COMPUTERISED

ACCOUNTING SYSTEM
A PRACTICAL GUIDE

OLUFEMI A. OLADIPO
FIRST EDITION

i
 COMPUTERISED
ACCOUNTING SYSTEM
A PRACTICAL GUIDE
USING

- MICROSOFT EXCEL
- PEACHTREE ACCOUNTING
- SAGE 50
- OVERVIEW OF IFRS

OLUFEMI A. OLADIPO
FIRST EDITION

DEDICATION

ii
This book is dedicated to the Almighty GOD, the source of all
knowledge and the God of impossibilities.
He is a God that fulfills promises.

I also dedicated this book to the following people:

Pa Samuel Oladipo Tugbobo (My Late Paternal Grand Father)
Alhaji Kadiri Adegbayi (My Late Maternal Grand Father)
Madam Ajiwun Adegbayi (a.k.a Iye Bawa)
Mr. Thomas Oladele Oladipo (My Late Father)

May their gentle souls rest in perfect peace (Amen)

FOREWORD

iii
I feel good and highly honoured to write a foreword note to this book
titled COMPUTERISED ACCOUNTING SYSTEM – A
PRACTICAL GUIDE written by Mr Oladipo Olufemi Adebayo.
Computers can no longer be classified as a mere invention, rather it
is a revolution. We cannot imagine our world without computers
today. There is no area, which is untouched by computers, be it the
field of medicine, architecture, commercial services like banks,
accounting, education, and even electronic process, we use
computers in almost human endeavor today. Thus knowledge of
computers is a must for everyone because it is no longer a luxury but
a necessity of life to be relevant in the modern day.
I have had the opportunity of going through the manuscript and I
have found out that the author dealt extensively on topics like, Parts
of computers and their functions, Using Microsoft Excel to prepare
payroll, Peachtree Accounting Packages, Sage 50 Accounting
Packages and current trends in the field of Accounting, like
Overview of International Financial Reporting Standards (IFRS) and
Pension Reform Act 2014, that lecturers, corporate accountants and
students of tertiary institutions will find useful in their studies.
A quick glance through the book will convince one that the text
emanated from a long acquired wealth of experience from teaching
both practical and theoretical knowledge. This text has been

iv
specifically directed towards assisting accounting & finance
students, as well as corporate accountants in equipping themselves in
their drive towards current trends in the field of accounting and gain
competitive advantage over their counterparts in the labour markets.
Also to be able to face emerging challenges in the area of
Information and Communication Technology (ICT) in the
academics, industry, and in the global village.
To this end, I am optimistic that this book will be useful not only to
students in tertiary institutions, accountants, bankers and other allied
disciplines.
The book is therefore strongly recommended for students of tertiary
institutions and corporate accountants. The reading public will also
find the book very useful.

Dr. Michael A. Ajayi (Ph.D)

Dean, College of Business and Social Sciences,
Landmark University,
Omu-Aran, Kwara State.

ACKNOWLEDGEMENTS

v
To God be the glory, Great things He has done. I thank the Almighty
God for His endless shower of blessing on me and for sparing my
life up to this moment, for bestowing on me Grace, Good health, the
Zeal and Knowledge with which I started and completed this book.
In this regard, I return all the praises, adoration and honour to him
for making this textbook available for the use of mankind.

My special gratitude goes to Prof. Layi Ogunkoya, the former Acting

Vice Chancellor, Olabisi Onabanjo University, Ogun State, Prof.
Aminu Ayuba (My Mentor), Dean, College of Management
Sciences, University, Prof, J.J. Adefila, Head of Department,
Accountancy, University of Maiduguri, Dr. Adewusi, Federal
University of Technology, Yola (FUTY), for their inspiration,
encouragement and support. I owe them a lot of gratitude.

My profound gratitude goes to the Management Team of Landmark

University; my prayer is that May God Almighty in His infinite
mercy perfects everything that concerns them.

I am sincerely grateful to Dr. M.A. Ajayi, Dean College of Business

and Social Sciences, Landmark University, for his inestimable
contributions towards the success of this book. He painstakingly
went through the original manuscript and offered penetrating

vi
comments. My thanks also go to my senior colleagues and
colleagues- Dr. Tony Nwanji, Dr. M.I. Oloye, Dr. Frank Awonusi,
Mr. A. Otekunrin, Mr. Lawal Adedoyin, Mr. S. Ajayi, Mr David
Obadiaru, Mr. Babalola Leke, Mr. Akinpelu, Mrs. Shayo, and Mrs.
Mustapha for their wonderful support.

The following personalities merit being thanked for their active and
invaluable roles in my life and career. I owe Dr. Okolie E, Charles,
Department of Biological Sciences, Landmark University, Mr & Mrs
Francis Iwelumor, for their support.

I would record with thanks the indispensable help I have had from
the following people, particularly, Mr Adetayo (Baba Kemi), Mr.
Jamiu Okulaja, Mr. Kabiru Buhari, Mr. Austin, Mrs Funmi Sanusi,
Mrs Blessing Momoh, Mrs Bella Ikeme and Mr. Ekundayo Sunday,
all of former Design Options Limited for their support and
encouragement.

More importantly, I am grateful to my beloved mother, Mrs. L.A.

Oladipo, for your invaluable role, encouragement, financial support,
spiritual support, motherly support and well being in life. I prayed
that May Almighty God will continue to keep her and she will
continue to eat from the fruit of her labour in good health. I am

vii
indebted to my family members, particularly, Mr & Mrs Yetunde
Okusanya, Mr & Mrs Olusesan Oladipo and Miss Olajumoke
Oladipo for their support.

I want to specially thank my sweetheart, my love, Mrs Oluwatosin

Oladipo (Wife), and my children, Oluwasemilore Oladipo
(Daughter) and Olawale Oladipo (Son) for their patience, endurance
and support throughout this project.
I express my gratitude to all my Accounting Students both
Pathfinders and incumbents of Landmark University, for their moral
and spiritual support.
I also express my indebtedness to all authors I have made references
to in this book.

There are many other persons whose names are as important as those
that are acknowledged above. My inability to include them here is by
no means a sing of contempt. Definitely, their good names are boldly
written in my mind as well as in the record book of God. May the
Lord Almighty reward them abundantly, Amen.

Finally, I am so grateful to God Almighty for His mercies, love, and

care, for the great opportunity He gave me to accomplish the task of
writing this book.

viii
OLADIPO, Olufemi Adebayo
Department of Accounting & Finance,
Landmark University,
Omu-Aran, Kwara State.
Oladipo.olufemi@lmu.edu.ng

TABLE OF CONTENTS

SECTION I – INTRODUCTION TO COMPUTER

Chapter One - Parts of Computer 1-21

ix
Chapter Two - Data and Information 22-29
Chapter Three - Computerized Accounting System 30-34
Chapter Four - Components of Accounting Information System 35-41

SECTION II - MICROSOFT EXCEL PACKAGE

Chapter Five - Introduction to Microsoft Excel 42-68
Chapter Six - Using Microsoft Excel to prepare Payroll Schedule 69-74

SECTION III – PEACHTREE ACCOUNTING PACKAGE

Chapter Seven - Introduction to Peachtree Accounting Package 75-102
Chapter Eight - Accounting Coding System and Chart of Accounts 103-126

SECTION IV – SAGE 50 ACCOUNTING PACKAGE

Chapter Nine - Overview of Accounting Packages 127-134
Chapter Ten - Introduction to Sage 50 Accounting Packages 135-146
Chapter Eleven- Maintenance of Inventory on Sage 50 Accounting Packages
147-154
Chapter Twelve- Preparing Reports on Sage 50 Accounting Packages 155-186
Distinctions between Sage 50 and Peachtree Accounting Packages

SECTION V – OVERVIEW OF INTERNATIONAL

FINANCIAL REPORTING STANDARDS
Chapter Thirteen- Adoption of IFRS in Nigeria 187-207
Chapter Fourteen- Practice Questions and Solutions Exercise 208-240
References 241-245

x
Index 246-250

xi