Accounts Book Maintenance
Books of accounts/accounting records have to be maintained if the gross receipts are more than Rs. 1,50,000 in 3 preceding years for an existing profession. This also applies to a newly set up profession whose gross receipts are expected to be more than Rs. 1,50,000.
Specified books of account as per Rule 6F
- Cash book
A record of day to day cash receipts and payments which shows cash balance at the end of the day or at best at the end of each month and not later.
- A journal according to mercantile system of accounting
A journal is a log of all day to day transactions. It is a record, in accounting terms, where total credits equal total debits, when we follow the double entry system of accounting ie each debit has a corresponding credit and vice versa.
- A ledger where all entries flow from the journal, has details of all accounts, this can be used to prepare the financial statements.
- Photocopied of bills or receipts issued by you which are more than Rs 25
- Original bills of expenditure incurred by you which are more than Rs 50
Following are the additional requirements in case of a person carrying on medical profession — physicians, surgeons, dentists, pathologists, radiologists, etc.
- Daily cash register with details of patients, services rendered, fees received and date of receipt
- Details of stock of drugs, medicines, and other consumables used
These books should be maintained at the Head Office or at each of the offices.