Commercial Books in Egyptian Trade Law

Commercial books are documents that record the trader's operations from income, expenses, rights, liabilities, and these records show his financial position and the condition of his trade. (True/False)

Trade laws in various countries have imposed an obligation on traders to keep books, and the legislation is consistent in determining the books that must be held. (True/False)

According to the Egyptian Trade Law, the nature and description of the books that the trader is obliged to hold are specified. (True/False)

The main aim of every business is to incur losses. (True/False)

Profit is defined as the surplus of Expenditure over Income. (True/False)

According to the Trade Act, any trader with a capital of more than 20,000 pounds is required to hold the Commercial books required by the nature of his trade, including the journal and inventory books.

The journal is used to record all the trader transactions related to his trade such as sale, purchase, borrowing, payment, and dealing with banknotes, commercial papers, or goods in a daily basis.

The inventory book includes the quantity and details of the goods held by the trader at the end of the fiscal year, attached by a copy of the balance sheet and the profits and losses account.

The legislator has imposed on the trader to hold at least two books: the journal and the balance book.

The details of the goods available with the trader at the end of the financial year can be recorded in separated books or statements, which shall be considered a supplementary part of the original inventory book.