COOPERATIVES

CARREON, CLAROS, GOLORAN,

GUIAMLA, ITURIAGA, JAO, JAVA,
REYES, TIU, VALDEZ, ZAPANTA
Not-For-Profit Organizations

COOPERATIVE
S
 COOPERATIVES

A cooperative is an autonomous and duly

registered association of persons, with a common
bond of interest, who have voluntarily joined
together to achieve their social, economic and
cultural needs and aspirations by making
equitable contributions to the capital required,
patronizing their products and services and
accepting a fair share of the risks and benefits of
the undertaking in accordance with universally
 SEVEN
PRINCIPLES
VOLUNTARY AND
OPEN
MEMBERSHIP
DEMOCRATIVE
MEMBER
CONTROL
 MEMBER
ECONOMIC
PARTICIPATION
AUTONOMY AND
INDEPENDENCE
 EDUCATION,
TRAINING AND
INFORMATION
COOPERATION
AMONG
COOPERATIVES
CONCERN FOR
COMMUNITY
The primary objective of
every cooperative is to
help improve the quality
of life of its members.
 TYPES OF
COOPERATIVES
 CREDIT COOPERATIVE
Promotes and undertakes savings
and lending services

Examples:

Ateneo de Davao Employees Credit

Cooperative
Ang Dating Pulis Credit Kooperatiba
Ateneo Finance Students Savings and
Credit Cooperative
 CONSUMER COOPERATIVE
Procures and distributes
commodities

Examples:

Bagong Pag-asa Consumers Cooperative

(BPCC)
Bankerohan Jamaah Islamic Cooperative
Bulawanong Gasa Cooperative (BUGACO)
 PRODUCERS COOPERATIVE

Undertakes joint production

Examples:

Calinan Dairy Farmers Cooperative Inc.

Dabaw Women Producer Cooperative
(DABAW CO)
Aplaya Fishing Village Producers
Cooperative (AFVPC)
 MARKETING COOPERATIVE
Supplies production inputs and markets
products

Examples:

Bagong Silang Women Cooperative

Bangsamoro Marketing Cooperative
Buda Farmers Cooperative (BFC)
 SERVICE COOPERATIVE
Engages in various services

Examples:

Buhangin Transport Service Cooperative

ALDA Manpower Services Cooperative
Brokenshire Employees Cooperative
 MULTIPURPOSE COOPERATIVE

Combines 2 or more business activities

Examples:

Agdao Multipurpose Cooperative

Tagum Cooperative
Allied Services Cooperative
OTHER TYPES OF COOPERATIVES:

Advocacy Cooperative
Agrarian Reform
Cooperative
Cooperative Bank
Dairy Cooperative
Education Cooperative
Electric Cooperative
OTHER TYPES OF COOPERATIVES:

Financial Service Cooperative

Fishermen Cooperative
Health Service Cooperative
Housing Cooperative
Insurance Cooperative
Transport Cooperative
Water Service Cooperative
Workers Cooperative
CATEGORIES OF
COOPERATIVES
In Terms of Membership

PRIMARY
SECONDARY
TERTIARY
In Terms of Territory

According to areas of
operations
 BASIC
ORGANIZATIONAL
PLAN OF A
COOPERATIVE
Basic Organizational Plan
GENERAL
ASSEMBLY

MEDIATION &
AUDIT ELECTION ETHICS BOARD OF
CONCILIATIO
COMMITTEE COMMITTEE COMMITTEE DIRECTORS
N COMMITTEE

EDUCATION
CHAIRMAN CHAIRMAN CHAIRMAN CHAIRMAN AND
CHAIRMAN
TRAINING
COMMITTEE

VICE VICE VICE VICE VICE

CHAIRMAN CHAIRMAN CHAIRMAN CHAIRMAN CHAIRMAN CHAIRMAN

SECRETARY SECRETARY SECRETARY SECRETARY SECRETARY VICE

CHAIRMAN

MEMBER
SECRETARY

MEMBER

MEMBER
 A Sample of an Organizational
Chart of a Multipurpose Cooperative

GENERAL
ASSEMBLY

SECRETARY MANAGER TREASURER

ACCOUNTING OPERATIONS TREASURY

OTHER PRODUCTION/
CONSUMERS/ MAJOR
LOANING SERVICES/ MANUFACTURIN
MARKETING SERVICES
FACILITIES G
 CAPITAL
SOURCES
Capital Sources
1. Members Share Capital
2. Loans and Borrowings including
Deposits
3. Revolving capital
4. Subsidies, donations, legacies,
grants, aids, and such other
assistance from any local or
foreign institution whether
public or private
Financial
Statement
s
Financial Statements

1. Statement of Financial
Condition (Balance Sheet)
2. Statement of Operations
(Income Statement)
3. Statement of Changes in Equity
4. Cash Flows Statement
5. Notes to Financial Statement
Supporting Schedules

1. Bank Reconciliation Statement

2. Aging of Receivables
3. Property and Equipment Lapsing
Schedule
4. Allocation and Utilization of
Statutory Funds
5. Distribution of Interest on Share
Capital and Patronage Refund
Pro-Forma
Statement
s
Statutory
Funds
RESERVE FUND

The amount set aside

annually for the stability
of the cooperative

At least 10% of annual

net surplus
COOPERATIVE EDUCATION
AND TRAINING FUND

The amount retained by

the cooperative for
education and training

Not more than 10% of

annual net surplus
COMMUNITY DEVELOPMENT
FUND

Fund set aside for

projects/activities that will
benefit the community

Not less than 3% of

annual net surplus
OPTIONAL FUND
Fund used for building,
acquisition of equipment,
members benefit, etc.

Not exceeding 7% of
annual net surplus
Allocation and
Distribution of
Net Surplus
Illustrative
Case
Assumptions on
Operation:
Interest Income on Loan 845,00
0
Service Fees 47,000
Membership Fees 2,000
Gross Surplus 894,00
0
Less: Operating Expenses 311,00
0
Net Surplus for Allocation and 583,00
Distribution 0
Allocation of Net Surplus:

Reserve Fund (10%) 58,300

Education and Training Fund (10%)
Due to CETF (1/2 of ETF) 29,150
Local ETF (1/2 of ETF) 29,150
Optional Fund (7%) 40,810
Community Development Fund 17,490
(3%)
TOTAL STATUTORY RESERVES 174,90
0
Allocation of Remainder for Interest and
Patronage:

Net Surplus for Allocation and 583,000

Distribution
Total Statutory Reserves (174,
900)
Remainder for Interest and Patronage 408,100

Interest on Share Capital (50%) 204,050

Patronage Refund (50%) 204,050
TOTAL 408,10
0
Section 9 of the IRR of RA
9520:

Where X = percentage to be determined by the

Board of Directors allocated for interest on
share capital.
Total Average Share Mont
h
shall refer to the sum total of the
average share month, which is
determined by adding the monthly
ending balances of the member's
share capital and dividing the sum
by twelve (12) months.


Formula for Computation of Rate
of Patronage Refund:

Where X = percentage to be determined by the

Board of Directors allocated for interest on
patronage refund.


Exercise 8-2
Five transactions of a cooperative
are listed below. For each
transaction, state the account
debited/credited and mention the
documents evidencing it.
A. Cash of P25,000 was received
from members as contributions.
B. Savings deposits were received
totaling P15,000.
C. Loan was granted to one of the
members, P5,000, interest of P500 was
deducted in advance.
D. Salaries of employees were paid (net
of withholding taxes of P1,000, SSS
Premiums of P1,200) P27,800.
E. Withdrawals from deposit
amounted to P10,000
Exercise 8-3
Selected transactions for a
transport cooperative are listed
below. For each transaction, state
the account(s) and the
document(s) that is/are affected.
A. A donation is received from the
governor, P25,000.
B. The cooperative borrowed money
from the bank issuing a long-term
note, P100,000.
C. P50,000 of the amount borrowed is
paid for a new equipment.
D. P10,000 is received from
passengers during the period.
E. Equipment worth P200,000 were
purchased on account.
Exercise 8-5
Selected account balances of a cooperative show
the following balances on December 31, 20X8:
1. How much is the total statutory
funds?
2. How do you present the Loan
Protective Fund and the Damayan Fund?
3. How much is the total members'
equity?
4. How much is the total non-current
assets?
Problem 8-1
The consumer store operation of Silang Cooperative showed
the following account balances in the ledger for years 20X6
and 20X7: (Prepare a comparative statement of income.)

(in 000)
20X7 20X6
Miscellaneous Income 0.10 0.25
Miscellaneous Expense 0.30 0.45
Interest on Bank Deposit 0.50 0.90
Beginning Inventory 20.00 34.00
Sales 20.00 25.00
Purchases - -
Ending Inventory 9.00 20.00
Store and Office Supplies 0.20 0.31
Expenses