Co-operative society and accounting system.

Cooperative accounting is the applications of financial accounting principles, concepts and policies to cooperatives in order to ascertain its financial position, promote accountability, efficient management and ensure viable operations of co-operative financial resources.

Furthermore, the cooperative law makes the keeping of proper sets of accounting records and the preparation of the final accounts compulsory for every registered cooperative society and sets of information that must be disclosed in the final account.

ACCOUNTS AND RECORDS.

1.MEMBER’S PASSBOOK

Member’s passbook is opened for every member which serves as a personal account on which all transactions between a member and the society are recorded. Below is the front- and back-page sample of members passbook.

Sample of members; passbook showing front page and back page

2. ANALYSIS BOOK

Analysis book is use for recording members’ contributions, loan disbursed and repayment, membership withdrawal, fine and other incomes on monthly basis. Also, this book helps to analyse the transaction on a monthly basis. This book help cooperative to always spread open in front of members at any general meeting of the society.

Sample of Analysis book were various income received by cooperative are analysed.

3. PERSONAL LEDGER

Personal ledger helps to record member’s contributions of shares, savings, deposits, withdrawals, loan and refunds. In addition, the entries into this book are from the individual’s entries in the analysis book which is also entered in the passbook. With proper recording of transaction, individual cash balances can be seen at a glance.

Sample of personal ledger that shows the total contribution by each member and also their balances.

4. LOAN REGISTER

Loan register is a source document containing information regarding all loans granted at any time. Such information includes membership personal number; member identity number; committee meeting minute number; cheque number. Also, includes amount authorized and approved; amount applied for and granted; date of approval and refund; period of the loan.

Sample of Loan register

5. CASH RECEIPT

Cash receipt helps to record all money received in cash or in cheque. Also, it is financial transactions used as supporting evidence that money have been received on behalf of the society. Moreover, all receipts must be serially numbered and used in that order.

Sample cash receipt used in cooperative society

CONCLUSION

The cooperative law all over the world made the keeping of proper books of accounting records compulsory. In the light of the above, seeking expert help from those with practical experience become crucial in cooperative accounting system. If you require the best way to manage a co-operative society is to buy co-operative book in Amazon.com.

Ojeaburu Friday
Ojeaburu Friday

Ojeaburu, Friday (ACA, BSc, MSc, PhD) is a seasoned Chartered Accountant with over 14 years accounting experience. He has experience in corporate accounting, financial accounting, financial management, financial audit, public sector accounting, environmental accounting, entrepreneurial accounting, Cv writing, business plan writing, online coaching, research writing etc.

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