Full Project-ACCOUNTING SYSTEM OF CO-OPERATIVE SOCIETIES..

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ABSTRACT

Most critics hold that there is paucity of accounting records maintained by co-operative societies. This study therefore investigates the level and the adequacy of accounting records of co-operative societies.  To determine this, the fundamental objective of the study among others are. To identify and disclose whether adequate accounting records are kept by co-operative societies. To determine the impact of the present level of accounting record’s on profitability and viability of co-operative societies. The entire cooperative societies in Enugu North local government area (registered) was the study population from which 98 was selected. A set of structured questionnaires was administered to the sample out of which 72 responded.  Oral interview was also used to collect useful data and information which could not have been portrayed by the questionnaire. The collected data were classified, analysed and interpreted by the use of tables, percentage, product moment of correlation and chi-square (test of goodness of fit) was used in testing the hypothesis. From the analysis of data, the major findings are that; co-operative societies do not really maintain adequate accounting system. There is weakness in the internal control system of co-operative societies. Co-operative societies make use of their members as their accounting staff usually the secretary. Most co-operative societies do not company with the established accounting standards. The present level of accounting records in co-operative societies affect the profitability and viability of co-operative societies. Based on the findings some of these recommendations were made; co-operative societies should employ experienced competent and trained accounting staff to improve their accounting system. The accounts of co-operative societies should be audited by external auditors like corporate organization. The management of co-operative societies (committee) should receive management training and also every member of the co-operative should be educated.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Co-operative societies are part of the aim of government, they are nutured by the government the government believe that through co-operative societies that the standard of living of the masses will improve. They are meant to enhance the economic and social well being of the populace as this will help to record economic growth and subsequent development, that is why the government sponsor and run some of the activities of co-operative societies. For instance the government employ co-operative field sta to disseminate the gospel of co-operation, to nuture co-operative by giving them directives and prepare them for registration and also to audit the accounts of co-operative, societies. Co-operative societies are business organization though in the class of non profit seeking form of business organization whether a business is profit oriented or non profit oriented, it should hare an accounting system. Against this background, this research is designed to study the accounting system of co-operative societies how the information presented by the accounting system is utilized. Ie whether it is used in making decisions for the businesses.

1.2   STATEMENT OF THE PROBLEMS
Some of the problems attendant to co-operative societies which militated against the accounting system of co-operative societies in Enugu North local government area are as follows.
1. Paucity of accounting records and information
2. Lack of fund to employ trained accountant to manage the accounts of co-operative societies.
3. lack of management education to the committee members who are managers of the societies and the general members who potential committee members.
1.3  THE OBJECTIVES OF THE STUDY 
The objectives of the study are as follows:
i. To identify and disclose whether adequate accounting records are maintained in co-operative societies.

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