K Ltd. in its first year of incorporation maintained its books of account under Single Entry System of Accounting. Is it permitted under the…

According to section 128 (1) of the Companies Act, 2013, every company shall prepare books of account and other relevant books and papers and financial statement for every financial year, which give a true and fair view of the state of the affairs of the company, including that of its branch office(s) if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting. Hence, maintenance of books of account under Singly Entry System of Accounting by K Ltd. is not permitted.