Question

Explain Sequential codes and Block codes with the help of example.

Hint:

Explain sequential codes as numbers or letters given in consecutive order, with an example such as CL001, CL002. Explain block codes as a number range split into sub-ranges for groups, with an example such as 100-199 for Small Pumps.

Answer 1

Step 1: Understand what a code is:
A code is a short mark of numbers or letters given to an account, item or document.
Codes save time, cut errors and make sorting and searching easy in a computerised accounting system.
Sequential codes and block codes are two common coding methods.

Step 2: Explain sequential codes:
In a sequential code, numbers and/or letters are given in consecutive order.
These codes are used mainly on source documents such as cheques and invoices.
The order helps to spot a missing code. It also helps to trace a document from its code.

Step 3: Give an example of a sequential code:
Each new account takes the next number in the series.

CODES	ACCOUNTS
CL001	GCERT LTD
CL002	XYZ LTD
CL003	ARIL CORPORATION OF INDIA

The numbers run 001, 002, 003 with no gap, so a gap would show a missing account or document.

Step 4: Explain block codes:
In a block code, a range of numbers is split into a chosen number of sub-ranges.
Each sub-range is given to one specific group.
Inside a sub-range, the numbers usually go up one by one, as in a sequential code.

Step 5: Give an example of a block code:
Here the code range 100-499 is split by type of dealer item.

CODES	DEALER-TYPE
100-199	Small Pumps
200-299	Medium Pumps
300-399	Pipes
400-499	Motors

A code of 250 tells us at once that the item is a medium pump.

Step 6: Compare the two codes:
A sequential code tells the order of issue only. A block code also tells the group of the item.
A sequential code is simple and easy to check for gaps. A block code needs the ranges to be planned in advance.
A sequential code suits cheques and invoices. A block code suits grouped accounts and stock items.

Final Answer:
Sequential codes give consecutive numbers or letters (for example CL001, CL002, CL003). Block codes give each group its own number range (for example 100-199 for Small Pumps, 200-299 for Medium Pumps, 300-399 for Pipes and 400-499 for Motors).