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.
From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet: 