Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Overview of Computerised Accounting System

Question:

In which type of codification, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group?

Options:

Sequential Codes

Block Codes

Mnemonic Codes

All of these

Correct Answer:

Block Codes

Explanation:

The correct answer is option 2- Block Codes.

In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group. In most of the uses of block codes, numbers within a sub-range follow sequential coding scheme, i.e. the numbers increase consecutively. As an example, dealer codes for a trading firm could be as follows:

CODES    DEALER-TYPE
100- 199 Small Pumps
200- 299  Medium Pumps
300- 399     Pipes 
400- 499    Motors

  

OTHER OPTIONS

  • In Sequential Code, numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document searches. This process enables in either identification of missing codes (numbers) relating to a particular document or a relevant document can be traced on the basis of code.
  • A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information. SJ for “Sales Journals”, HQ for “Head Quarters” are examples of mnemonic codes. Another common example is the use of alphabetic codes in Railways in identifying railway stations such as DLH for Delhi, NDLS for New Delhi, BRC for Baroda, etc.