Dear Colleague,
Under the Provisions of the Factories Rules 1963 of Gujarat, rule 76 deals with " Accounts" and the books of accounts to be audited by registered auditor and a balance sheet also to be prepared. This has to be placed in the meetings of Canteen Managing Committee for review and discussion. The accounts documents are to be shown to the Inspector as and when demanded for inspection. This is normally a separate account head / code in the books of factory accounts to book the type of expenses incurred in running the Industrial Canteen.
The accounts books, balance sheet are stipulated to be maintained to ascertain that there are
Food, drink and other items, served in the canteen shall be sold on non-profit basis and in computing the charge to be made for such food, drink or other items the following shall not be taken into consideration, namely;
(a) the rent for the land and building.
(b) the depreciation and maintenance charges of the building and equipment provided for the canteen,
(c) the cost of purchase, repairs and replacement of equipment including furniture, crockery, cutlery, and utensils;
(d) the water charges and other charges incurred for lighting and ventilation; and
(e) the interest on the amounts spent on the provision and maintenance of furniture and equipment provided for the canteen;
(f) the cost of fuel required for cooking or heating food stuffs or water; and
(g) The wages of the employees serving in the canteen and the cost of uniforms, if any, provided to them
In broader sense it is to ascertain whether the Industrial Canteen is run on NON PROFIT basis. Normally the Accountants will know how to keep such books. The Auditor who audits your company accounts will also help in preparing a simple balance sheet of canteen also and based on these documents the Canteen Management Committee meetings review and also Inspectors under Factories Act also inspects. This is the Books of accounts for your easy reference.