Question

Comparative Study of Traditional Accounting System and Modern maning

Answer 1

Accounting is an art that an organization uses to measure its
financial performance by recording and classifying all the
transactions like sales, purchases, assets, and liabilities in such
a way that adheres to certain accepted standard formats. It is
useful to evaluate a Company’s past profit trends, present
condition, and future prospects. A more formal definition of
accounting is the art of recording, classifying, and
summarizing accounting transactions and events which are, in
part at least, of a financial character and interpreting the
results thereof.
Indian accounting is set to face new challenges from
developed countries after externalization of accounting work.
To meet this challenge accounting sector in India needs
tangible reforms in terms of quality and output. To fulfill these
kind of needs, Indian accountants must know about the latest
trends in accounting, i.e. about new methods of accounting
entries , new methods of departmental accounting and
accounting of branches and automation of accounting system.
This should be possible only by adopting Modern accounting
practices.
Till 1980 Accounting has been done manually. Before the
emergence of fast and cheap computers, accounting
traditionally was performed by recording all the transactions
in columnar papers and kept in voluminous binders.