Question

As per Companies Act, $2013$ a company must prepare its books as per _________.

• A. Cash basis
• B. Accrual basis
• C. Hybrid basis
• D. Accrual basis and according to double entry system

Answer 1

The correct option is D Accrual basis and according to double entry system

As per companies act, 2013 a company must prepare its books as per accrual basis and according to double entry system.

Every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting: