Short Answer

When a society sells a flat or asset, the transaction must be properly recorded in the audit.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 mandates that every society shall maintain proper books of accounts showing all transactions. This means that when a society sells a flat or asset, the details of the transaction must be accurately recorded in the society's accounts. The audit process involves examining these records to ensure compliance with the Act and Rules.

Rule 90 of the Gujarat Cooperative Societies Rules, 1965 specifies the requirements for the audit of societies. It states that the audit shall include verification of all transactions, including sales of flats or assets. The auditor must ensure that the sale proceeds are correctly accounted for and that all relevant documents are in order.

In practice, when a society sells a flat or asset, the transaction should be documented with details such as the buyer's information, sale price, date of sale, and any associated expenses. This information should then be reflected in the society's financial records and presented to the auditor during the audit process.

Real-world Scenarios

• Scenario 1: A cooperative housing society sells a flat to a new member. The sale details, including the sale price, buyer's information, and date of sale, are recorded in the society's accounts as per Section 81 of the Act.

• Scenario 2: A cooperative society sells a piece of land to generate funds for a development project. The sale transaction is accurately documented, and the proceeds are properly accounted for during the audit, as required by Rule 90 of the Rules.

• Scenario 3: A society sells an old asset to upgrade its facilities. The sale proceeds are used for the intended purpose, and the transaction is transparently recorded in the society's financial records for audit verification.

References

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

• Rule 90 of the Gujarat Cooperative Societies Rules, 1965: Official PDF