REQUIREMENT OF KEEPING BOOKS OF ACCOUNT SECTION 128 - Companies Act, 2013
Maintenance of books of account would mean records maintained by the company to record the specified financial transaction. It has been specifically provided that every company shall keep proper books of account. This section specifies the main features of proper books of account as under –
(i) The company must keep the books of account with respect to items specified in clauses (i) to (iv) of sub-section 2(13) of the Companies Act, 2013 hereinafter referred as Act, which defines “books of account”. (ii) The books of account must show all money received and expended, sales and purchases of goods and the assets and liabilities of the company. (iii) The books of account must be kept on accrual basis and according to the double entry system of accounting. (iv) The books of account must give a true and fair view of the state of the affairs of the company or its branches.