Relation of accountancy with companies act,1956
Avinash Soni
(Querist) 03 September 2011
This query is : Resolved
how Accounts is related to the Companies Act, 1956, ???
What is the Relation between the Both the terms?????????
Sailesh Kumar Shah
(Expert) 03 September 2011
your query is not clear. However you see section 209 of the companies act,1956;which deals with booka of accounts.
prabhakar singh
(Expert) 03 September 2011
yes as the saying goes "aap likhen aur moosa banche"Mr.Shah has rightly remarked your query is not clear.
Avinash Soni
(Querist) 03 September 2011
i want to know that how accounts is related to the Companies Act 1956?, please tell me about the Sections of the Companies act which make the effect on the Accounts of the Companies?
Sailesh Kumar Shah
(Expert) 03 September 2011
Mr. Prabhakar Singh
Can i know meaning of
"aap likhen aur moosa banche"
Avinash Soni
(Querist) 03 September 2011
"aap likhen aur moosa banche" i want to Know also abt this ?
Sailesh Kumar Shah
(Expert) 03 September 2011
See Section 209 to 223 of the Companies Act,1956.
Avinash Soni
(Querist) 03 September 2011
only these two section co relates both of the term.
prabhakar singh
(Expert) 03 September 2011
Dears!@Mr.Shah &Mr.Soni
Its an idiom for expressions not intelligible!
Avinash Soni
(Querist) 03 September 2011
sorry, i will do study about all tese sections.
Sankaranarayanan
(Expert) 03 September 2011
Section 209 of company act 1956 is fixed the following rules
209. Books of account to be kept by company. 1[
(1) Every company shall keep at its registered office proper books of account with respect to-
(a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;
(b) all sales and purchases of goods by the company; 2[
(c) the assets and liabilities of the company; 3[ and]
(d) 3[ in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilization of material or lab our or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particulars in the books of Account:] Provided that all or any of the books of account aforesaid may be kept at such other place in India as the Board of directors may decide and when the Board of directors so decides, the company shall, within seven days of the decision, file with the Registrar a notice in writing giving the full address of that other place.]
(2) Where a company has a branch office, whether in or outside India, the company shall be deemed to have complied with the provisions of sub- section (1), if proper books of account relating to the
1. Sub. by Act 65 of 1960, s. 60, for sub- section (1).
2. The word" and" omitted by Act 31 of 1965, s. 20 (w. e. f. 15- 10- 1965 ).
3. Ins. by s. 20, ibid. (w. e. f. 15- 10- 1965 ).
transactions effected at the branch office are kept at that office and proper summarized returns, made up to dates at intervals of not more than three months, are sent by the branch office to the company at its registered office or the other place referred to in subsection (1).
(3) 1[ For the purposes of sub- sections (1) and (2), proper books of account shall not be deemed to be kept with respect to the matters specified therein,-
(a) if there are not kept such books as are necessary to give a true and fair view of the state of affairs of the company or branch office, as the case may be, and to explain its transactions; and
(b) if such books are not kept on accrual basis and according to the double entry system of accounting.]
(4) 2[ 2[ The books of account and other books and papers shall be open to inspection by any director during business hours. 3[
(4A) 4[ The books of account of every company relating to a period of not less than eight years immediately preceding the current year 4[ together with the vouchers relevant to any entry in such books, of account] shall be preserved in good order: Provided that in the case of a company incorporated less than eight years before the current year, the books of account for the entire period preceding the current year 5[ together with the vouchers relevant to any entry in such books of account] shall be so preserved.]
(5) If any of the persons referred to in sub- section (6) fails to take all reasonable steps to secure compliance by the company with the requirements of this section, or has by his own willful act been the cause of any default by the company thereunder, he shall, in respect of each offense, be punishable with 6[ imprisonment for a term. which may extend to six months, or with fine which may extend to one thousand rupees, or with both]: Provided that in any proceedings against a person in respect of an offense under this section consisting of a failure to take reasonable steps to secure compliance by the company with the requirements of
1. Subs. by Act 31 of 1988, s. 29 (w. e. f. 15- 6- 1988 ).
2. Subs. by Act 31 of 1965, s. 20, for sub- section (4) (w. e. f, 15- 10- 1965 ).
3. The brackets and letter" (a)" and (clauses (b), (c) and (d) omitted by Act 41 of 1974, s. 20) (w. e. f. 1- 2 1975 ).
4. Ins. by Act 65 of 1960, s. 60.
5. Ins. by Act 31 of 1965, s. 20 (w. e. f. 15- 10- 1965 ).
6. Subs. by Act 65 of 1960, s. 60, for" fine which may extend lo one thousand rupees"
this section, it shall be a defence to prove 1[ that a competent and reliable person was charged with the duty of seeing that those requirements were complied with and was in a position to discharge that duty: 2[ Provided further that no person shall be sentenced to imprison- ment for any such offence unless it was committed wilfully.]
(6) The persons referred to in sub- section (5) are the following, namely:-
(a) where the company has a managing agent, 3[ secretaries and treasurers or managing director or manager], such managing agent, 3[ secretaries and treasurers or managing director or manager] 4[ and all officers and other employees and agents[ as defined in sub- section (6) of section 240 but excluding bankers, auditors and legal advisers] of such managing agent or secretaries and treasurers];
(b) where such managing agent or secretaries and treasurers are a firm, every partner in the firm;
(c) where such managing agent or secretaries and treasurers are a body corporate, every director of such body corporate; 5[
(d) where the company has neither a managing agent nor 6[ secretaries and treasurers nor managing director nor manager, every director of the company]; 4[ and]
(e) 4[ whether or not a company has a managing agent or secure- tares and treasurers, every officer and other employee and agent (defined as aforesaid) of the company.]
(7) If any person, not being a person referred to in sub- section (6), having been charged by the managing agent, secretaries and treasurers, 2[ managing director, manager] or Board of directors, as
1. The words" that he had reasonable ground to believe, and did believe", omitted by Act 65 of 1960, s. 60.
2. Ins. by s. 60, ibid.
3. Subs. by s. 60, ibid, for" or secretaries and treasurers".
4. Ins. by Act 31 of 1965, s. 20 (w. e. f. 15- 10- 1965 ).
5. The word" and" omitted by s. 20, ibid. (w e. f. 15- 10- 1965 ).
6. Subs. by Act 65 of 1960, s. 60, for" secretaries and treasurers, every director of the company".
the case may be, with the duty of seeing that the requirements of this section are complied with, makes default in doing so, he shall, in respect of each offense, be punishable with 1[ imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both].
Inspection of books of account, etc., of companies.
Raj Kumar Makkad
(Expert) 03 September 2011
not only section 209 but till 223 are relevant for companies accounts.
M/s. Y-not legal services
(Expert) 04 September 2011
You can't cover your answer under those two sections only.. Just study over all.. And you can clear your self..
