Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Overview of Computerised Accounting System

Question:
100 - 199 Small Pumps
200 - 299 Medium Pumps
300 - 399 Pipes
400 - 499 Motors
The above codes are examples of which of the following type of Code in the context of coding scheme of Account -head in Computerized Accounting System?
Options:
Sequential Code
Mnemonic Code
Block Code
Any of the above
Correct Answer:
Block Code
Explanation:
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