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Accounting records

Updated: Aug 20, 2021

Generically speaking. accounting records are all those books of account kept by a business, together with the various invoices, receipts and other documentary evidence relating to them. Companies enjoying the privileges accorded them by the Companies Act 1948 nd subsequent legislation affecting that have certain defined legal obligations rning both the records that must be kept and the length of time for which they are to be kept. Basically these requirements are such as to ensure that proper annual accounts can be prepared, i.e. a profit and loss account and a balance sheet. There are, however, specific regulations which require the records to show: (1) details of all monies received or spent and the reasons therefor; (2) details of all assets and liabilities; (3) proper stocktaking lists from which the stock figure is derived; (4) with the exception of everyday transactions in the retail trade, details of all goods bought and sold with the names of the vendors or purchasers. These records must be kept at the registered office of the company or another such place specified by the directors, and must be available for inspection by all officers of the company at all times. Special provisions relate to overseas subsidiaries, etc., and there are heavy penalties for default.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.