How Long Are Books Of Accounts Maintained?

What are the two books of accounts?

There are two main books of accounts, Journal and Ledger.

Journal used to record the economic transaction chronologically.

Ledger used to classifying economic activities according to nature..

What do you mean by statutory books?

Meaning of statutory book in English one of a set of books or computer records that a limited company must keep by law.

Who is responsible for maintenance of books of accounts?

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 is the definition of ledger?

A ledger is the principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

How many years books of accounts should be maintained as per Companies Act 2013?

8 financial yearsEvery company is required to maintain books of accounts for 8 financial years. However, in case an investigation has been ordered against the company, central government may extend such period.

What are the books of accounts maintained in every organization?

Books of Accounts to be maintained by Private Limited Company Under Companies ActCash 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.More items…

What are the types of bookkeeping?

Here are 10 basic types of bookkeeping accounts for a small business:Cash. It doesn’t get more basic than this. … Accounts Receivable. … Inventory. … Accounts Payable. … Loans Payable. … Sales. … Purchases. … Payroll Expenses.More items…•

What is cash book?

A cash book is a financial journal that contains all cash receipts and disbursements, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.

Can members inspect books of accounts?

The person authorized need not be the director of the subsidiary company. In case of section 8 companies, members can inspect the accounts as per the clause 9 of Form INC 13(Memorandum of Association) issued under rule 19 (2) of Companies (Incorporation), Rules 2014.

What is the meaning of books of accounts?

noun. any journal, ledger, and supporting vouchers included in a system of accounts. books of account, the original records and books used in recording business transactions.

How do you maintain books of accounts?

13 Accounting Tips for Small Businesses to Keep the Books BalancedPay Close Attention to Receivables. … Keep a Pulse on Your Cash Flow. … Log Expense Receipts. … Record Cash Expenses. … Know the Difference Between Invoices and Receipts. … Keep Personal vs. … Hire a Professional to Handle Your Taxes.More items…•

Why are books of accounts maintained?

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. … Accountancy.