Explain 'Payroll Accounting Subsystem' and 'Costing Subsystem'.

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Accounting Information System (AIS) and its various subsystems may be implemented through Computerised Accounting System. The subsystems are:1. Payroll Accounting Subsystem: It deals with payment of wages and salary to employees. A typical wage report details information about basic pay, dearness allowance, and other allowances and deductions from salary and wages on account of provident fund, taxes, loans, advances and other charges. The system generates reports about wage bill, overtime payment and payment on account of leave encashment, etc.2. Costing Subsystem: It deals with the ascertainment of cost of goods produces. It has linkages with other accounting subsystems for obtaining necessary information about cost of material, labour, and other expenses. This system generates information about changes in the cost that takes place during the period under review.

Computerised Accounting System

Accountancy 386 Views

Explain 'Payroll Accounting Subsystem' and 'Costing Subsystem'.

Accountancy
386 Views