C O - O P E R AT I V E S O C I T I E S

A C C O U N T I N G & S TAT U T O RY
REQUIREMENTS
Presented by

Anand Singh
Roll
No. 03

Presented to

Prof. Ashok
Gujar

ADVANCED FINANCIAL ACCOUNTING

M. COM. PART I : SEMESTER II

INTRODUCTION
Co-operative society is a collective effort of large
number of people, operating in various fields of activities
such as
- Co-operative Sugar Factories,
- Spinning and Weaving Mills,
- Urban Co-operative Banks,
- Consumers, Industrial, Housing Societies and so on.
The Accounting Procedures and Final Accounts
Formats differ from State to State as each State in India has
its own Co-operative Act.

DEFINITION
UNDER MCS ACT
Under Section 2(27) of the Act, Society means a
Co-operative Society registered or deemed to be registered
under this Act. Co-operative Society is corporate body
distinct from its members.
Section 167 of Co-operative Societies Act state
that provisions of Companies Act are not Applicable to Cooperatives.

MANAGEMENT AND
1. General
Body
ADMINISTRATION

General Body of Co-operative Society is described as Final

Authority,
subject to the provisions of the Act and Rules.
The following are the some of the important powers
exercisable only by the
General Body : Expulsion of a member by 3/4th majority.
Amendment of bye-laws of the society by 2/3rd majority.
Amalgamation of one society with other or transfer of
assets and
liabilities
Adoption of accounts, appropriations of profits as per the
provisions

2. Managing Committee
The managing committees decisions should be based on
the following
principles :

Decisions taken are not contrary to the provisions of the

Act and Rules and bye-laws of the society.
They are taken in the best interest of the society and no
personal benefit is derives from the decisions.
Financial decisions are taken in such a manner that funds
and properties of the society are properly safeguarded.

ACCOUNTING AND FINANCES

1. Books of Accounts and Records

According to Section 79(1) of M.S.C.S. Act, the Registrar

may direct keep
proper accounts in relation to:
All sums of money received and expended by the society
and the
matters in respect of which receipts and expenditure
take place.
All sales and purchases of goods by the society, and of
the stock in
hand and its valuation.
The assets and liabilities belonging to the society.

2. Statutory Registers

3. Financial Statements

According to Rule No. 61 of M.S.C.S. Rules, the society

will have to
prepare, within 45 days of the close of accounting year,
the following
financial statements :Receipts and Payments accounts during the previous
year cooperative accounting year ending 30th June.
The Profit & Loss Account for the year.
The Balance Sheet as on that date of accounting year i.e.
30th June.

4. Reserve Fund
Section 66(1) and(2) state that every Society deriving

THANK YOU!