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Method of codification should be: |
Easy to understand, cryptic and process data Such that it leads to grouping of accounts An identification mark To safeguard assets |
Such that it leads to grouping of accounts |
The correct answer is Option (2) → Such that it leads to grouping of accounts. Method of codification should be 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). |
