Who are responsible for maintaining the books of accounts of a company ?
The managing director or manager; If the company has neither a managing director nor manager, then every director of the company; Every officer and other employee who has been authorised and to whom responsibility to maintain the books has been alloted by the Board of Directors. If any of the persons referred to above fails to take all reasonable steps to maintain proper books of accounts or has by his own willful act been the cause of any default by the company in this respect, he is punishable with imprisonment up to six months or with fine which may extend to Rs. 1,000 or with both. However, no person can be sentenced to imprisonment unless it is proved that the contravention was committed by him wilfully. Preparation of Balance Sheet and Profit and Loss Account The company has to prepare its balance sheet and profit & loss account from the books of account maintained by it. Every Balance Sheet of a company must give a true and fair view of the state of affairs of the company as at
