INTRODUCTION

LEGAL PROVISIONS
Co-operative Societies as form of organization doing the business is assuming a growing
importance, next to corporate sector on the Indian economic scene. Co-operative Society is a
collective effort of large number of people, operating in various fields of activities such as Cooperative Sugar Factories, Spinning and Weaving Mills, Co-operative Credit Societies, Urban
Cooperative Banks, Consumers Co-operative Societies, Industrial Cooperative Societies,
Housing Societies and so on. Maharashtra is considered as a most progressive state in the
development of Co-operative Societies. The Accounting Procedures and Final Accounts Formats
differ from State to State as each State in India has its own Co-operative Act. Let us study the
main provisions of the Maharashtra Cooperative Societies (MCS) Act, 1960 and the Maharashtra
State Co-operative Societies Rules, 1961.
DEFINATIONS UNDER MCS ACT
1. Co-operative Society : Under Section 2(27) of the Act, Society means a Cooperative
Society registered or deemed to be registered under this Act which is an autonomous
association of persons, united voluntarily to meet their common needs and aspirations
through a jointly owned and democractically controlled enterprise and adhering to the cooperative principles and values (as amended vide Amendment Act, 2013). 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 Co-operatives.
2. Working Capital : Under Section 2(31) of the Act, Working Capital means funds at the
disposal of society inclusive of paid up share capital, funds built up out of profits and
money raised by borrowing and other means, the definition of the term is different as
generally working capital means Net Current Assets represented by current assets less
Current liabilities. The audit fees of certain types of societies such as Urban Co-operative
Banks, Salary Earners Credit Societies are related to the amount of the working capital.
3. Auditor : Rules No. 69 of Co-operative Societies Rules states that the audit of Cooperative Societies shall be conducted either by departmental auditor or certified auditors.
The term certified auditors includes the following:

(a) Chartered Accountant

(b) A person who holds a Government diploma in Co-operative accounts and audit
(c) A person who has served as an auditor in the Co-operative department of the State
Government (Retired Officers of the Cooperative department).
4. Bye-Laws : Under Section 2(5) as amended by the Amendment Act, 2013 Bye-laws
means bye-laws consistent with this Act and registered under this Act and for the time
being in force, and includes registered amendments of such bye-laws. Bye-laws of a Cooperative Society may be compared with the articles of a company. The provisions in the
bye-laws cannot be contrary to the provisions of the Co-operative Societies Act. The byelaws generally include the following clauses for internal management of Co-operative
Societies
(a) Name and address of society
(b) Area of operation
(c) The manner in which, and the limits upto which the funds of the society should be
(d)
(e)
(f)
(g)
(h)
(i)

raised.
Objects of society
Maximum amount of share capital that may held by a member
Terms and qualifications for admission of membership
Rights, duties and liabilities of members
Maximum loan admissible to a member
Disposal of net profit

Rules no.8 of Maharashtra State Co-operative Societies Rules, 1961 give the various
details of the items in the bye-laws of the society. Any amendments, changes or deletion
in bye-laws shall have to be approved by a resolution at special general meeting and also
a written approval from the District Deputy Registrar is necessary. The first bye-laws of
the society are required to be approved by the Registrar, as per Rule No.9.
5. Co-operative Year : The Act [S. 10(a)(iii)] has fixed 31 st day of March as the day of
balancing the accounts of the society. However, any other day can be fixed by the society
for this purpose with the prior approval of the registrar. It means that the co-operative
year need not necessarily be from 1st April to 31st March. Normally, now-a-days societies
follow 31 March as the year ending to conform with the Income-tax Act.
6. Member : Under Section 2(19) as amended vide Amendment Act, 2013, a member of a
Co-operative Society, which is subsequently registered, or a person duly admitted to a

membership of Society after registration and includes an associate, nominal or an active

member. Following are the different types of members
(a) Associate Member : Associate Member means a member who holds jointly a share
of society with others, but whose name does not stand first in share certificate.
(b) Nominal Members : Nominal Member means a person admitted to membership as
such after registration in accordance with its laws.
(c) Active Member : An active member means a member who participates in the affairs
of the society and utilizes the minimum level of services or products of that society as
may be specified in the bye-laws (inserted by Amendment Act, 2013)
MANAGEMENT AND ADMINISTRATION
General Body
General Body of Co-operative Society is described as Final Authority, under S.72 of the Act,
subject to the provisions of the Act and Rules. The following are the some of the important
powers exercisable only by the General Body
(1) Explusion of a member by 3/4th majority.
(2) Amendment of bye-laws of the society by 2/3rd majority. However, this is subject to
approval from Registrar.
(3) Amalgamation of one society with the other or transfer of assets and liabilities of one
society to other society.
(4) Adoption of accounts, appropriations of profits as per the provisions of the act, rules and
bye-laws of the society.
(5) Sanction of writing off the Bad Debts and Losses as per the Rule No. 49 of M.S.C.S.
Rules.
Managing Committee
Even though the General Body is the final authority of a society, the whole of the day-to-day
management of a Co-operative Society vests in managing committee, by virtue of Section 73 of
the Act. The managing committees decision should be based on the following principles
(1) Decision taken are not contrary to the provisions of the Act and Rules and bye-laws of the
society
(2) They are taken in the best interest of the society and no personal benefit is derived from
the decisions.

(3) Financial decisions are taken in such a manner that funds and properties of the society are
properly safeguarded.
For the purpose of proper functioning and to achieve an effective division of labour, different
sub-committees are formed, such as Purchases Committee, Sales Committee, Price Fixation
Committee, Loan Committee and Stock Valuation Committee etc.
The administrative functions of managing committee includes the following:
(1) Proper custody and maintenance of movable and immovable property belonging to the
society.
(2) Proper maintenance of accounts relating to financial transactions of the society.
(3) To summon all the meetings including Annual General Meeting and record the
proceedings in respective books.
(4) To keep all the necessary registers and records required by the Act and Rules and byelaws.
Under Rule No. 58 of M.S. Co-operative Societies Rules, a member is disqualified to be a
member of the Managing Committee if :
(1) He is in default to the society in respect of any dues from him, either as a borrower or as
a surety, for such period as specified by the bye-laws.
(2) He has been held responsible under Section 79 or Section 88 or has been held responsible
for payment of costs of enquiry under Section 85
(3) A member carrying on business of the kind carried on by the society.
ACCOUNTING AND FINANCES
Books of Accounts and Records
According to Section 79(1) of M.S.C.S. Act, (as amended wide Amendment Act, 2013) the
Registrar may direct any society to keep proper books of accounts in such form, including
electronic or any other form as may be prescribed, in relation to :
(1) All sums of money received and expended by the society and the matters in respect of
which receipts and expenditure take place.
(2) All sales and purchases of goods by the society, and of the stock in hand and its
valuation.

(3) The assets and liabilities belonging to the society.

(4) He may call the society to furnish such statements and returns and to produce such
returns as he may require from time to time.
Rule No. 65 of M.S.C.S. Rules give a specific list of the following books to be maintained by
the society: (1) Cash Book, (2) General Ledger and Personal Ledger, (3) Stock Register, (4)
Property Register, (5) Register of audit objections and their rectifications, (6) Such other
accounts and books as from time to time be specified by the Government.
Broadly speaking, books of accounts should be so maintained as to give the necessary financial,
statistical and other information.
Statutory Registers
Under Section 38 of the Co-operative Societies Act read with Rules No. 32, a Co-operative
Society shall have to maintain a Register of Members in 1 Form. Nominations should be
obtained from the members. According to Rule No. 33 read with Section 39 the list of members
shall have to be maintained in U form.
Returns and Statements
S. 79(1A), inserted by the Amendment Act, 2013 states that Every society shall file returns
within six months of the close of every financial year to which such accounts relate, to the
Registrar or to the person authorized by him. The returns shall contain the following matters,
namely :
(a) annual report of its activities,
(b) its audited statement of accounts,
(c) plans for disposal of surplus funds as approved by the general body of the society.
(d) list of amendments to the by-laws of the society, if any,
(e) declaration regarding date of holding of its general body meeting and conduct of elections
when due,
(f) any other information required by the Registrar in pursuance of any of the provisions of this
Act.

S. 79(1B), inserted by the Amendment Act, 2013 states that- Every society shall also file a return
regarding the name of the auditor or auditing firm from a panel approved by a State Government
in this behalf, appointed in the general body meeting together with his written consent, within a
period of one month from the date of annual general body meeting.
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.
(1) Receipts and Payments accounts during the previous year cooperative accounting year
ending 31st March.
(2) The Profit & Loss Account for the year (or Income and Expenditure A/c).
(3) The Balance Sheet as on that date of accounting year i.e. 31st March.
Rules No. 62, of M.S.C.S. Rules deals with the prescribed form of Balance Sheet and Profit &
Loss Account (Form N). The financial statements duly prepared in this form are to be laid
down before the Annual General Meeting, which is to be held within three months from the end
of accounting year. The registrar may permit a particular society to prepare their financial
statements in some other form as per the provision of this Rule.
Ascertainment & Appropriation of Profits
1. Section 65(1) of the Act, states that a society shall construct its relevant annual financial
statement and arrive at its consequent net profit or loss in the manner prescribed. A Cooperative Society engaged in a business of Manufacturing, Trading or Banking should
adopt mercantile system of accounting to arrive at true and fair profits. The law does not
mention anything about the method of accounting.
2. Section 65(2) states that a society may appropriate its Net Profit to the reserve fund or
any other fund for payment of dividend to members on their shares. No parts of the
profits shall be appropriated except with the approval of the General Body.
3. Section 64 of the Act states that no part of the funds other than the dividend equalization
or Bonus equalization shall be paid by way to bonus or dividend to its members.
[Note : Provision of S. 68 regarding contribution towards Education Fund have been removed
vide Amendment Act, 2013.]

Raising of Funds
The funds of the society may be raised in one or more of the following ways :
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)

By entrance fees,
By issue of shares,
By loans and subsidies,
By deposits,
By voluntary donations, (but not from Transferror and Transferee),
By contributions towards cost of building or buildings,
By fee on transfer of shares, along with the occupancy right,
By premium on transfer of occupancy right over the fiats
By and for Election Fund,
By any other mode permitted under these bye-laws.

Reserve Fund
Section 66(1) and (2) state that every Society deriving profits, shall transfer 25% of the profit to
the Reserve Fund. According to the provision of the Section, the registrar may fix the
contribution not less than 10% in some cases of any society having regards to its financial
position. The section states that this fund subject to the Rules made in this behalf be used in the
business or may be invested as per the provision of Section 70. Rule No. 54 deals with the
utilization and investment of Reserve Fund. The rule gives modes of investment in addition to
those prescribed in Section 70. According to the rule, if the societys fund is equal to or more
than its paid up capital, the society can utilize the excess amount in the business, with the
approval of Registrar. Interest received on investment of Reserve Fund shall be capitalized
(added to the Reserve Fund) as per standard accounting conventions.
Thus, the Reserve Fund of the society shall comprise of
(a) The amounts carried to the said fund, from year to year, out of the net profit of that year,
subject to the provisions of Section 66(1) and (2) of the Act,
(b) All entrance fees received by the society from its members,
(c) All transfer fees received by the society from its members on transfers of their interest in
the capital or property of the society,
(d) All premium received by the society from its members on transfers of their interest in the
capital or property of the society,
(e) All donations received by the society, except those received by it for the specific purpose.

Creation of Other Funds

The society shall create and establish the following funds by collecting contributions from its
members at the rates mentioned hereunder:
(a) The Repairs and Maintenance Fund, at the rate fixed at the general body subject to the
minimum of 0.75 per cent per annum of the construction cost of each flat, incurred during
the construction of the building of the society and certified by the Architect, for meeting
expenses of normal recurring repairs of the society buildings/property.
(b) Major repairs funds, as and when required and decided by the General Body at the rate
fixed on area basis.
(c) The Sinking Fund at the rate decided at the meeting of the general body, subject to the
minimum of 0.25 per cent per annum of the construction cost of each flat incurred during
the construction of the building of the society and certified by the Architect, excluding
the proportionate cost of the land.
Utilisation of the Funds by the Society
The society may utilize its funds in the manner indicated below :
(a) The Reserve Fund of the society may be utilized for the expenditure on repairs,
maintenance and renewals of the societys property.
(b) The Repairs and Maintenance Fund may be utilized by the Committee for meeting the
expenditure on maintenance of the societys property and repairs and renewals thereof.
(c) On the resolution passed at the meeting of the general. Body of the society, the Sinking
Fund may be used by the society for reconstruction of its building/buildings or for
carrying out such structural additions or alteration to the building/buildings, as in the
opinion of the Societys Architect, would be necessary to strengthen it/ them or for
carrying out such heavy repairs as maybe certified by the Architect and on approval of
General Body.
Investment of Surplus Fund
Section 70 as amended vide Amendment Act, 2013 and Rule No. 56 prescribe that the surplus
funds belonging to the society should be invested or deposited in the following manner:

(1) In a District Central or State Co-operative Bank having been awarded at least A Audit
Class in the last 3 consecutive years.
(2) In any of the Securities specified in Section 20 of Indian Trust Act, 1982.
(3) In shares, Securities, Bonds or Debentures of any other society with limited liability.
(4) In any other mode permitted by the rules, or by general or special order in that behalf by
the Government.
According to Rule No. 56 the following additional modes of investments are prescribed:
(1)
(2)
(3)
(4)

In the case of Primary societies in the Central Finance Agencies.

In the case of Central Co-operative and Urban Banks, in the State Co-operative Banks.
In the debentures issued by Land Development Bank of in Government Loans.
In immovable property specified by Registrar by general or special order.

Restrictions on Borrowings
(1) According to Rule No. 35 of M.S.C.S. Rules, no society can incur a borrowing liability
exceeding tem times the total amount of paid up capital, accumulated reserve fund, and
building fund minus accumulated losses. Borrowings in excess of this limit require the
previous sanction from Registrar.
(2) Liabilities incurred by way of borrowings and deposits in excess of this limit shall not be
utilized in the business of the society, but shall be invested in Government securities or be
deposited with the Central/State Co-operative Banks.
(3) Section 43 of the Act states that a society shall receive deposits and loans from members
and other persons, only to such an extent, and under such conditions as may be prescribed
or specified by the bye-laws of society. The Registrar may impose some conditions if
considered necessary.
(4) According to Rule No. 43 of M.S.C.S. Rules every member applying for a loan from
society shall be required to hold proportionate share as may be required by the bye-laws
of the society.
(5) A society whose objects do not include grant of loan or financial assistance to its
members shall not grant loans to its members without the sanction from the Registrar.
(Rule No. 44(1)
(6) According to Rule No. 44(2) a Consumer Society may sell goods on credit to its members
and other customers up to the deposit accepted from its members.

(7) In case of loans given by the society to the depositors on the security of his fixed deposit
with the Society, the amount of loan shall not exceed 90% of the deposit amount, and the
period for such loan shall not exceed the date of maturity of deposit.
Writing off of Bad Debts and Losses.
According to Rule No. 49 no bad debts or losses shall be written off without the sanction of
General Body. All debts which are found irrecoverable and are certified as Bad Debts, by the
auditor appointed U/S 81, shall be written off, first against bad debt fund, and the balance if any,
may be written off against the Reserve Fund and the Share Capital of the Society. An Approval
from Registrar is necessary before writing off the Bad Debts.
Security From Employees
Rule No. 107-B deals with the securities to be taken from the officers and employees of the
society who are required to handle cash, securities and property belongings to the society. The
amount of security shall be different on the baiss of paid up share capital of the Society being
either less than Rs. 1.50 lacs or more than Rs. 1.50 lacs. It shall be partly in cash and partly in the
form of personal security of Fidelity Guarantee Policy.
Maximum Cash Balance
Rule No. 107-C prescribed the maximum amount of cash allowable to be kept by different kinds
of societies. Some of the limits prescribed by the Rule are as follows:
Type of Society
Sugar Factories
Consumer Societies
Dairy Societies
Industrial Estates
Salary Earners Societies
Housing Societies

Maximum Cash Rs.

5,000
1,000
500
500
500
500

Payment By Cheque
Rule No. 107-D prescribes that all payments made by the Society exceeding the notified sum
shall be made by cheques, except the loan sanctioned to members

CONSUMER CO-OPERATIVE SOCIETIES

DEFINATION AND OBJECTIVES
Under S. 2(9) of Maharashtra Co-operative Societies Act 1960 Consumer Society means a
society, the object of which is
(a) The procurement, production or processing, and distribution of goods to or the
performance of other services for, its members as also other customers, and
(b) The distribution among its members and customers, in the proportion, prescribed by rules
or by bye-laws of the society, of the profits accruing from such procurement production
or processing and distribution.
Consumer Co-operative Society strives to promote interest of its members or other consumers by
supplying required quantity of quality goods at reasonable prices by eliminating intermediaries
between buyer and sellers/ manufacturers.
CATEGORIES
The consumers co-operative societies can be classified in following categories.
(1) Primary Consumer Societies: Primary Consumer Societies meet the needs of the direct
customers who purchase for their own consumption, mostly middle income group
customers. The controlled goods are purchase through concerned central/wholesale stores
to which, it is affiliated. The other commodities are purchase in bulk from open market
by the managing committee/ purchasing committee members at competitive prices. The
fair price shops are primary societies. These societies may be institution based (restricted
to employees of a particulars industry or commercial organization etc.) or open to public.

(2) Central Wholesale Stores: Central Wholesale Stores deal with wholesale business. They
are normally located at District places and fulfil the needs of primary societies at the
district/village levels. These also have their own retail stores, branches and departments.
(3) Departmental Stores: In metropolitan cities super markets or departmental stores (e.g.
Apna Bazar) are set up which stock all requirements of consumers under one roof for the
convenience of consumers. These societies receive substantial amounts by way of share
capital, contributions, loans, and special financial assistance for procuring suitable
premises, installations, interior decoration and also for buying furniture and fitting.
SPECIAL FEATUES OF ACCOUNTING
(1) Type of Society: The accounting system for all three categories of these societies will
have to be different as per its size, volume and requirements. In primary societies
manager himself may write the accounts, whereas in departmental stores adequate staff is
employed for the purpose. Separate record for controlled items is required by supply
department.
(2) Sales: Sales are mostly for cash. Credit sales are made either against deposits maintained
or advances collected from members and others or against employers assurance to
deduct dues from wages payable to its employees.
(3) Cash Memo/Bills: Cash memos and bills with all details are issued for cash/credit sales
respectively.
(4) Sales to Members: Sales made to members are recorded in pass books given to them.
(5) Selling Prices: Selling prices are fixed so as to cover all expenses as a fair margin of
profits but no unfair advantage can be taken of fluctuations in the market and no attempt
at profiteering or raising prices, be made, though done by other dealers. No cornering or
overstocking be adopted. Holding the price time and equitable distribution of
commodities in short supply are the main objectives of the consumers movement in India,
only a small margin just enough to meet the overheads and is reasonable may be added.
(6) Bonus to Customers: Regular customers are given a share in the profits of the society by
way of bonus or rebate in proportion to the purchases made by them from the society.

(7) Committees: The consumers store functions through Managing Committee/Central

Committee/Purchase Committee, price fixation committee and few other committees as
appointed. The committee members may be given honorarium, if there are sufficient
profits.
(8) Working Capital: The working capital is raised through share capital, trade credits from
suppliers and wholesalers. The departmental stores and central societies are sanctioned
cash credits by Central Co-operative Banks under Central Government guarantee scheme.
Generally a fortnights credit is allowed to primary societies purchasing from them.
(9) Appropriations: Appropriation of Profit
25% of net profit transferred to reserve fund & invested outside the business of the
society.
2% of net profit transferred to dividend equalization reserve
Out of balance 75% can be used for granting purchase bonus to patrons by way of rebate
in future purchases.
Balance profit, as decided in general meeting.

STATUTORY FORMATS OF FINAL ACCOUNTS

[Notes: (1) Trading A/c: There is no prescribed format for Trading Accounts, which can be
prepared in the usual manner. (2) P&L Appropriation A/c: No appropriations can be made unless
the accounts are audited and approved by the general body. Hence no P&L Appropriation A/c is
prepared along with the annual accounts, submitted by the managing committee to the general

body for approval. In case an examination problem indicates any proposed appropriations, a
Memorandum P&L Appropriation A/c should be prepared showing such proposed
appropriations. But such proposed appropriations should not be adjusted in the Balance Sheet.]
EXHIBIT 1: FORMAT OF PROFIT AND LOSS A/C (N TYOE)
Last

This

Last

Years

Years

Years

Years

Figure

Figure

Figures

Figure

nP
--

----

---

--------

Expenditure

Rs.
1. Interest
(a) Paid Rs.
(b) Payable Rs.
2. Bank Charges

nP
--

Rs. Rs. nP
--

--

3. Salaries and Allowances

to Staff
4. Contribution to Staff
Provident Fund

--

--

--

--

5. Salary and Allowances

Of Managing Director
6. Attendance Fees and
Travelling expenses of
Directors and
Committee Members
7. Travelling expenses to
Staff
8. Rent, Rates and Taxes
9. Postage, Telegram and
Telephone Charges
10. Printing and Stationery
11. Audit Fees
12. (Contingencies)
General Expenses
13. Bad Debts written off
or provision made for
Bad Debts

---

--------

Income

--

This

s
1. Interest Received:
(a) On Loans and
Advances
(b) On Investments
2. Dividend Received on
shares
3. Commission
4. Miscellaneous Income:
(a) Share Transfer Fees
(b) Rent
(c) Rebate in Interest
(d) Sale of Forms
(e) Other Items
5. Land Income and
Expenditures Accounts

nP
--

---

--

Rs.

-----

14. Depreciation on Fixed

Assets
15. Land Income and
Expenditure Account

--

16. Other Items

17. Net Profit carried to
Balance Sheet

---

--

Note: In the case of marketing societies, consumers societies and similar other societies which
have undertaken trading activities, the Profit and Loss Account shall be divided into two parts
showing separately the trading account and the Profit and Loss Account. In case of producers
societies, processing societies/ forest labourers societies and offer societies which have
undertaken production activities, the manufacturing account shall also be prepared in addition.
EXHIBIT 2 : BALANCE SHEET (N TYPE) [SEE RULE 62(1)]
Figures
for

Liabilities

the

Figures Figures
for the for

Previou

Curren

t Year s

Year

(Rs.)
--

---

(Rs.)
I. Share Capital
-Authorised :
Shares of Rseach
Subscribed :
(Distinguishing
between the various
classes of particulars
specified below, in
respect of each class)
Shares of ..each
Less: Calls in arrears
Add : Calls in
advances
I-A. Subscription
-towards Shares
II. Reserve Funds and
-Other Funds
a. Statutory
Reserve
Funds
b. Building Funds

Assets

the

for the

Previou

--

Curren

Year

(Rs.)
--

Figures

t Year
I. Cash and Bank
Balance
a. Cash in Hand
b. Cash in Banks
(i) Current Account
(ii) Savings Banks
Account
(iii) Call Deposits on
Banks

II. Investments
a. Government Securities
b. Other
Trustee
Securities

(Rs.)
--

c. Special Development
Fund
d. Bad and

c. Non-Trustee Securities
d. Shares of Other Co-

Doubtful

operative Societies
e. Shares, Debentures or

Debts Reserve
e. Investment

bonds of companies

Depreciation Fund
f. Dividend

registered under the

Companies Act
f. Fixed Deposits

Equalisation Fund
g. Bonus Equalisation
Fund
h. Reserve for Overdue

--

--

Interest
i. Other Funds
III. Staff Provident
Fund

--

--

IV. Secured Loan

-a. Debentures
b. Loans, Overdrafts and

--

Cash
Banks
c. Loans

credits

from
from

Government
d. Other Secured Loans

III. (1) Investment of Staff

Provident Fund
(2) Advances against
Staff Provident
Fund
IV. Loans and Advances
1. a. Loans
b. Overdrafts
c. Cash Credits
(i) against pledge of
Goods
(ii) clean (of which
overdue )
2. Loans
due
by
Managing Committee
Members Rs. Loans
due by Secretary and

--

--

V. Unsecured Loans
a. Loans, Cash credits
and Overdrafts from
Central Bank
b. From Government
c. From Others
d. Bills Payable
VI. Deposits
a. Fixed Deposits
b. Recurring Deposits

--

--

--

--

other employees Rs.

V. Sundry Debtors
1. Credit Sales
2. Advances
3. Others

VI. Current Assets

1. Stores and Spare Parts
2. Loose Tools

c. Thrift
d.
e.
f.
g.

Saving

Deposits
Current Deposits
Deposits at Call
Other Deposits
Credit balance
Cash

--

or

credit

3. Stock-in-Trade
4. Works-in-Progress

in
and

Overdraft Accounts
VII. Current Liabilities
and Provisions
a. Sundry Creditors
b. Outstanding

--

--

Creditors:
(i)For Purchases
(ii)For
Expenses

VII. Fixed Assets

a. Land and Building
b. Leaseholds
c. Railway Siding
d. Plants and Machinery
e. Loose Tools, Tackles
f.
g.
h.
i.

including salaries of
staff, rent, taxes etc.
c. Advances, recoveries

and Other Equipments

Deadstock
Furniture and Fittings
Livestock
Vehicles

for the portion for

which value has still
to

be

given,

viz.

unexpired
subscriptions,
premiums,
--

commission, etc.
VIII. Unpaid Dividends

--

--

VIII. Miscellaneous
Expenses and
Losses
1. Goodwill
2. Preliminary Expenses
3. Expenses
connected
with the issue of shares
and

debentures

including underwriting
charges,

brokerage,

etc.
4. Deferred

Revenue

--

IX. Interest accrued due

but not paid

--

--

Expenditure
IX. Other Items
a. Prepaid Expenses
b. Interest accrued but not
due
c. Other Items (to be

--

X. Other Liabilities (to be -specified)

--

--

XI. Profit & Loss

Account
Profit for last year
Less: Appropriations
Add: Current Profits

--

--

specified)
X. Profit & Loss Account
Accumulated losses not
written off from the
reserve or any other
fund
XI. Current Losses

EXHIBIT 3 : INSTRUCTIONS FOR BALANCE SHEET (N TYPE) [SEE RULE 62(1)]

Instructions in accordance with which

Instructions in accordance with which

Liabilities should be made out

I. Contributed by Government and by Co-

Assets should be made out

I. Fixed deposits and call deposits with Central

operative Societies and different classes of

Banks and other approved bankers should be

individual members shall be shown

shown under the heading Investments and

separately. Terms of redeemable preference

not under the heading Cash and Bank

shares should be mentioned.

II. (a) Statutory Reserves Fund and other
Reserves and Funds shall be shown
Separately
(b) Additions and deductions since last
Balance Sheet to be shown under each
of the specified head.
(c) Funds in the nature of Reserves and
Funds created out of any profits for
specific purposes should be shown

Balances.
II. The nature or each investment and the mode
of valuation (cost of market value) should be
mentioned if, the book value of a security is
less than the market value, a remark to that
effect should be made against each item.

separately.
III. Staff Provident Funds and any other
insurance or Bonus Funds maintained for

III. Quoted and unquoted securities should be

shown separately.

the benefit of the employees should be

shown separately.
IV. The nature of the security should be

IV. In case of Central Banks and other Federal

specified in each case. Where loans have

societies loans due to societies and

been guaranteed by Government or State

individual members should be shown

Co-operative or Central Banks, a mention

separately

thereof should also be made together with

the maximum amount of such guarantee.
Loans from (1) Government, (2) State Cooperative Bank or Central Bank, State bank
of India and Other Banks should be shown
separately.
V. -VI. Deposits from Societies and Individuals
should be shown separately

V. -VI. Mode of valuation and stock shall be stated

and the amount in respect of raw materials
partly finished and finished goods and
stores required or consumption should be
stated separately. Mode of valuation of

VII. --

works in progress shall be stated.

VII. Under each head of the original cost and
the additions thereto and deductions
therefrom made during the year and total
depreciation written-off or provided up to
the end of the year should be stated.

VIII. -IX. -XI. Contingent Liabilities which have not been

provided for should also be mentioned in
the Balance Sheet by way of a footnote.