Company Accounting

Accounting for Company

The books of account need to be maintained so that it reflects correct financial position of the company and its suppliers and customers, regular reconciliation of bank statement and the ledger of bank maintained by the organisation must be reconciled so that both is synchronised. The difference between the bank balance and the balance in bank ledger maintained by accountant is obvious as the accountant records debit the moment it issues a cheque whereas the bank reduces the balance only when the cheque is presented and subsequently it is paid by the banker to the presenter. These days accountants play a very significant role in managing the business

Legal Provisions

Section 138 of the Companies Act, 2013 requires that every company shall prepare and maintain its books of account and other relevant books and papers and financial statements for every financial year, which give a true and fair view of the state of the affair of the company. A company is required to preserve the books and papers including vouchers which is relevant to any entry in such books of account for a period of 8 years.

Book to be Maintained at Registered Office

The books of account is required to be maintained at the registered office of the company, however, the Board of Directors may take a decision to keep and maintained the books of account at any other place in India. In such situation, the company must file a notice to the registrar of companies in Form No. AOC 5 intimating maintenance of books at a place other than the registered office.