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The method of Codification should be: |
Such that it leads to grouping of accounts An identification of mark Easy to understand To safeguard assets |
Such that it leads to grouping of accounts |
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). |
