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The Effectiveness of Manual Accounting to the Senor High School -ABM

students of LSPU-SCC

Accounting records systematically and comprehensively the financial

transactions pertaining to a business. A business without accounting is

unorganized and hard to manage. In short, accounting has a big impact on

every business. According to Investopedia, the summarizing, analyzing, and

reporting process of these transactions to tax collection entities, regulators, and

oversight agencies is also accounting. The large company's operations,

financial position, and cash flows over a particular period was summarized by

the financial statements. These are a concise summary of hundreds and

thousands of financial transactions it may have entered into over this period. At

accounting's heart is the double-entry bookkeeping method which involves

making two recording entries for each transaction: in one account is debit and

in another is credit. This kind of method helps prevent having errors because

the total sum of debits must be equal to the sum of credits. The recordation of

accounting can be split into three activities or aspects: setting up a system of

record keeping, tracking transactions within that system of record keeping, and

aggregating the resulting information into a set of financial reports.

Background of the Study

A business has the option of using the method of accounting where

accountants record financial information in several paper ledgers and journals.

Furthermore, there are two major types of methods used in recording

accounting information, such methods are; Manual Accounting System and

Software Accounting System or Computerized Accounting System.

Business Dictionary said that traditionally, accounting is done manually,

by trained accountant, it includes the method of processing, recording,

journalizing transactions, posting to the ledgers and preparing the financial

statements which provide decision makers with useful information in making

decisions. They use several paper ledgers and journals where accountants

records financial information about their company. Manual accounting is very

detailed the accountant must carefully enter the information of the transaction

into physical book. These manual accounting systems are wholly used for

preparing income tax returns, reports to managers, bills to customers and other

forms of providing accounting information. An advantage of a manual

accounting system includes cheaper workforce and resources, reliability,

independence from machines and readily available skilled worker. However,

disadvantages include: reduced speed, increased effort of accountants,

relatively slower internal control reporting, routine work, and greater difficulty to

monitor and correct inaccuracies and mistakes.

Business Dictionary also said that in Computerized Accounting System,

technology is the main part of our modern society and business practices. It

also plays a major important role in accounting as it helps in reducing the time,

effort and cost of record keeping while improving clerical accuracy. Technology

has distinct the way we store, process and summarize large masses of data

which makes accounting free to increase its field. Computer has the ability to

add and subtract, but frequently not to multiply or divide, the computer run with

relatively simple software routines. An advantages of these removes routine,

has increased accuracy, increased internal control system, increased

productivity, and easy back up and restoration of records. Despite all the
advantages of the system it will also mean that you have to shell some cost in

developing, introducing and using the system. You also need to have special

training for personal, increased personnel costs and dependence on machines.

However, this study focuses on the effectiveness of Manual Accounting

to the Senior High ABM students in LSPU-SCC.

Theoretical Framework

According to Longenecker (2006), a good accounting must provide

result of operations accurately and comprehensively. This will result to a quick

comparison between the previous and current data as well as the data of other

companies and it also give the true and transparent financial statements that

can be used by stakeholders such as bankers, creditors, customers,

government, and investors. He also found out that many entrepreneurs do not

benefit the use of their financial statements and do not keep a proper record.

Small and even medium enterprise business owners are not expert when it

comes to accounting but even though they are not experts, they know the

process including the financial statements and they can identify the best

methods that can be applied to their businesses.

In addition, McCosh (1986) concluded that accounting's automation

process doesn't help to produce more focused information on managerial

accounting information but it greatly saved time, perfect, fast, and made

accounting more comprehensive.

Also, according to Bergsman (1992), the deficient business structure

was caused by the business owners because they fail to hire an accountant.
Some of them think that they will get less benefit as compared to cost they will

incur. They also think that there are some unique problems which can only be

solved by them and not by others. He also added that the owner-managers are

those who should be responsible in keeping all the documents, financial

statements, invoices in a systematic manner which have direct impact on

journals, ledgers, and vouchers. Thus there would not be any problem in filing

systems. He pointed out that small business enterprises consider proper

accounting system the last even though it should be the first. The owners of

small businesses are more interested in acquiring products, payrolls, and

selling products than accounting.

For learning to take place, the theories of manual accounting above may

help those students including those who have learning difficulties in accounting

develop their understanding of manual accounting. The theories above are

related to this study because all of it states the importance of accounting in

every business.
Conceptual Framework

The Effectiveness of Manual Accounting to the SHS-ABM students of



Demographic Profile Performance

1. Age 1. Score

2. Gender

Manual Accounting

1. Time Consumed

2. Equipment

Frame 1 Frame 2

Figure 1. Research Paradigm of the Study

Statement of the Problem

This study focuses on the Effectiveness of Manual Accounting to the

Senor High School ABM students of LSPU-SCC.

Specifically this sought to answer the following position.

1. What is the profile of the respondent in term of;

1.1 Age and

1.2 Gender

2. What is manual accounting to the respondent in term of;

2.1 Time Consumed and

2.2 Equipment

3. Does manual accounting significantly affect the performance of the

senior high school ABM students in LSPU-SCC?

Research Hypothesis

Manual accounting has no significant effect on the performance of the

senior high school ABM students in LSPU-SCC.

Significance of the Study

This study would be beneficial for many individuals and groups in these

modern days. It will be very helpful to understand and improve oneself and by

the use of this research, the beneficiaries have advantage like they will know

the effectiveness of manual accounting that they may apply it to their self.

Students. By the use of this research, students are able to learn and

understand manual accounting in the best way.

Teachers. This study will help the teachers to improve their teaching

styles and find the easiest yet most effective way of teaching manual

accounting to the students.

Future Researcher. This study could contribute to related foreign and

local literature by using this as related studies. Although the findings of the

study will apply only to the actual participants, the findings may still be used as

reference material and database for other researchers who are interested in the

same or similar variables.

Scope and Limitation

This study limits its scope in the Effectiveness of Manual Accounting to

the Senior High School ABM students of LSPU-SCC through their demographic

profile in terms of age and gender, and manual accounting process in terms of

time consumed and equipment in their effectiveness in performing their duties

and responsibilities. The researchers relied 30 as respondents because there

are only few sections of ABM in LSPU-SCC Senior High School.

Definition of Terms

The terms are operationally defined for better understanding of the


Accounting -