Books of account
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Those books in which tli transactions of a business are recorded. The term is often prefaced by the word ‘proper’. Proper books of account are those that the law demands shall be kept by certain categories of businesses. For limited companics, proper books of account are loosely defined in the Companies Act 1985 and consist of records that enable the annual accounts to be prepared, and contain details of all receipts and payments, asset and liabilities and sales and purchases. The need for proper books of account is most apparent in a liquidation, when directors and other officers of a company may be liable in tort for not keeping sufficient records to identify various transactions and parties thereto.
Proper books are also required to be kept by any by any trader for the same reason, should he become bankrupt. The law also requires that the books and records kept shall be retained for a certain period. The period varies with the type of business, but it is well to remember that the tax authorities have power, in circumstances where failure to disclose is suspected, to go back many years and, if proper records are not available to prove otherwise, to make arbitrary assesments of taxable income with the onus on the person charged to provide evidence that such assesments are not correct.
Reference: The Penguin Business Dictionary, 3rd edt.
More definitions
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >