I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART F: PREPARING BASIC FINANCIAL STATEMENTS 

 

330

 

1.2 The accounting records of limited companies 

Companies are normally required by law to keep accounting records which are sufficient to show and 

explain the company's transactions. To be sufficient, the records would normally have the following 

qualities. 

(a) 

Disclose the company's current financial position at any time 

(b) Contain: 

(i) 

Day to day entries of money received and spent 

(ii) 

A record of the company's assets and liabilities 

(iii) 

Where the company deals in goods: 

(1) 

A statement of inventories held at the year end, and supporting inventory count 

records  

(2) 

With the exception of retail sales, statements of goods bought and sold which 

identify the sellers and buyers of those goods 

(c) 

Enable the managers of the company to ensure that the final accounts of the company give a true 

and fair view of the company's profit or loss and statement of financial position 

The detailed requirements of accounting records which must be maintained will vary from country 

to country.