January 15, 2019

What is the Meaning of Books of Accounts

What is the Meaning of Books of Accounts

At many occasion we come to listen about books of accounts, but in fact we know what constitute books of accounts, every company firm and any kind of business entity has to maintain certain books of accounts as required under companies act as required under Income Tax law or any other law, basically meaning of books of accounts is very comprehensive and includes:

“books of account” includes records maintained in respect of—

(i) all sums of money received and expended by a company and matters in relation to which the receipts and expenditure take place;

(ii) all sales and purchases of goods and services by the company;

(iii) the assets and liabilities of the company; and

(iv) the items of cost as may be prescribed under section 148 in the case of a company which belongs to any class of companies specified under that section;