Sunrise Enterprises Limited is planning to maintain its books of account using the Single Entry System. Is such a method of accounting permissible…

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. These books of account should give a true and fair view of the state of the affairs of the company, including that of its branch office(s). These books of account must 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 Sunrise Enterprises Limited is not permitted.