Short Answer

Yes, a society can mandate electronic accounts and audits, or still use paper.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 allows for the maintenance of accounts in electronic form. It states that a society may maintain its books of accounts and other relevant documents in electronic form as prescribed by the rules. This means that societies have the option to use electronic means for their accounting requirements.

Furthermore, Rule 91 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the electronic maintenance of accounts. It specifies the procedures and safeguards for maintaining electronic records, ensuring their accuracy, security, and accessibility. Societies opting for electronic accounts must comply with these rules to ensure transparency and accountability in their financial operations.

In practice, societies can choose between traditional paper-based accounting systems or modern electronic methods based on their convenience, resources, and technological capabilities. Electronic accounts offer advantages such as easier access, faster processing, and reduced paperwork. However, societies must ensure compliance with the prescribed rules to prevent any discrepancies or security risks.

Real-world Scenarios

• Scenario 1: A large cooperative housing society with multiple transactions opts for electronic accounts to streamline its financial management. By using accounting software and digital platforms, the society can track payments, manage expenses, and generate reports efficiently.

• Scenario 2: A small agricultural cooperative society in a rural area prefers traditional paper-based accounting due to limited access to technology and expertise. They maintain physical ledgers and records to track their financial transactions manually.

Overall, the choice between electronic and paper-based accounts depends on the society's specific needs, resources, and compliance requirements.

References

• Section 81 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 91 of the Gujarat Cooperative Societies Rules, 1965: Official PDF