Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Overview of Computerised Accounting System

Question:

Method of Codification should be :

Options:

Such that it leads to grouping of accounts

An identification of mark

Easy to understand

To safeguard assets

Correct Answer:

Such that it leads to grouping of accounts

Explanation:

The correct answer is Option (1) - Such that it leads to grouping of accounts.

The coding scheme of Account-heads should be such that it leads to grouping of accounts at various levels so as to generate Position Statement (Balance Sheet) and Statement of Profit and Loss (Profit-Loss Account).