Registration of co operative society in Kerala

• Minimum number of persons required for registering a co operative society in Kerala is 25  

• The first committee formed for registration of a society is promoters  committee 

• Promoters committee consists of 3 to 5 members 

• The chief promoter elected by promoters committee

• The first general body meeting of a co operative society convened by chief promoter 

• The first general body meeting of a co operative society shall be convened within the period of three months 

• The chief promoter fail to convene the first general body within three months it shall be convened by any person authorised by Registrar of co operative  society  

• The share suspense collected by the chief promoter shall be deposited in the central bank within 14 days

• The application for Registration should be enclosed with , three copies of proposed draft byelaw, certificate from the bank showing the credit balance , Two copies  list the persons who contributed the share capital , Viability certificate , any other information required by Registrar of co operative Society 

• The form for application shall be submitted in duplicate and a court fee stamp of rupees 5 should be affixed to the original application  

• Every application shall be attached with a challan receipt for Registration fee, The payment of Registration fee related with the area of operation of the Societies

         1. Area of operation within a district ₹                 5000 

         2. Area of operation more than one                       district  ₹ 10000

         3. Area of operation within a taluk                       ₹ 2000 

        4. Area of operation more a taluk less                  than a district ₹ 4000 

        5. Women or SC / ST Societies ₹ 500 

        6. School Societies ₹ 100

• The registration certificate is the conclusive evidence of a co operative society 

• A society start it's functioning  only after conducting it's first general body meeting after getting the Registration 

• The application for registration of a society to be submitted in form No 1 

• The Registration certificate shall be issued by the Registrar in form No 3 

Permanent Book and Registers of co operative Society

 Permanent Book and Registers of 

co operative society 

1. Admission register

2. Audit Certificate 

3. Day Book

4. General Ledger

5. Loan Register

6. Liability Register

7. Minute Book

8. Nomination Register

9. Reserve Fund Register

10. Register of members eligible to vote 

11. Registered byelaw

12. Registration Certificate

Important Acts in KCS Act

The Indian Contract Act                   -  1872 

The Indian Trust Act                         -  1882 

The Charitable Endorsement Act  -  1890 

Banking Regulation Act                   -  1949

Employee Provident Fund Act       -  1952

Kerala Money Lenders Act             -  1958

Payment of Bonus Act                     -  1965 

Payment of Gratuity Act                 -  1972

Consumer Protection Act               -  1986

Single Entry System

• Under single entry system of Accounting only one aspect of transaction is recorded 

• Single Entry System of Accounting is also known as Incomplete system of Accounting 

• Only cash book and personal accounts are maintained in single Entry System 

• Single Entry System of Accounting followed by Sole traders , Partnership firms , Hindu Undivided Family ( HUF ) 

• Under Single Entry System of Accounting profit and loss account can be ascertained using statement of affairs method 

• Statement of affairs method also known as Conversion method and Capital comparison method 

• The Statement of affairs method is prepared to find out the capital 

• The Total Debtors Account is prepared to ascertain the credit sales and Credit Purchases are ascertain by preparing Credit Account 

• Trail Balance is not prepared under Single Entry System of Accounting

Accounting Standards in India

Accounting Standards in India

AS 1  Disclosure of Accounting policies

AS 2  Valuation of Inventories

AS 3  Cash flow statement

AS 4  Contingencies and Events occurring after the Balance sheet

AS 5  Net profit or loss for the period, prior period item and changes in Accounting Policies

AS 6  Depreciation of Accounting

AS 7  Accounting for construction contracts

AS 8  Accounting for research and Development

AS 9  Revenue Recognition

AS 10 Accounting for Fixed Assets

AS 11 Accounting for the effects of changes in foreign exchange rates

AS 12 Accounting for Government grants

AS 13 Accounting for investment

AS 14 Accounting for Amalgamations

AS 15 Accounting for retirement benefits in the financial statement of employers

AS 16 Borrowing costs

AS 17 Segment Reporting

AS 18 Related party Disclosures

AS 19 Leases

AS 20 Earning per share

AS 21 Consolidated Financial statements

AS 22 Accounting for taxes on Income

AS 23 Accounting for Investments in associated in consolidated financial statements

AS 24 Accounting for discontinued operations

AS 25 Interim Financial Reporting

AS 26 Intangible assets

AS 27 Financial Reporting of interests in joint ventures

AS 28 Impairment of assets

Accounting Principles

 1. Dual Aspect                                                                     According to this concept each and every business transactions has two aspects. This is also known as Accounting Equivalence concept.

2. Varifiability and Objectivity Principle                       This Principles says that the accounting data provided in the books of accounts should be verifiable and dependable. The figures exhibited in the financial statements should have supportive evidences such as bills and vouchers.

3. Historical Cost                                                                 Historical Cost Principles requires that all transactions should be recorded at their acquisition of cost . The acquisition of cost refers to the cost of purchasing the assets and expenses incurred in bringing the assets to the intended condition and location of use.

4. Revenue Recognition Principle                                      Revenue is the amount that a business earns through sale of goods or services. Revenue is recorded at the time when the title of goods passes from the seller to the buyer.

5. Matching Principle                                                             As per the Matching Principle only those expenses pertaining to the current accounting period must be matched against the revenue relating to the same period

6. Disclosure Principles                                                          This Principle States that the published financial statements must fully disclose the true and fair view of the state of affairs of the concern for a particular period or on a particular date.

Accounting Assumptions or concepts

Accounting assumption or concept refer to necessary assumptions or conditions on which the accounting system is based. Assumptions provide a foundation for the accounting process.

1.Accounting entity concept                                                        Accounting entity concept assumed that business unit is business unit is distinct and completely separate from the owners.

2.Money measurement concept                                                  In this concept, transactions that can be measured in terms of money only are recorded in the books of accounts

3.Going concern concept                                                              Under this concept the business unit is assumed to have an indefinite life. It is States that the business organisation is treated as a continuing one for long time.

4.Accounting period concept                                                          The period of interval for which Account is kept for ascertaining the result of business during the period is called Accounting period                                                  

              

Basic Terms in Accounting Part 2

 Income                                                                                Income is the increase in the networth of the organisation either from business activity or other activities

Expenses                                                                                The amount spent in the process of earning revenue is called as expense. Rent, wages, salaries,water charges, electricity charges are the examples of expenses.

Loss                                                                               Loss is the gross decrease in the assets or gross increase in liabilities.

Profit                                                                               Profit is the excess of revenue over expenditure in an accounting year.

Purchase                                                                               The total amount of goods procured by a business concer for cash or on credit for the purpose of sale or use is known as purchases

Sale                                                                               The income earned from the sale of goods or services rendered. The amount received from the sale of fixed assets is not treated as sales

Debtors                                                                              Debtor is a person who owe money to the business

Creditor                                                                               Creditor are person who claim for money against the business for any goods supplied or services rendered by them on credit

Basic Terms in Accounting Part 1

Assets : Assets are things of value owned by                the business

1. Fixed assets : The assets which is intended to be used for long period or above one year

• Tangible assets: These are assets having         definite shape and physical existence      

• Intangible assets: Assets having no physical existence but are represented by rights in certain things

• Wasting assets: Assets which get exhausted to the extent of extraction

• Fictitious assets: These have no real value but are shown in the books of accounts only for technical reason

 2. Current Assets : Current Assets are those       assets which can be converted into cash       within a short period of time

 3. Capital : Money or money's worth                   invested by the owner into the business

 4. Drawings : The amount of cash or other         assets withdrawn by the owner of the           business

 5. Revenue : The amount earned by selling       its products or services

 6. Voucher : It is the documentary evidence
     of transaction

 7. Liabilities : Liabilities are the obligations

     or debt payable the company in future in       the form of money or goods

• Fixed Liabilities :  Liabilities which are payable after a long period or above one year.                     

• Current Liabilities :   Liabilities which are payable within a short period or less than one year

CSEB Previous Question 3

1 . Father of Indian co operation ?

     Ans : Federic Nicholson

2.  Where is KICMA situated ?

     Ans : Neyyar Dam

3.  Vice chairman of CAPE ?

     Co operative minister

4.  A scheduled bank in co operative sector
     in Kerala ?

     Ans : Kerala State Co operative Bank

5.  Who can cancel the crossing of
     of a cheque ?

     Ans : Drawer

6.  Exim Bank was established in the year ?

     Ans : 1982

7.  The undeclared dividend will be shown.         in ?

 

     Ans : Liability

8.  NCCT was established in the year ?

     Ans : 1976

9.  IPO means ?

     Ans : Initial Public Offer

10.  NABARD was established as per the                  recommendation of ?

        Ans : Sivaraman committee 

11.  Full form of ATM ?

       Ans : Automated Teller Machine

12.  Auditors create provision for ? 

       Ans : Overdue

13.  Another name for qualitative credit                 control ? 

   

       Ans : General credit control

14.  The first marketing society in India ?

        Ans : Hubli

15.  GAAP means ?

        Ans : Generally Accepted Accounting                           Principles 

16. NCDC established in ? 

       Ans :  13-03-2021

17. Full form of CASA ?

      Ans : Current Account Saving Account

18. An audit made compulsory by law is

      called ?

       Ans : Statutory audit

19. Audit notebook is kept by ? 

      Ans : Auditor

20. Demand draft valid for a period of ? 

       Ans : Three months

21. The main source for the profit of a bank

       is ? 

       Ans : Interest

22. The certificate issued by the notary

      public on behalf of a dishonoured bill is

      known as ?

      Ans : Protest

23. The rate of depreciation to be charged on

       land owned by the society ?

       Ans : zero

24. Arrangement of work between clerks 

      known as ? 

      Ans : Internal check

25. Reserve for doubtful debts is ?

       Ans : Charge against profit

26. The source document for purchase

       return ? 

       Debit Note

27. The relationship between consignor and 

       consignee ? 

       Ans : Principal and agent

28. Depreciation due to change in technology

      or change in fashion ? 

 

       Ans : Obsolescence

29. Cost of services and things used for

      earning revenue ? 

        Ans : Expense 

30. First column in the petty cash book ? 

      Ans : Receipt

31. When a banker accepts valuables for

       safe custody, the banker become ? 

   

       Ans : Bailee 

32. A derived deposit is opened with the 

      initiative of ? 

      Ans : Banker

33. The document which contains the terms 

      and conditions of partnership ? 

      Ans : Partnership deed

34. The bailment of goods as security for 

      payment of a debt or performance of a 

      promise is called as ? 

      Ans : Pledge 

35. Headquarters of Labour fed located at ? 

      Ans : Thiruvananthapuram

36. Affiliation fee to the State Co operative

      Union is calculated on ? 

      Ans : Share capital

37. The Minimum Borrowing Power of a co 

      operative society is fixed as per ? 

      Ans : Byelaw

38. The first urban Co operative society in 

      India ? 

      Ans : Kanjeevaram

39. The member secretary of All India Rural 

      Credit Review Committee ? 

       Ans : NSR Sastri 

40. Rule 16 A related with ? 

       Ans : Identity Card

41. The section related to the bye law 

      amendment in a co operative society ? 

      Ans : 12

42. The Heddesdrorf Loan Society founded 

       in the year ? 

       Ans : 1864

43. The account which increased by a debt 

      entry ? 

       Ans : Sales return

44. The authority which is responsible for 

       the collection and utilisation of co 

       operative education fund ?

 

        Ans : State Co operative Union 

45. The duty of a sale officer in a 

       co operative society is ? 

       Ans : Conduct attachment and sales

46. The un called partners of share capital 

      set apart to be called only at the time of 

      liquidation ? 

      Ans : Reserve capital

47. Negotiable Instrument Act came into

      force on ?

       Ans : 1st March 1882 

48. GST means ?

       Ans : Goods and Service Tax

49. The unclaimed dividend will be 

       shown as ?

       Ans : Liability

50. Cost of services and things used for 

      earning revenue ?

      Ans : Expense