Which of the following is an example of sequential code?

The correct option is: Using Code “CL001” for “Accounts of XYZ Ltd”.

Explanation:
Coding systems are used in accounting and database management to systematically categorize and organize data. Let us break down the different types of coding structures to understand why "CL001" represents sequential coding:
1. Sequential Coding (or Serial Coding): In this method, data items are assigned consecutive numbers or alphanumeric codes in a continuous, ordered sequence (such as 001, 002, 003 or CL001, CL002, CL003). The prefix "CL" might denote a category like "Clients" or "Ledger", while "001" represents the first item in that sequence. This ensures each new account is added systematically in chronological or numerical order.
2. Block Coding (or Range Coding): This system reserves specific ranges of numbers for particular groups or classes of items. For example, "Using Code 100-199 for Dealers of Small Pumps" reserves the entire block of numbers from 100 to 199 for a specific type of dealer. This is a block code, not a sequential code.
3. Mnemonic Coding: This method uses abbreviations, letters, or short acronyms that assist the memory in identifying the item. For example, using "SJ" for "Sales Journals" or "HQ" for "Headquarters" relies on memory-association (mnemonics) to recognize the terms instantly.

Therefore, assigning the structured sequence code “CL001” to represent an account is a clear example of sequential coding.