Key Definitions - Books of Accounts & Books or Paper
## Key Definitions under Section 2(13) and 2(12)
Before studying the substantive provisions on accounts, you must master two foundational definitions.
### 1. Books of Accounts [Sec. 2(13)]
"Books of Accounts" includes records maintained with respect to:
#
Item recorded
(a)
All sums of money received and expended by the company, and matters in relation to which the receipts and expenditure take place
(b)
All sales and purchases of goods and services by the company
(c)
The assets and liabilities of the company
(d)
The items of cost as may be prescribed u/s 148 (for specified class of companies)
### 2. Books and Paper / Books or Paper [Sec. 2(12)]
This is a wider term than Books of Accounts. It includes:
Books of Accounts (BOA)
Deeds
Vouchers
Writings
Documents
Minutes
Registers
Maintained on paper or in electronic form.
> Memory tip: "Books or Paper" is the umbrella; "Books of Accounts" is one item under that umbrella.
Worked example
### Example 1
Q. A vendor invoice issued to XYZ Ltd. is preserved by the company. Is it a Book of Account or Books and Paper?
A. A vendor invoice is a voucher — it is part of "Books and Paper" under Sec. 2(12), but it is not itself a Book of Account. However, entries arising from such vouchers (purchases) are recorded in the Books of Accounts under Sec. 2(13)(b).
⚠️ Common exam mistakes
Treating "Books of Accounts" and "Books and Paper" as synonyms — Books and Paper is broader and includes minutes, deeds and registers in addition to BOA.
Forgetting that the definition of Books of Accounts uses the word 'includes' — the list is not exhaustive.
Bare-Act text Sec. 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.