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Books of Account and Books & Papers (Section 2(13) & 2(12))

## Section 2(13) – 'Books of Account'

'Books of Account' is an inclusive definition. It includes records maintained in respect of:

1. All sums of money received and expended by the company and the matters in relation to which the receipts and expenditure take place.

2. All sales and purchases of goods and services by the company.

3. The assets and liabilities of the company.

4. Items of cost as may be prescribed under Section 148 in case of a company that belongs to any class of companies specified under that section (i.e., Cost Records for companies covered under cost audit).

## Section 2(12) – 'Book and Paper' / 'Book or Paper'

This broader term includes:

  • Books of Account
  • Deeds
  • Vouchers
  • Writings
  • Documents
  • Minutes
  • Registers maintained on paper or in electronic form

### Pedagogical Distinction

'Books of Account' [Sec. 2(13)]'Book and Paper' [Sec. 2(12)]
Narrower – relates to financial transactionsWider – includes all records, registers, minutes
4 specified categoriesOpen-ended, residuary
Forms the base for financial statementsIncludes books of account + everything else

Think of 'Books of Account' as a subset of 'Books and Papers'.

Worked example

### Example 1

Example: Which of the following form part of 'Books of Account' under Sec. 2(13)?

(a) Sales register

(b) Minutes of Board meeting

(c) Cost records under Sec. 148

(d) Share transfer deeds

Solution: (a) and (c) are 'Books of Account'. (b) Minutes and (d) deeds are 'Book and Paper' under Sec. 2(12) but not 'Books of Account'.

⚠️ Common exam mistakes

  • Treating 'Books of Account' and 'Books and Papers' as synonyms.
  • Forgetting that cost records under Sec. 148 are part of Books of Account for specified classes of companies.
  • Excluding electronic records from the definition — both definitions cover electronic/paper form.
Bare-Act text Section 2(12) & 2(13) · Companies Act, 2013 · click to expand
Section 2(13): 'books of account' includes records maintained in respect of — (i) all sums of money received and expended by a company and matters in relation to which the receipts and expenditure take place; (ii) all sales and purchases of goods and services by the company; (iii) the assets and liabilities of the company; and (iv) the items of cost as may be prescribed under section 148 in the case of a company which belongs to any class of companies specified under that section. Section 2(12): 'book and paper' and 'book or paper' include books of account, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form.
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