Cell Referencing is very important term used in excel formula. Cell Referencing means one cell address is referenced into another cell to do calculations.
There are three types of referencing:
· Relative Referencing
· Absolute Referencing
· Mixed Referencing
Relative Referencing
By Default, Relative Referencing is used in Excel. Now see the example of Relative Referencing. Look at formula in cell G2 which references to cell C2, cell D2, cell E2 & cell F2. When we copy this formula by dragging the lower right corner of the cell G1 to another cell location such as G2 to G11. The relative referencing will take place. Because G3 references to cell C3, Cell D3, Cell E3 & Cell F3 relatively.
AbsoluteReferencing
Absolutereferencing will be used when we want to make our cell address fixed. See the formula in cell G2 which computes Gross Salary in which TA is fixed for each employee. To Make the Cell F2 as fixed, assign $ sign with column name as well as row number. Then drag lower right corner of cell G2 up to cell G11.
Let us see another example of Absolute Referencing.
In this example , we are calculating the simple interrest by multipling principle, rate and time. When we drag the formula from F5 to F9, it shows the result as 0 . Because cell D7 containing Principle and Cell E5 containing Rate are absolute.
So to make the cell D7 and Cell E7 absolute assign $ sign in column name and row number of cell D7 and E7 in formula cell G7. Now drag lower right corner of the cell G7 upto cell G11. Now see the result ,it shows correct values.
MixedReferencing
Combination of Relative Referencing and Absolute Referencing is referred as Mixed Referencing.
In this example, we are calculating the Simple Interest in cell G9 by multiplying F8, G8 and G9.
When we drag from G9 to K9 and Then K13. It shows wrong values.
To rectify this use mixed referencing. Use $ sign with column name and row number of cell f8, and assign $ sign with row number of the cell G8 which is common to all cells of rate value. Similarly assign $ sign with column name of cell F8 which is common to all cells of time value. Now it shows correct values.