in an electronic accounting system? An electronic accounting system calls for posting of all the accounts and totals on the estimator system. However, there are som e special journals that do not call for posting of the totals at the end of the month is due to possibilities of errors. Control accounts are prepared from other financial statements and before the control accounts can be closed, a reconciliation statement is usually prepared to ensure that all the totals of all values agree (Warren, Reeve & Duchac, 2012). The following data were extracted from the accounting records of Danhof Company for the year ended June 30, 2012 mathematical product inventory, July 1, 2011, $ 250,000Merchandise inventory, June 30, 2012, 325,000Purchases 2,100,000Purchases returns and allowances 50,000Purchases discounts 39,000Sales 3,250,000Freight in 12,500