Integrated and Non-Integrated Accounting System
Integrated Accounting System
1. What do you understand by the integrated accounting system?
Answer: Integrated accounting system is a method of accounting for financial and costing transactions in which self-integrated accounts are maintained.
2. Give any two characteristics of the integrated accounting system?
Answer: Characteristics of an integrated accounting system
- Accounting of financial and costing transactions are done in one set of books.
- In the integrated accounting system, the cost profit and financial profits are one and the same.
3. Explain the Limitations of the integrated accounting system?
Answer: Limitations of the integrated accounting system are:
- The accounting system is sophisticated and requires efficient and trained staff.
- Not suitable if separate cost and financial data are required.
- This accounting system is complicated and costly.
4. Discuss the advantages of Integrated Accounts?
Answer: The main advantages of the integrated accounting system are:
- Accounting procedure is simplified.
- In this method, savory transactions are not accounted for twice, which saves labour, time, and money.
- There is no possibility of omission or forgetting of any business transaction in this system.
- Mechanized Accounting can be applied to this system.
Non-integrated Accounting System
1. What is the other name of cost control account system?
Answer: Other names of cost control accounts system with the Non-integrated system of accounting.
2. What do you understand by the cost control system?
Answer: When separate books are maintained for cost and financial accounts, it is required to prepare cost control accounts for maintaining double entry system.
Therefore cost accounts are known as cost control accounts.
3. What is non-integrated accounting system?
Answer: It is an accounting system where separate account books are maintained to record financial and cost transactions. Integrated and Non-Integrated Accounting System.
4. How are many sets of account books kept in non-integral accounts?
Answer: Two sets of accounts books are kept in the system – one for recording financial transaction while another for recording cost transaction.
5. What are the advantages of cost control accounts?
- Control account presents detailed information recorded in memorandum account books in an abridged manner to help managers in Planning policy.
- Different employees can be interested in record transactions leading to saving in time.
- Control accounts serve the purpose of internal check too.
- It helps to prepare to costing profit and loss account.
6. What are the characteristics of the non-integrated accounting system?
- Separate account books are maintained to record financial and cost transactions.
- Financial and cost accountant both are responsible to record transactions in the book separately.
- The double entry system is adapted for recording the transactions in both accounts books.
- Personal and real accounts are not opened in cost account books.
- General and cost ledger adjustment account is opened in cost books to complete the double entry system.
- Reconciliation statement is prepared to reconcile profits as revealed by cost account books and financial account books.
7. Name the principal account to be opened in cost books under Non-integral Accounting system?
Answer: Principal Accounts
- Stores ledger control account.
- Work in progress control account.
- Finished good control account.
- General ledger control account.
- Wages ledger control account.
- Factory overhead control account.
- Administrative overhead control account.
- Selling and distribution overhead control account.
- Cost of self-control account.
- Cost and profit and loss account.
You are here Integrated and Non-Integrated Accounting System.