Statutory
Books.

166

SECRETARIAL PRACTICE
the accountant for information to guide him in his actions
and to justify him in his decisions, and for this reason the
sercetary is primarily concerned with the results of the
accountant’s work, but only secondarily with the means
used to obtain the results.

Proper books of account must be kept by all companies.
Indeed a statutory obligation is now imposed by s. 122 to
keep proper books of account relating to (a) all sums of money
received and expended and the matters in respect of which
the receipt and expenditure takes place, (b) all sales and
purchases of goods and (c) the assets and liabilities of the
company. The books must be kept at the registered office
of the company or at such other place as the directors think
fit and must at all times be open to inspection by the directors.

The books kept pursuant to this section will vary according
to the circumstances of the case; but must be so kept as to
enable the annual balance sheet to be framed in accordance
with the statutory provisions (see Chapter XVI). They will
include the cash book, containing the banking accounts in
detail. In large concerns, which frequently have more than
one banker in England, and conceivably one or more banking
accounts in countries with which they trade, there may be
more than one cash book. In any case the procedure of
book-keeping will be the same, and the result should be to
provide the secretary at intervals with a return showing the
balance according to the banker’s pass book, the cheques
issued but not cleared, the lodgments made but not credited,
and finally the balance available for actual drawings. In
large concerns, or concerns working with a small margin of
free capital, this should be prepared daily. Such a return
will, in case of need, also show amounts standing on deposit
account, overdrafts, and balances at foreign bankers available
for transfer to the main banking account. It will also be
necessary for the secretary of any concern trading largely with
foreign countries to have a daily return of the rates of exchange
between England and the countries in which his company
buys or sells. Until recently rates of exchange were so
stabilised that this was not of so great importance, but at
present (and so far as can be seen, for some time to come)
it is and will be very necessary in the circumstances mentioned.

With such returns as these the secretary will be able to
forecast financial requirements. He will probably require to
see that sufficient money is accumulated for the payment of
salaries, and (in the case of a manufacturing concern) wages,
and raw materials. He will be provided with a list of re-
curring commitments, such as rents, rates. water, gas. etc..