Short Answer

Cash books and ledgers are required for all cooperative societies, regardless of size.

Detailed Explanation

Section 77 of the Gujarat Cooperative Societies Act, 1961 mandates that every society shall maintain proper books of accounts, including a cash book and ledger. This means that even small societies are required to maintain these records to ensure transparency and accountability in their financial transactions. The cash book records all cash receipts and payments, while the ledger provides a detailed account of all transactions categorized by accounts.

In practice, maintaining cash books and ledgers is crucial for small societies to track their financial activities accurately. These records help in monitoring income, expenses, and outstanding balances, enabling the management committee to make informed decisions. Without proper books of accounts, it becomes challenging to assess the financial health of the society and comply with auditing requirements.

For example, a small housing cooperative with limited members must keep a cash book to record maintenance fee collections and ledger to track expenses like repairs and utilities. Similarly, an agricultural cooperative needs to maintain these records to monitor sales proceeds and expenses related to farming activities.

In real-world scenarios, failing to maintain cash books and ledgers can lead to financial mismanagement, disputes among members, and non-compliance with legal requirements. Therefore, even small societies must adhere to the statutory provisions and maintain accurate financial records for transparency and accountability.

Reference

• Section 77 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]