Short Answer

Advances, deposits, or loans to members are reflected in the books of a cooperative society through proper documentation and accounting entries.

Detailed Explanation

Section 47 of the Gujarat Cooperative Societies Act, 1961 states that every cooperative society shall maintain proper books of accounts showing all transactions, including advances, deposits, or loans to its members. This means that any financial assistance provided to members must be recorded accurately in the society's financial records.

Rule 44 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the maintenance of accounts by cooperative societies. It specifies the format and details required in the books of accounts, ensuring that all transactions, including advances, deposits, or loans, are properly documented and reflected.

In practice, when a cooperative society provides an advance, deposit, or loan to a member, it must record the transaction in the respective member's account in the books. This includes details such as the amount, purpose, terms of repayment, interest rate (if applicable), and any other relevant information. These entries should be accurate, transparent, and compliant with the provisions of the Act and Rules.

Real-world Scenarios

• Scenario 1: A cooperative housing society provides a loan to a member for home renovation. The society records this transaction in the member's account, specifying the loan amount, purpose, repayment schedule, and any interest charged.

• Scenario 2: A cooperative credit society accepts deposits from its members. Each deposit is recorded in the respective member's account, showing the deposit amount, date, and maturity period.

• Scenario 3: A cooperative agricultural society grants advances to farmers for purchasing seeds. The society maintains detailed records of these advances, including the amount disbursed, crop season, and expected repayment schedule.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 47

• Gujarat Cooperative Societies Rules, 1965: Rule 44