accounting concept

Cooperative Accounting

by Friday Ojeaburu | Jan 6, 2024 | Accounting Articles

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.

In other words, the accounting system and bookkeeper accurately record and report the cooperative’s daily business transactions.

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.

Moreover, the cash books and receipts are source documents, while income and expenditure accounts and balance sheets are final accounts.

ACCOUNTS AND RECORDS OF COOPERATIVE ACCOUNTING.

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. Moreover, below is the front- and back-page sample of members passbook.

Sample of members; passbook showing front page and back page of document used in cooperative accounting.

2. ANALYSIS BOOK

Also, analysis book is use for recording members’ contributions, loan disbursed and repayment, membership withdrawal, fine and other incomes on monthly basis. However, this book helps to analyse the transaction on a monthly basis. In addition, 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 analyzed. It is one key document used in cooperative

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. it is one key document used in cooperative

4. LOAN REGISTER

Obviously, Loan register is a source document containing information regarding all loans granted at any time. In addition, 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 used as a key in cooperative accounting.

5. CASH RECEIPT

Also, 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.

6. CASH BOOK

Moreover, a cash book is a financial record that shows all cash receipts and disbursements, including bank deposits, withdrawals, and balances.

Cask book used in cooperative accounting

7. INDIVIDUAL MEMBERS’ CONTRIBUTION

Additionally, in co-operative management, recording all transactions and producing financial statements on time is important. Clearly, these statements are the output based on each member’s contributions. By tabulating each member’s share and savings contributions in the individual contribution table, it’s easy to see the breakdown of each member’s contributions. Column A shows the fraction of each member’s share contribution, while column B shows their savings contribution.

8. GENERAL LEDGER

A general ledger is a cooperative financial record-keeping system that uses debit and credit account records. It can validate a trial balance, such as bank charges, telephone, and travelling expenses and asset account.

general ledger used in cooperative accounting

9. INCOME AND EXPENDITURE ACCOUNT

The Income and Expenditure Account summarises all the income and expenses incurred during the current accounting year. Its primary objective is to calculate the surplus or deficit. However, cooperatives only declare surplus or deficit, not profit or loss, since they are exempt from paying taxes.

income and expenditure account, cooperative accounting

10. STATEMENT OF FINANCIAL POSITION

A balance sheet is a financial statement that shows a company’s assets, liabilities, and equity on a specific date. It summarises the business’s overall value at a particular time, like a snapshot.

statement of financial position, Cooperative accounting

11. CASH FLOW STATEMENT

In addition, a cash flow statement is a financial record that presents a company’s incoming and outgoing cash for a specific period. This document shows the cash flows, the money that comes in and goes out of the business. Cooperative uses these statements to keep track of, document, monitor, and report these transactions.

cash flow statement, cooperative accounting.

CONCLUSION

Therefore, cooperative laws around the world require the maintenance of proper accounting records. However, seeking assistance from experts with practical experience can help improve your cooperative accounting system. Furthermore, if you are looking for the best way to manage a cooperative society, consider purchasing a revised cooperative book from our book-shop or at Amazon.com.

Download free Excel financial model designed for cooperative accounting management.

060124posted-1 Download

If you are facing any issues related to the financial model, please feel free to contact me for consultancy services.

Alternative Dispute Resolution in Nigeria.

by admin | Sep 15, 2023 | Accounting Articles

Top Alternative Dispute Resolution (ADR) in Nigeria.

Alternative Dispute Resolution in Nigeria is practiced within Nigeria at the institutional and individual level with and without the involvement of the court system.

The list of institutions that practiced ADR in Nigeria, namely, The Chambers of Commerce, private enterprises, industry groups etc. In the case of individuals are judges, specially trained practitioners (i.e. arbitrators, mediators, accountants), elders, traditional rulers, chiefs, religious leaders.

The practitioners involved in ADR is industry-specific that have technical expertise in specific areas like environmental disputes, labour disputes, family law, etc.

Furthermore, the current Nigerian laws have sufficient provisions that have addressed Alternative Dispute Resolution in Nigeria and the methods in resolving disputes.

These provisions of the laws are discussed below.

(1) The 1999 Constitution

The Constitution is the supreme law of the land that endorses arbitration. Section 19(d) of the Constitution states that part of Nigeria’s foreign policy objective is respect for international law and treaty obligations. Nigeria also seeks for settlement of international disputes by negotiation, mediation, conciliation, arbitration and adjudication.

(2) Arbitration Laws

Nigeria, like other progressive countries, has subscribed to many international ADR Laws and Rules. The United Nations Commission on International Trade Law (UNCTRAL Model Law of 1985) and UNCITRAL Arbitration Rules domesticated in Nigeria under the Arbitration and Conciliation Act (ACA).

(3) Other Federal Acts

Nigerian body of laws is replete with several statutes that provide for arbitration or other ADR mechanisms. However, a fewer list is mentioned below of the law and the applicable sections:

Sections 11 and 30 (4) of the Matrimonial Causes Act (Cap. M7 LFN 2004). This section talks about reconciliation between the husband and wife or parties. As they can get the Marriage conciliator to take an oath of secrecy to settle out of court.
section 2, Consumer Protection Council Act, (Cap C25 LFN 2004),
sections 29 and 33, of the Environmental Impact Assessment (EIA) Act (Cap. E12 LFN 2004),
Sections 4, 8, 9, 20, 22 of the Trade Disputes Act (Cap. T8 LFN 2004),
section 11 of the Petroleum Act(Cap. PI0 LFN 2004),
section 26 of the Nigerian Investment Promotion Commission Act, (Cap. N17 LFN 2004);
section 27 of the Public Enterprises (Privatization and Commercialization) Act, (Cap. P38 LFN 2004),
section 22 of the Nigerian LNG (Fiscal Incentives, Guarantee and Assurance) Act (Cap. N87 LFN 2004),
Section 49 of the Nigerian Co-operative Societies Act (Cap. N98 LFN 2004);
section 5 of the National War College Act (Cap N82 LFN 2004);
sections 3 and 6 of the National Boundary Commission, Etc. Act; (Cap. N10 LFN 2004),
section 3 of the Advisory Council on Religious Affairs Act (Cap. A8 LFN 2004);
section 4 of the National Office for Technology Acquisition and Promotion Act( Cap. N62 LFN 2004),
section 4 of the Nigerian Communications Commission Act (Cap. N97 LFN 2004) etc.

(4) Court Laws and Rules

Lastly, Court laws and rules govern procedures and proceedings for the conduct of business in the court.

Top 55 Balance Sheet Keywords

by admin | Sep 15, 2023 | Accounting Articles

Top 55 balance sheet keywords are available below.

1. Account Receivables

2. Account Payables

3. Accrual

4. Asset

5. Accumulated Depreciation

6. Bank Account

7. Bank Overdraft

8. Bill Payable

9. Cash and Cash Equivalents

10. Computer Software

11. Copyrights

12. Current Asset

13. Current Liabilities(within 1year)

14. Current tax payable( Unpaid Tax)

15. Customer Lists.

16. Deferred tax

17. Development Cost

18. Dividend payable(Unpaid Dividend)

19. Equity

20. Furniture and Fixtures

21. Goodwill

22. Intangibles Noncurrent Asset

23. Inventories

24. Investments in Associates

25. Investments in Equity Instruments

26. Land and building

27. Liabilities

28. Long-term Asset.

29. Long-term Borrowings

30. Long-term Provisions

31. Mortgage Payable

32. Motion Picture Firm

33. Net Assets

34. Net Worth

35. Non-Controlling Interest

36. Non-current Liabilities (over one year)

37. Non-current Asset

38. Notes Payable

39. Other Components Equity

40. Other Current Assets

41. Other Intangible Asset

42. Patents

43. Prepaid

44. Property, Plant and Equipment

45. Retained Earnings

46. Salary Payable

47. Share Capital

48. Share part of Long Term Borrowings

49. Short Term Borrowings (Short-term debt)

50. Short term provisions

51. Tangible Non-current Asset

52. Trade Mark

53. Total Assets

54. Total current liabilities

55. Total Non-current liabilities

Moreover, to get more Top 55 balance sheet keywords, get in touch with us

Introduction

Top 35 Source Documents in Accounting are relevant to help accountant in their job. Also, it is a document that serves as proof of transaction that is available in apps that provide such services.

1.Purchase Order

The buyer sends this to the vendor. They will then outline exactly what the order should contain and when it should arrive.

2. Sales Invoice

This is a process for managing account receivables. When the seller gives out goods, they will provide a document containing all relevant sale details.

3. Purchase Invoice

This is made for account payables. The seller will enter this as sales invoice while the buyer will enter it as purchase invoice.

4. Debit Note

This is evidence of reduction in purchases and can be useful to support purchases return journal. Furthermore, in customer books, debit note will reduce how much they owe to the seller.

5. Credit Note

This is evidence of reduced sales and support sales return journal. In addition to supplier’s books, credit note reduces the amount owed by the customer.

6. Cheque

This is a special bank note that represents the cash paid by the customer.

7. Revenue receipt

This is used to record the receipt of cash which is a proof that the payment is made.

8. Cash register receipts

This is a business paper that listed the money coming in from customers.

9. Bank or Credit advice

They are debit or credit bank advice. Bank credit advice is bank documents informing the business of an increase made in the business’s bank account. Unlike bank debit advice that is opposite to bank credit advice.

10. Deposit slips

When one receives cheque or cash from customer, the seller will take it to the bank and present.

11. ATM cards

The production of receipt from ATM machine can serve as evidence that money has been taken from the bank account.

12. Bank statements

This is a summary of financial transactions that occurred at a certain institution during a specific time period. For example, a typical bank statement may show your deposits and withdrawals for a certain month.

13. Bill of exchange

This is an unconditional order in writing, addressed by one person to another, signed by the person giving it. It also require the person to whom it is addressed to pay on demand.

14. Payroll report

This can also refer to the list of employees of a business and the amount of compensation due to each of them.

15. Cancelled Cheque

This is a check that has been paid or cleared by the bank

16. Cheque Stubs

This is the check kept by the payee with information such as the check number, date, and amount.

17. Employee Timecard

This is a method for recording and tracking the amount of an employee’s time spent on each job

18. Board minutes or minutes of meetings

The secretary of the board usually takes minutes during meetings.

19. Goods Dispatched Note (GDN)

This a document of the company that lists the goods sent out to a customer. Without a doubt, the company will keep one record of goods dispatched notes.

20. Goods Issues Note (GIN)

This is a physical record of the movement of goods or materials from the warehouse or store to production department.

21. Stock take Records

This is also called stock counting. It is when you manually check and record all the inventory that your business currently has on hand

22. Stock Record

A Bin Card is a card indicating quantitative records of the receipts, issues and balances etc.

23. Goods Received Note (GRN)

This is source document that shows the goods that a business has received from a supplier.

24. Remittance advice

This source document can confirm the amount paid and shows discrepancies that can easily be investigated.

25. Insurance Endorsement Certificates

This is where one party will add the other party as an “additional insured” on their commercial liability insurance policy.

26. Point of Sales Summaries

This can be used to record a number of sales at a cash register.

27. Memorandum

Memo is a written document businesses use to communicate an announcement, policy changes, price increases or notification to take an action, such as attend a meeting, or change a current production procedure.

28. Computer-generated Receipts

This is the kind of receipts is to be generated by the computer.

29. Lease Agreement or Rental Agreement

Lease contracts are formal documents that identify the lessor, lessee, what’s being leased, whether it’s an asset or a property.

30. Sales Tax Returns

This is the taxpayer’s document of declaration. This will enable the taxpayer to furnish the transaction details during a tax period and deposits his Sales Tax liability.

31. Cash Register Tapes

This allowed one to keep a record of all customer transactions and/or provide them with a receipt.

32. Adjustment Notes

This are issued to customers due to damaged, returned or undelivered goods

33. Employee Pay Advice

This source document that can helped to provide written evidence concerning employee income.

34. Payroll Advice Report

This payroll reports helped small businesses understand payroll costs and summarize payroll data.

35. Evidence of Sale or Disposal of Assets

This is the removal of a long-term asset from the company’s accounting records.

Conclusion

Indeed, all these top 35 source documents in accounting are integrated in several apps that offer such accounting services. Moreover, this App made it possible to have all these source documents in one place to make the accountant job easier and simple.

Kindly add your own source documents to the Top 35 Source Documents in Accounting listed above. This will help us to update our records accordingly.

Watch several videos of how to prepare financial statements from source documents

Prepare Financial Statements from Source Documents Part

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Ultimate Accountant Guide for Job Interview, Students and Beginners

Conceptual Framework

by Friday Ojeaburu | Jul 13, 2021 | Accounting Articles

Conceptual Framework

Conceptual framework is dealt with in this post. In line with theoretical foundation and previous research related to this study, a conceptual framework that describes the relationship between environmental accounting and sustainability development in Nigeria. The independent variable (predictor variable) used are oil spillage cost, oil drilling waste disposal cost and degradation as dimensions while the dependent variable (criterion variable) used are human development index and human poverty index as measures.

Figure 1:1 Conceptual framework of environmental accounting and sustainability development in Nigeria

Sources: (List all your source.)

Note

Indicators

Some school will require you list out the indicators as a bullet under the dimensions of independent variables and measure of dependent variables. Ensure all the indicators are discussed in chapter two (i.e. literature review). One essence of indicator is that it will increase the literature of your work. It will also make it easier for someone to see at glance the direction of your work.

Source of Reference

The essence of the source of reference is because someone may have use one of the dimensions of independent variable and measures of dependent variable before now. So, you have to reference those author accordingly.

Operational Framework

The model in Figure 2:1 above, showed the relationship between environmental accounting and sustainability development in Nigeria. Environmental accounting is the predictor variable with the following dimensions oil spillage cost, oil drilling waste disposal cost and degradation, while sustainability development in Nigeria is the criterion variable with a measure as human development index and human poverty index, whereas the moderating variable is firm size. The directions of the arrows shows the direction of the study relationship. The operational framework thus, illustrates the hypothesised relationship with each arrows representing a study hypothesis. In the operational framework each of the dimensions of environmental accounting are linked to the measures of sustainability development in Nigeria.

Heuristic Model

This Heuristic Model below is showing the result of the test between the dimensions of environmental accounting and measures of sustainability development in Nigeria.

Figure 5. 1: Heuristic model of environmental accounting and sustainability development in Nigeria

Key

Bold line indicates strong positive significant relationship

Broken arrow indicates weak positive insignificant relationship

This heuristic model in figure 5:1 shows the result of this study based on the hypotheses tested. The framework used an arrow to explain the relationship between variables that is significant and insignificant.

Conclusion

The design of conceptual framework, operational framework and heuristic model are dynamic in nature. All the design does not need to follow this pattern.

Always find out from your school the accepted design. This information shared will guide you as a researcher and student of higher institution in producing a better thesis and publications.

For more Information

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