The law on the duty to prepare, lay and deliver accounts.

At one time, the keeping of accounts by a company was considered merely as the domestic concern or an in-house affair of the company and its stakeholders. But that is no more because the modern legislation has been secured to expose the financial affairs of a company. Publications of the accounts sis now insisted upon to provide shareholders with all the necessarily information of the financial position of the business in a form that they can understand and also due to the fact that it is a matter of public importance for large companies.

The author of this article therefore tries to expose the accounting records that must be kept by a company. Under the companies Act, records must be sufficient to show and explain the company’s transactions. This means that such kind of accounts must disclose with reasonable accuracy, at any time, the financial position of the business. They must also enable the directors to ensure that any balance sheet or profit and loss account prepared by them complies with the requirements of the companies Act.

Accounting records must be kept by the company’s registered office or at such other place as the directors may think fit, and must at all times be open to inspection by company officers. In respect of each accounting reference period of a company, the directors must lay before the company in the general meeting a copy of the profit and loss account, the balance sheet, auditors’ report and the directors’ report. These are expected give a fair view of the business transactions.