How accounts of the co-operative society be maintained
Simple matters which must be kept in mind while maintaining accounts of the society or a co-operative society are the following:
All Fixed Assets like Building, machineries, equipments and Current Assets like Fixed Deposits, Current Account at Banks and Cash / Petty Cash must be mentioned must be a Debit Balance in the books of Account.
Long Term Liabilities like, Shares, Debentures, Bonds etc. should be specified as a Credit Balance in the books of Account. All Short Term liabilities like Funds must also be in Credit balance and reflected as credit balance in the books of accounts.
Income / Receipts
All monies received from members are to be mentioned in Debit side of the Income & Expenditure account. May these be named by any name but it must be as per the DCS Act and the DCS Rules.
Expenditure / Payments
All monies paid to any one must be mentioned in the credit side of the Income & expenditure account. May these be named by any name but it must be as per the DCS Act and DCS Rules.
Schedules / Annexures
Every figure in the above mentioned Assets & Liabilities and Income & Expenditure account should have a schedule or Annexures, in which detailed information of that particular account should be contained directly from the Account Books or Tally package in which almost 99% of the societies are maintaining their accounts.
Maintenance Charges or Common Maintenance Charges
This is the most important and most used account in the Society or co-operative society account. It shall always be in Debit Balance. This is expense account of the Society. It means the expenses the Society has made. It can also contain, advance payment of an expenditure and may also contain a provision of expense which shall actually be made in the forthcoming year because it has been incurred in the current year.
Pre-requisite of charging Maintenance Charges by Society
The Society or a co-operative society cannot charge any amount until and unless, it has been approved in a properly called AGM – Annual General Meeting by majority of the members after considering the budget which had been circulated to the members along with the notice of AGM.
Budget not circulated along with notice for AGM
In our opinion, if budget is not circulated sufficiently in advance to that members can think over all the expense planned by the Managing Committee, it is improper and illegal action of the Managing Committee. If the budget document is circulated in the AGM, there is no time for the members to point out any logic or say anything on the budget. There is no chance for those who made a choice to attend or not to attend the meeting because they were un-aware of expenses amounts which the Managing Committee has planned and has kept hidden.
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