Short Answer

Yes, the society is required to include the investment income from fixed deposits in maintenance calculations.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 mandates that every society shall maintain true and correct accounts of the society's transactions, including a cash book, a journal, and a ledger. This means that any income generated from investments, such as fixed deposits, must be recorded in the society's accounts. In practice, this ensures transparency and accountability in the financial management of the society.

Furthermore, Rule 89 of the Gujarat Cooperative Societies Rules, 1965 specifies that the society's accounts shall be audited annually by a qualified auditor. During the audit process, the auditor will review all financial transactions, including income from investments, to ensure compliance with the Act and Rules. Failure to include investment income in maintenance calculations could lead to discrepancies in the financial records and potential legal issues.

In real-world scenarios, if a society earns interest income from fixed deposits, this amount should be considered as part of the society's total income. This income can then be utilized for various purposes such as maintenance expenses, repairs, or other operational costs. By accurately recording investment income in maintenance calculations, the society can effectively manage its finances and meet its obligations.

For a step-by-step process, the society should first ensure that all investment income is properly documented in the financial records. The income should then be included in the overall maintenance calculations to determine the total funds available for the society's expenses. This process helps in maintaining financial transparency and accountability within the society.

Practical Examples

• Scenario 1: XYZ Cooperative Society earns Rs. 10,000 as interest income from fixed deposits in a financial year. This amount should be recorded in the society's accounts as per Section 73 of the Act and Rule 89 of the Rules.

• Scenario 2: ABC Housing Society uses the interest income from fixed deposits to cover maintenance expenses such as cleaning services and repairs, ensuring proper utilization of funds.

References

• Section 73 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 89 of the Gujarat Cooperative Societies Rules, 1965: Official PDF