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..