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The trader is obliged to keep commercial books
It will be observed that duty applies to all traders, provided that their capital exceeds BD10,000 regardless whether the trader is
local or foreigner, and the notwithstanding the legal nature of the trader whether he is a natural person or a company.
Functions of Commercial Books :-
Evaluation of commercial status
Creating evidence of proof for traders
Basis for financial evaluation
Reference for Bankruptcy cases
1. Basis Journal book :
The trader shall enter all the commercial transactions and all
his personal withdrawals on a daily basis and in detail . (
month by month )
All transactions related to the trader and practiced by him,
like selling, buying, receiving or paying debts , etc...
All expenses relater to the trader like his expenses incurred
by him and his family.
Compulsory commercial
books
2. Ancillary Journal books :
The legislator permitted the trader to enter the details of his
different commercial transactions, on a daily basis then
transfer the entries to the basis journal book .
However, if the entries in the ancillary journal books
remained there without being transferred to the basis journal
book, as the law requires, that ancillary journal books
considered a basic journal book .
Compulsory commercial
books
3. General Ledger book :
• Accounting Operations
• The trader able to make an inventory of all movable and
immovable property commercial papers
4. True and original copies of relevant documents :
The trader obliged to maintain true and original copies of all
correspondence and other documents related to his trade .
Supporting documents for the entries made
A basis for comparison and verification
Compulsory commercial
books
1. Draft commercial books :
Trader is forbidden by law to leave any blanks or delete or
strike off any entry made if any of the commercial books he
obliged to keep, or to insert entries between the lines or write
on the margins of these books.
Hence: Eliminating the risk of incorrect entries in these books.
2. Cash book :
The movement of incoming and outgoing cash transactions .
Hence: Ascertains the liquidity status in the organization .
Optional commercial books
3. Commercial papers book :
A registers for such papers, either individually or collectively,
depending on the volume and nature of the instruments .
Hence: Consideration their maturity dates .
4. Store book :
The movement of incoming and outgoing goods .
The legislator in Bahrain when the Minister of Industry and
Commerce was authorized to exempt companies and banks
from book-keeping of commercial books ( electronically
maintaining their accounts ) .
Optional commercial books