Question: How Do You Maintain Books Of Accounts?

What are the six books of original entry?

Books of original entryCash journal.General journal.Purchase journal.Sales journal..

How do you audit a book of accounts?

The above person shall maintain following books of accounts so as to help the assessing officer ascertain the income:Cash Book, showing day to day cash receipts and payments.Journal, as per the mercantile system of accounting.Ledger.Photocopies of bills, where amount of bill exceeds Rs 25.More items…•

Who is required to maintain books of account?

Who is required to maintain books of account? 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.

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.

What do you mean by statutory books?

Statutory Books are those which are necessary to observe legal formalities of a company including Registers. It is the duty of the Company Secretary to prepare and maintain the Statutory Books.

What is the main book of accounts?

It is the most important book of. preparation of the financial statements.

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 is the meaning of maintenance of books of accounts?

Under the Companies Act, 1956 maintenance of books of accounts is mandatory for every class of companies. … Books of accounts are a prime source of information through which information can be extracted about a Company. So every company is required to maintain and preserve proper books of accounts.

What are the books of accounts required by BIR?

When you register your business in the Bureau of Internal Revenue (BIR), one of the basic requirements is to register your books of account….For Taxpayer engaged in the sale of goods:General Journal.General Ledger.Cash Receipt Journal.Cash Disbursement Journal.Sales Journal.Purchase Journal.

What are the five major types of accounts?

There are five main types of accounts in accounting, namely assets, liabilities, equity, revenue and expenses. Their role is to define how your company’s money is spent or received. Each category can be further broken down into several categories.

What is general and ledger?

A general ledger represents the record-keeping system for a company’s financial data with debit and credit account records validated by a trial balance. The general ledger provides a record of each financial transaction that takes place during the life of an operating company.

How long are books of accounts maintained?

6 yearsBooks should be maintained for a period of 6 years from the end of the relevant year. Every company has to maintain books of accounts, at the registered office or any office that board of directors may decide.

What are the two major types of books of accounts?

Next Lesson: Cash Book 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.

Who can inspect books of accounts?

Inspection of Book of Accounts The Board of Directors of the company have rights to inspect the book of accounts and other books and papers of a company. However, in case of inspection of records of a subsidiary company, it can be done only by a person authorised by the Board of Directors.

How do I register a book of accounts?

For freelancers, you will need the following to create and register your book of accounts.2 copies of BIR Form-1905.BIR Certificate of Registration photocopies.Books of accounts including general journals and general ledger. This also includes your cash disbursement and cash receipt journal.

What are the different books of accounts?

Books of Accounts for Businesses Engaged in Sales of Goods or PropertiesGeneral journal.General ledger.Cash receipt journal.Cash disbursement journal.Sales journal.Purchase journal.

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.

Which of the following is a real account?

Examples of Real Accounts The real accounts are the balance sheet accounts which include the following: Asset accounts (cash, accounts receivable, buildings, etc.) Liability accounts (notes payable, accounts payable, wages payable, etc.) Stockholders’ equity accounts (common stock, retained earnings, etc.)