Short Answer

Surplus generated from society funds, such as parking rent, should be accounted for as per the Gujarat Cooperative Societies Act, 1961 and Rules.

Detailed Explanation

Section 79 of the Gujarat Cooperative Societies Act, 1961 deals with the application of the surplus. It states that any surplus funds generated by the society, including from parking rent, should be utilized for the welfare of the members and for promoting the cooperative principles. This means that the surplus should be accounted for and used in a manner that benefits the members and aligns with the cooperative objectives.

Furthermore, Rule 128 of the Gujarat Cooperative Societies Rules, 1965 provides detailed guidelines on the maintenance of accounts and audit of cooperative societies. It mandates that the surplus funds should be properly recorded in the society's accounts and should be subject to audit to ensure transparency and accountability in financial matters.

In practice, when a cooperative society generates surplus from parking rent or other funds, the managing committee should convene a meeting to discuss the utilization of the surplus. Members should be informed about the surplus amount, and a decision should be taken collectively on how to allocate the surplus for the benefit of the society and its members. This process ensures democratic decision-making and transparency in financial management.

Real-world Scenarios

• Scenario 1: A cooperative housing society collects surplus funds from parking rent over the year. The managing committee presents a report on the surplus amount during the annual general body meeting. Members discuss and decide to use the surplus to upgrade the security system in the society premises.

• Scenario 2: A cooperative society's parking revenue exceeds the estimated budget, resulting in a surplus. The surplus amount is allocated towards setting up a rainwater harvesting system in the society to promote sustainability and environmental conservation.

Reference

• Section 79 of the Gujarat Cooperative Societies Act, 1961

• Rule 128 of the Gujarat Cooperative Societies Rules, 1965