TOPIC 2: QUICK REFERENCE TO “BOOKS OF ACCOUNTS”

Quick Reference to “Deposits:-
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Legal Provision:-
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Section 2(13), 128 of Companies Act, 2013.
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Rule 3 of Companies (Accounts) Rules, 2014.
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Points:-
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1. The Books of Accounts must give true and fair view.
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2. Cash basis for maintenance of books is prohibited.
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3. Only Double entry system is allowed.
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4. Normally, Books of A/C's Include :-
# Money received, Expenses.
# Sales and purchase of goods and Services.
# Assets & Liabilities.
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5. All the Books of Accounts shall be kept at the registered office of the Company.
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6. If company wants to maintain that books of Accounts in other place in india then Board Resolution should be passed. & Form AOC-5 should be filled within 7 days from Board Resolution date.
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7. Company can keep Books of Accounts in electronic mode.
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8. The Branch offices are required to send proper detailed return at quarterly basis to the registered office of the Company. And it's open for inspection to Directors during business hours.
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9. The Books of Accounts shall be Preserved for Minimum 8 Financial years.
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10. CFO, MD, WTD in charge of Finance and other person charged by board are responsible for maintaining Books of Accounts.
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11. There should be proper Storage, Retrieval, Back-up for Books of Accounts.
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12. The Books of Accounts must must not include any fictitious transaction. It should not Suppress any Transaction.
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Regards
ACA SOURAV BAGARIA