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Section of accounting

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Yogender Singh

31 Points Posted on 11 January 2020

accounting is done under which section? can anyone tell?

Replies (4)

Quick Summary

This discussion clarifies that there isn't one single section in the Companies Act or other legislation that dictates precisely how accounting must be done. While certain acts may require specific record-keeping for particular purposes, accounting principles and standards are generally followed for uniformity rather than being mandated by a singular legal section.

CA SANDESH MAHIPAL

Practicing in GST and MSME

1149 Points Posted on 11 January 2020

Generally accounting is done based on generally accepted accounting principles and practices. For bringing uniformity, accounting standards have also been introduced.
Hope query is resolved or please elaborate the query.

Regards

Yogender Singh

31 Points Posted on 11 January 2020

What I meant with the question was , is there any specific section in companies act or any other acts which exclusively says that accounting is done in such a manner or what points are to be considered while doing accounting just like section 10 of "exemption" of income tax act or any other sections of any other acts?

CA SANDESH MAHIPAL

Practicing in GST and MSME

1149 Points Posted on 11 January 2020

No, there is no such type of section in any act which says accounting is to be done this way. Some acts say only for keeping accounts in the specified manner for specific purpose only.