Question

Comparative study of conventional and modern system of accounting project

Answer 1

Traditional/modern/conventional accounting uses separate books to record each transaction. These books include cash book, purchase book, sales book and so on called the books of prime entry. The entries in these books are then transcribed into ledgers that comprise accounts for various aspects such as assets, liabilities, expenses, and income.

Modern/computerized accounting uses a computer to record the details of the books of prime entry. An accounting software is then used to sort the entries based on date and transaction type following which a day book is generated. The entries are once again sorted on the basis of affected accounts to create a ledger report.