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In India, which statute requires companies to maintain accounting records under the double entry system?
ASection 25 of the Indian Contract Act, 1872
BSection 30 of the Indian Partnership Act, 1932
CSection 128(1) of the Companies Act, 2013
DSection 16 of the Sale of Goods Act, 1930
Answer & Solution
Correct answer: C. Section 128(1) of the Companies Act, 2013
1. Maintaining records under the double entry system is compulsory for certain organisations.
2. The textbook cites Section 128(1) of the Indian Companies Act, 2013 as the provision that binds companies.
3. Such organisations must maintain accounts only under the double entry system.
4. Other organisations may keep records according to the requirements and desires of the proprietors and accountants, which is how incomplete records arise.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", §1.1_
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