Section 2: Merchant accounting

A document describing the accounting procedures and organisation is drawn up by the trader whenever the document is necessary for understanding the processing system and for carrying out controls. This document is kept for as long as the presentation of the accounting documents to which it relates is required.

Every trader is required to keep a daybook and a general ledger. The journal book and ledger may, at the request of the trader, be quoted and initialled, in the ordinary form and free of charge, by the registrar of the court within whose jurisdiction the trader is registered. Each book is given an identification number listed by the registrar in a special register. Documents in electronic form may take…

Movements affecting the company’s assets are recorded transaction by transaction and day by day for the daybook. All accounting records specify the origin, content and allocation of each item of data as well as the references of the supporting document. Transactions of the same nature, carried out in the same place and on the same day, may be summarised on a single supporting document. Supporting documents are filed in an…

Journal entries are recorded in the general ledger and broken down according to the chart of accounts.

The daybook and general ledger are broken down into as many subsidiary journals and subsidiary ledgers as the needs of the business require. Entries made in the journals and subsidiary ledgers are centralised at least once a month in the daybook and general ledger.

The inventory is the annual check of the existence and value of all assets and liabilities at the balance sheet date. Inventory data is kept under the conditions provided for in article L. 123-22 and organised in such a way as to justify the content and valuation method of each balance sheet item.