Question

which basis of accounting system is recognized under the companies act 2013? explain

Answer 1

accrual basis of accounting system recognized in companies act 2013

Answer 2

Solution :-

Under the Companies Act 2013 (Section 128), Books of Accounts shall be kept on accrual basis and according to Double Entry System of Accounting. The Books of Accounts and relevant papers may be kept at other place in India as BOD may decide. A seven days notice shall be given to Registrar of Companies for communication of new address. The accounts can be kept in electronic mode. The Books of Accounts shall be open for Director's inspection at registered office or other place during business hours. The copies of financial information maintained outside India shall be produced for inspection. The Books of Accounts of the company shall be kept in good order for a period of 8 Financial Years and in case investigation is ordered by CG, it may direct a longer period.