Sequential Codes: Sequential codes are numbers or identifiers assigned in a consecutive manner, ensuring each code is unique. Example: Invoice numbers like 001, 002, 003, or employee IDs like E001, E002, E003.
Advantages: Easy to understand and use. Useful for maintaining chronological records, such as sales invoices or admission forms.
Disadvantages: Does not provide any categorization or specific meaning to the code. If a code is missed, it may create confusion or gaps in records. Block Codes: Block codes reserve ranges of numbers or identifiers for specific categories or groups. Example: In a library, science books may be coded as 100–199, literature books as 200–299, etc.
Advantages: Simplifies categorization and retrieval of information. Allows flexibility in expanding the range for a category without affecting others. Disadvantages: More complex to implement compared to sequential codes. May lead to wastage of numbers if ranges are not fully utilized.

Rishika and Shivika were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows:
Balance Sheet of Rishika and Shivika as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: | Equipment | 45,00,000 | |
| Rishika – ₹30,00,000 Shivika – ₹20,00,000 | 50,00,000 | Investments | 5,00,000 |
| Shivika’s Husband’s Loan | 5,00,000 | Debtors | 35,00,000 |
| Creditors | 40,00,000 | Stock | 8,00,000 |
| Cash at Bank | 2,00,000 | ||
| Total | 95,00,000 | Total | 95,00,000 |
The firm was dissolved on the above date and the following transactions took place:
(i) Equipements were given to creditors in full settlement of their account.
(ii) Investments were sold at a profit of 20% on its book value.
(iii) Full amount was collected from debtors.
(iv) Stock was taken over by Rishika at 50% discount.
(v) Actual expenses of realisation amounted to ₹ 2,00,000 which were paid by the firm. Prepare Realisation Account.