Account Or Accompt - Definition - Law Dictionary Home Dictionary Definition account-or-accompt

Definition :

Account or Accompt [fr. compte, Fr., computo, Lat.], a registry of debts, credits, and charges, or a detailed statement of a series of receipts (credits) and disbursements (debits) of money-which have taken place between two or more persons. Accounts are either-(1) open, where the balance is not struck, or it is not accepted by all the parties; (2) stated, where it has been expressly or impliedly acknowledged to be correct by all the parties; and (3) settled, where it has been accepted and discharged. Stated and settled accounts may be investigated and reopened by the Court on the ground of fraud or fiduciary relationships. See SURCHARGE and FALSIFY.

Companies under the Companies Act, 1929, must keep proper books of account, and present to the company in general meeting not less than 18 months after incorporation and subsequently at least once in every year a profit and loss account and balance sheet, to copies of which shareholders of all companies, except private companies, are entitled. See ss. 122 and 131 of the Act (and for contents) s. 124. The regulations relating to Balance Sheets apply to companies registered outside Great Britain and established there; s. 347 ibid.

As to the ancient action of account at Common Law, see. 3 Steph. Com., 9th ed. 451, and Bac. Ab. 'Account.'

Prior to the (English) Judicature Act, 1873, Equity entertained suits for accounts when they were mutual, i.e. where there existed a series of expenditures on one side, and of payments on the others, and not merely one payment and one receipt, and also where the account was on one side only, but was of so complicated and intricate a nature that it could not be satisfactorily disposed of at Law, and a discovery was wanted which was material to the right of relief. But for a mere matter of set-off at Law, a suit in Equity would not be the remedy.

By the (English) Judicature Act, 1925, s. 56 [formerly the Judicature Act 1873, s. 34(3)], all causes and matters for the taking of partnership or other accounts are assigned (subject to a power of transfer) to the Chancery Division of the High Court of Justice. If the plaintiff in the first instance desires to have an account taken, the writ of summons must be endorsed with a claim that such account be taken (R. S. C., Ord. III., r. 8), and in such cases the order made must include the directions which were usual in the Court of Chancery. (Ib., Ord. XV., rr. 1, 2.)

As to the Court's power to order an account to be taken, see R. S. C., Ord. XXXIII., rr. 2-9.

By the (English) Judicature Act, 1925, see ss. 88-97, repeating s. 14 of the (English) Arbitration Act, 1889, in any cause or matter (other than a criminal proceeding by the Crown) if the question in dispute consists wholly or in part of matters of account the Court or a judge may order trial before a referee agreed upon, or an official referee.

The Statute of Limitations cannot be pleaded in bar to an open account, unless all accounts have ceased above six years. see the (English) Mercantile Law Amendment Act, 1856 (19 & 20 Vict. C. 97), s. 9.