(108)-THE ACCOUNTING RECORDS OF LIMITED COMPANIES

The Accounting Records of Limited Companies

There is a legal requirement for companies to keep accounting records which are sufficient to show and explain the company’s transactions. The records should:

• Disclose the company’s current financial position at any time.
• Contain:
  1. Day to day entries of money received and spent.
  2. A record of the company’s assets and liabilities.
  3. Where the company deals in goods. A statement of stock held at the year end, and supporting stocktaking sheets. With the expectation of retail sales, statements of goods bought and sold which identify the seller and buyer of those goods.
• Enable the directors of the company to ensure that the final accounts of the company give a true and fair view of the company’s profit or loss and balance sheet position.

Registers: the statutory books

A company must also keep a number of non accounting registers. These include:

• Register of members
• Register of shareholders 3 per cent interests
• Register of charges and a register of debenture holders
• Register of directors and company secretaries
• Register of directors interests

These registers are known collectively as the statutory books of the company.

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