Question

Which of the following is an example of sequential code?

• A. Using Code "CL001" for "Accounts of XYZ Ltd."
• B. Using Code "100-199" for "Dealers of Small Pumps"
• C. Using Code "SJ" for "Sales Journals"
• D. Using Code "HQ" for "Headquarters"

Answer 1

The Correct Option is A

In accountancy, sequential code is a numbering system used to organize records in a specific order. It involves using numbers or alphanumeric characters that follow a sequential pattern, making it easy to determine the order and relative positions of code assignments. Let's analyze the options:

Using Code "CL001" for "Accounts of XYZ Ltd."

• This option uses CL001, where "CL" is a prefix and "001" indicates a sequence number. Such a format indicates a structured sequence assignment, making it a clear example of sequential coding.

Using Code "100-199" for "Dealers of Small Pumps"

• This range represents a block of numbers rather than a specific sequence number for individual entries. Therefore, it doesn't reflect sequential coding as per individual record assignment.

Using Code "SJ" for "Sales Journals"

• The code "SJ" consists of only alphabets without any sequence number, lacking the characteristic numerical sequence.

Using Code "HQ" for "Headquarters"

• Similar to the previous example, "HQ" is an alphabetic code without any sequence, thus not sequential.

Thus, the correct example of sequential code in this context is Using Code "CL001" for "Accounts of XYZ Ltd."

Answer 2

A sequential code is a type of coding system where codes are assigned in a sequential manner, usually starting with a predefined number and increasing systematically. This type of code helps in organizing records and items in a manner that is easy to trace.

Let’s analyze each option:

(1) Using Code “CL001” for “Accounts of XYZ Ltd”:
This is an example of sequential coding because the code begins with “CL001”, and subsequent entries would follow the same pattern, e.g., “CL002”, “CL003”, and so on. The code increases systematically, which is characteristic of a sequential code.

(2) Using Code “100-199” for “Dealers of Small Pumps”:
While this range appears to be sequential, it’s a range and not an actual sequential code, as it doesn’t describe a continuous sequence of items; it simply sets a numeric range.

(3) Using Code “SJ” for “Sales Journals”:
This is an example of a non-sequential code, as the code “SJ” does not indicate any form of sequence or systematic number progression.

(4) Using Code “HQ” for “Headquarters”:
Similarly, this code is non-sequential. It does not follow a numbering system that increases in any sequence.

Thus, the correct answer is:

(1) Using Code “CL001” for “Accounts of XYZ Ltd”.