Table of Contents
What books of account are to be kept by a company?
Books of Accounts to be maintained by Private Limited Company Under Companies Act
- Cash Book, Journal , Cash flow statement and Ledgers.
- Copies of bills or receipts, Records of sales and purchases and Records of assets and liabilities.
- Financial Statements Such as Profit and Loss account, Balance sheet and trading Account.
Which section the Companies Act define the book of accounts?
As per Section 128(1), every company must prepare and keep its books of accounts and other relevant books, financial statements, and papers at its registered office.
How do you maintain books of accounts?
Books of accounts to be maintained
- Cash flow statement.
- Records of sales and purchases.
- Records of assets and liabilities.
- Items of cost.
- Deeds, vouchers, writing, documents, minutes, and registers whether in physical or electronic mode.
Is it compulsory to maintain books of accounts?
Books of accounts/accounting records have to be maintained if the gross receipts are more than Rs. 1,50,000 in 3 preceding years for an existing profession. This also applies to a newly set up profession whose gross receipts are expected to be more than Rs. 1,50,000.
What are the types of books of accounts?
6 Basic Books of Accounts:
- General Journal. This book is referred to as the original entry book.
- General Ledger. This book is referred to as the final entry book.
- Cash Receipt Journal.
- Cash Disbursement Journal.
- Sales Journal.
- Purchase Journal.
How many years books of accounts should be maintained under Companies Act?
A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year. A S. 25 company is required to maintain its books of account and vouchers for a period of not less than 4 years.
How many years are books of accounts maintained?
COMPANIES ACT A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year. A S. 25 company is required to maintain its books of account and vouchers for a period of not less than 4 years.
Who is not liable to maintain books of accounts?
When is bookkeeping not required? Where the income does not exceed Rs 1,20,000 or total sales, turnover or gross receipts are not more than 10,00,000 in all preceding 3 years — no books of account are required to be maintained.
What are the 6 books of original entry?
Following is the list of books of original entries:
- Purchase Journal.
- Sales Journal.
- Purchase Return.
- Sales Return.
- Cash Journal.
- General Journal.
What is Section 143 of Companies Act, 2013?
Reporting of frauds by auditor and other matters: (1) if an auditor of a company, in the course of the performance of his duties as statutory auditor, has reason to believe that an offence of fraud, which involves or is expected to involve individually an amount of rupees one crore or above, is being or has been …
How long should the books be maintained under Companies Act, 2013?
8 years
Books of accounts of a company must be maintained and preserved for a period not less than 8 years immediately preceding a financial year. The following persons in a company will be responsible for maintaining book of accounts: Managing Director. Whole Time Director, in charge of Finance.
What are the books of accounts of a company?
As per Companies Act, 2013 every company needs to maintain the books of accounts. As per the section 128 every company must prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year.
What is Section 128 of the Companies Act 2013?
Section 128 of the Companies Act, 2013 provides for Maintenance of books of accounts under the new Companies Act.
What is main maintenance of books of accounts?
Maintenance of Books of Accounts refers to the records that company has to maintain to keep the details of the specified financial transaction. Section 128 of the Companies Act, 2013 specifies the following key features related to the proper books of account as under:
Who can inspect the books of account of a company?
Any director can inspect the books of account and other relevant books and papers at business hours only. However, Books of Accounts of a Subsidiary company can be inspected by a person authorized by the Board of Directors 1. Not less than 8 Financial Years immediately preceding FY 2.