ACCOUNTING SYSTEM OF CO-OPERATIVE SOCIETIES IN ENUGU NORTH LOCAL GOVERNMENT AREA
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Most critics hold that there are paucity of accounting records maintained by co-operative societies.
This study therefore investigate the level and the adequacy of accounting records of co-operative societies. To determine this, the fundamental objective of the study among others are.
- To identify and disclose whether adequate accounting records are kept by co-operative societies.
- To determine the impact of the present level of accounting record’s on profitability and viability of co-operative
The entire cooperative societies in Enugu North local government area (registered) was the study population from which 98 was selected. A set of structured questionnaire was administered to the sample out of which 72 responded. Oral interview were also used to collect useful data and information which could not have been portrayed by the questionnaire.
The collected data were classified, analysed and interpreted by the use of tables, percentage, product moment of correlation and chi-square (test of goodness of fit) was used in testing the hypothesis.
From the analysis of data the major findings are that.
- co-operative societies do not really maintain adequate accounting system.
- There is weakness in the internal control system of co-operative societies.
- Co-operative societies make use of their members as their accounting staff usually the secretary.
- Most co-operative societies do not company with the established accounting standards.
- The present level of accounting records in co-operative societies affect the profitability and viability of co-operative societies.
Based on the findings some of these recommendation were made.
- co-operative societies should employ experienced competent and trained accounting staff to improve their accounting system.
- The accounts of co-operative societies should be audited by external auditors like corporate organization.
- The management of co-operative societies (committee) should receive management training and also every member of the co-operative should be educated.
- Background of study 1
- Statement of problems 2
- The objective of the study 2
- Research hypothesis 3
- Significance of the study 4
- Scope and limitation of the study 5
- Definition of terms 6
LITERATURE REVIEW 9
- Definition of Accounting 10
- Objectives and importance of accounting information 12
- Importance of accounting 14
- Definition and meaning of accounting
system/composition of system. 17
- Accounting system. 18
- Importance of maintaining adequate
accounting system 23
- Definition and meaning of co-operative societies 26
- Origin of co-operative society in Nigeria. 30
- Problems of co-operative societies 32
RESEARCH METHODOLOGY 34
- Sources of data 34
- Sample use and determination of sample size 35
- Method of investigation 36
- Presentation and analysis of data 37
- Data analysis 37
- Test of hypothesis 48
- Findings 57
- Conclusion 59
- Recommendations 60
Co-operative societies are part of the aim of government, they are nutured by the government the government believe that through co-operative societies that the standard of living of the masses will improve. They are meant to enhance the economic and social well being of the populace as this will help to record economic growth and subsequent development, that is why the government sponsor and run some of the activities of co-operative societies. For instance the government employ co-operative field staff to disseminate the gospel of co-operation, to nuture co-operative by giving them directives and prepare them for registration and also to audit the accounts of co-operative, societies.
Co-operative societies are business organization though in the class of non profit seeking form of business organization whether a business is profit oriented or non profit oriented, it should hare an accounting system.
Against this background, this research is designed to study the accounting system of co-operative societies how the information presented by the accounting system is utilized. Ie whether it is used in making decisions for the businesses.
- STATEMENT OF PROBLEMS
Some of the problems attendant to co-operative societies which militated against the accounting system of co-operative societies in Enugu North local government area are as follows.
- Paucity of accounting records and information
- Lack of fund to employ trained accountant to manage the accounts of co-operative societies.
- lack of management education to the committee members who are managers of the societies and the general members who potential committee members.
- THE OBJECTIVES OF THE STUDY