b.1. P20,000.

00 and below – Treasure and Manager

b.1.2 Above P20,00.00 – Treasurer, Manager and the Chairman of the BOD

II. ACCOUNTING CONTROL

a. STANDARD CHART OF ACCOUNTS

STANDARD CHART OF ACCOUNTS

ASSET ACCOUNTS
CURRENT ASSETS
101 Cash on Hand
Value of currency/money received either in the form of bills, coins, checks, postal
money order (PMO) and demand drafts that are still in the physical possession of
the cooperative’s custodian. This includes cash awaiting deposits.
102 Cash in Bank
Money deposited in the bank under the name of the cooperative, i.e. savings,
current, time deposits and the combo-account. Separate account is kept to keep
track of the type of deposits made in the bank.
103 Petty Cash Fund
Limited amount of money set aside for small expenditures.

It is revolving cash fund, withdrawn from the general cash and made available
for small purchases and expenditures such as: local travel, stationary and
supplies, etc. Issuing a check for every small payment like taxi fares or staff
meals is not only inconvenient but impractical as well. To avoid such
inconvenience and minimize cost (since check preparation entails paper work
and staff time) this fund should be established to take care of small expenses.
104 Revolving Fund
The amount set aside to pay/meet member’s withdrawals, loan proceeds and
other operations as may be determined by the cooperative except encashment of
other checks.
This fund operates like a Petty Cash Fund maintained on an imprest system, that
is, the amount and the supporting papers to the expenditures must agree with the
amount of the fund established.
112 Cash Advances to Officers and Employees
Duly approved advances for official business to officers and employees subject to
immediate liquidation.
140 Short Term Investment
Investment in marketable securities, government bonds and other mutual funds
that are readily convertible into cash.
150 Loans Receivable
This account represents the local collectibles from members for the money loaned
to them payable at a certain rate of interest and for a specified period of time.
For purposes of computing financial ratios and for balance sheet presentation at
year-end period, loaned receivable with a term of over one-year may be
classified under Long Term Investment as “Loans Receivable-Long Term”
although no journal entry to reclassify the account may be made.

B1 150A B2 Loans Receivable – Restructured

Collectibles from the member-borrowers which accounts are restored to
current account by way of new payment conditions different from the original
terms and conditions.
B3 150 B B4 Loans Receivable-Past Due
Total collectibles from the member-borrowers, which become past due after a
certain grace period allowed. Aging of loans receivable should be prepared to
determine how much is the past due loans.

These are the loans that have remained unpaid after the installment is due or
upon maturity. The loan shall remain in this account until fully paid or until
arrangements are formalized for its renewal/extension/restructuring or
collection/ foreclosure case has been filed in court/sheriff’s office, as the case
may be.
B5 150C Loans Receivable-Loans in Litigation
Total collectibles from the member-borrower which accounts are long past due
and are submitted to the Legal Counsel for appropriate legal action. The loan
or advance shall remain in this account during the pendency of the legal
proceedings until it is fully pair or restructures or the property securing it is
foreclosed or such other disposition is made as would cause such proceedings
to cease. All expenses incurred incident to litigation shall be charged to
operation and lodged under Litigation Expenses account and the
reimbursement by the borrower during redemption of foreclosed properties.
151 Allowance for Probable Cause
An allowance set-aside in the books of the cooperative to provide for possible
losses due to uncollectible accounts. This is set aside in the books of the
cooperative by a debit to an expense account (Provision for Probable Losses)
and a credit to Allowance for Probable Losses. This account may also be
referred to as Allowance for Doubtful Accounts or Loan Loss Reserve. This is a
contra account to Loans Receivable.
160 Interest Receivables
Refers to uncollected interest on loan accounts which are restructures but
which are not capitalized or does not form part of the restructured loan
account. This will be closed and realized as interest income on loans when this
 is collected.
161 Receivable Form Accountable Officers and Employees
This account is debited for shortages, unliquidated/cash advances and other
losses due to the fault/negligence of accountable officers and employees subject
to immediate settlement/sanction.
162 Accounts Receivable – Others
Transactions/adjustments not classified under any of the receivable accounts
mentioned. This also represents:
 The amount currently owed to the cooperative by persons other than the
members for services rendered.
 Advances to members an account of their expenses not previously
covered by deposits such as insurance premiums on properties pledged
to the cooperative, taxes and other government imposts, inspection fees,
wire charges and other expenses.
170 Prepaid Expenses
Payment in advance in exchange for a future benefit usually within one year.
(Example: insurance, interest, advertising, rentals, etc.)
174 Unused Office Supplies
Office Supplies on hand at the end of the accounting period.
LONG TERM INVESTMENTS
180 Loans Receivable- Long Term
184 Long Term Investments – Cooperatives
Investments in equity and other cooperatives
184 Long Term Investments – Government Securities/Bonds
Investments in securities and bonds issued by the government and its
instrumentalities
185 Long Term Investments – Others (Specify)
All other investments not included in the above.
PROPERTY AND EQUIPMENT
191 Land
This account records the cost of the land used for operation plus all incidental
costs such as title, sales commissions, delinquent taxes, surveying fees, legal
fees, etc. All these are reflected in a single cost (cost or appraised value if
donated). Taxes paid by the landowner as a contribution to the cost of the land.
192 Land Improvements
This account records the cost of depreciable improvement after loan
acquisition (i.e. pavement, fencing, water system, drainage system, sidewalks
and pavements, etc. are subject to depreciation over their useful life).
Improvement cost incurred by the cooperative prior to use/occupation of the
land should also be debited to this account, if depreciable.
196 Building
Cost of the building erected at the land owned by the cooperative and used for
operation. Major repairs or improvements that will prolong life of the building
are considered additional cost.
197 Furniture, Fixtures and Office Equipment
This account represents the cost or appraised value or other appropriate value
 of movable (furniture), immovable (fixtures) properties and office equipment
used for in the production of goods or services such as desks, chairs, cabinets,
computers, etc. including incidental expenses incurred in acquiring them up to
the time they are received by the office which will use them. This is recorded at
cost or appraised value if donated. Depreciation is determined periodically
(monthly, quarterly, etc.) in accordance with approved rates.
198 Transportation Equipment
Cost of equipment which are owned by the cooperative and are used in
transporting goods, services or personnel. This is recorded at cost or appraised
value if donated.
200 Leasehold Rights and Improvement
Cost of building and/or improvements made on leased land/premises including
cost of rights paid.
2018 Accumulated Depreciation
Sum of depreciation on building, furniture, fixtures and equipment, set – up
monthly against current operation.
OTHER ASSETS
250 Organizational Costs
Expenses incurred prior to the actual operations of the cooperative such as
promoting and organizing. This can be amortized over a period of not
exceeding five (5) years. Among others, these are: (a) legal fees in connection
with the organization; (b) registration fees; (c) cost of printing share capital
certificates, cost of share and transfer book, seal of the cooperative, etc. And
(d) other cost of services rendered in the formation of the cooperative
251 Other Funds and Deposits
Holdout deposits on guarantee fund given by the cooperative to the funding
institutions in compliance with the requirements of certain agreement. The
corresponding fund set aside from the reserve, optional fund and any other
fund that may be set up by the cooperative. This may be in the form of time
deposits or other securities. The cooperative has the option to create sub-
accounts.
252 Assets Acquired in Settlement of Loans
Real and personal properties acquired by the cooperative through judicial or
extra-judicial settlement of loans. These should be disposed within the period
prescribed by law.

LIABILITY ACCOUNTS
CURRENT LIABILITIES
Are obligations that are reasonably expected to be liquidates through the use of existing
current assets or the creation of other current liabilities within the normal operating cycle of
the cooperative or one year, whichever is longer.
300 Savings Deposits
Deposits made by members that can be withdrawn anytime at the option of the
depositors.
303 Time Deposits – Short Term
 Deposits made by the members in the cooperative over a specified period of
time. If the time deposit is withdrawn ahead of this date, the depositor does not
earn the stipulated interest rate.
304 Loans Payable – Short Term
The indebtedness of the cooperative of federations, government lending houses,
banks and other cooperatives, or person(s), payable on short term basis.
305 Accounts Payable
Liabilities incurred for purchases of goods for use, services availed of and
others obligations in connection with the cooperatives’ ordinary business
operation.
306 SSC/ECC Philhealth and Pagibig Contribution Payable
The amount withheld by the cooperative from the compensation of its
employees representing their contribution to SSS, Philhealth and Pagibig
agencies. This account is credited for the said deductions.
308 Withholding Tax Payable
All taxes withheld. Example is the unremitted withholding tax deducted from
the employees’ salaries representing part of their possible income tax liability
to the Bureau of Internal Revenue (BIR)
311 Due to CETF (Apex)
An amount set aside for the education and training fund is 50% of the amount
allocated in accordance with the provision of the cooperative’s by-laws and the
cooperative code. The apex organization may be either a federation or union of
which the cooperative is a member (RA 6938, Article 87, 2a)
312 Interest on Share Capital and Patronage Refund Payable
Net Surplus after provision for reserves allocated for patronage refund and
interest of share capital as provided for in the cooperative code. Tis account
represents the liability of the cooperative to its members for interest on share
capital [patronage refund, which can be determined only at the end of the
year.]
313 Accrued Expenses
Expenses that have been incurred but not yet paid as of date statement of
financial condition but payable within the next accounting period. This account
represents the amount date due to creditors/employees for services
rendered/received and other expenses already incurred but not yet paid.
314 B6 Unearned Income
Income already received but not yet earned
315 Uncollected Income
Income that has been earned but has not yet received/collected such as in the
case of interest earned on accounts to be restructures, recognition as income of
which will be done at the time of collection.
316 Other Payables
The totality of all other liabilities that cannot be classified under any of the
preceding current liability accounts.
LONG TERM LIABILITIES
This are obligations payable beyond one year.
320 Revolving Capital Payable
 The deferred payment of interest on share capital and patronage refund, which
should be agreed upon in the General Assembly.
321 Loans Payable – Long Term
The indebtedness of the cooperative to federations, government lending houses,
banks, or person(s), payable beyond one year.
322 Retirement Fund Payable
Accumulated retirement benefit costs against the income of the cooperative
over the expected remaining working lives of participating employees.
OTHER LIABILITIES
331 Project Subsidy Fund Payable
Unused portion of the donation/grant for training, salaries and wages etc.
332 Mutual Benefit Fund Payable
Funds set aside by the cooperative for special purposes such as member’s
welfare and benefits, i.e. hospitalization, mortuary/death aid, etc., including
KBGF/CGF not taken from net surplus.
333 Due to HO/Branch

EQUITY ACCOUNTS
MEMBER’S EQUITY
This represents the value of the member’s interest in the cooperative as evidenced by his/her
paid up share capital and hi/her share in the undivided surplus of the cooperative.
361 Subscribed Share Capital – Common
The amount of share capital subscribed by regular member payable over a
certain period of time.
362 Subscription Receivables – Common
The total unpaid subscribed share capital of regular members.
363 Paid – up Share Capital – Common
Payment of the subscribed share capital as contribution paid by the regular
member to the cooperative, and it is not withdrawn during the term of
membership in the cooperative.
364 Treasury Share Capital – Common
Common shares bought back by the cooperative. This account should only be
used in the event that there are no incoming or existing members who are
willing to buy the share of the outgoing members.
365 Subscribed Share Capital – Preferred
The amount of share capita; subscribed be members (regular and associate),
payable over a certain period of time.
366 Subscription Receivables – Preferred
The total unpaid subscribed share capital of members (regular or associate).
367 Paid – up Share Capital – Preferred
Payment of subscribed share capital as contribution made by the members
(regular and associate) and it is not withdrawn during the term of membership
in the cooperative.
368 Undivided Net Surplus (Loss)
The accumulated net surplus of the cooperative which will be distributed in
 accordance with Articled 86 and 87 of RA 6938 at the end of each accounting
period.
DONATIONS / GRANTS
381 Donations and Grants
The amount received by the cooperative as subsidies, grants, aids, etc. This
shall not be available for distribution as interest on share capital and
patronage refund. In the Statement of Financial Condition, the donations,
grants and subsidies intended for relending, purchase of property and
equipment and unexpended administrative grants are segregated and reflected
under Donations/Grants (Equity) and Project subsidy Fund Payable
(Liabilities, respectively in the Statement of Financial Condition.). Expended
donations., grants and subsidies intended for administrative expenses shall be
shown in the Statement of Operation.
STATUTORY FUNDS
391 Reserved Fund
Amount set aside annually or the stability of the cooperative (equivalent to at
least 10% of net surplus). A corresponding fund shall be set up either in the
form of time deposit with local banks and government securities. Only the
amount in excess of the share capital may be used for the expansion and
authorized investment of the cooperative as provided for in its by-laws.
392 Education and Training Fund (local)
The amount retained by the cooperative out of the mandatory allocation as
stipulated in the cooperative by-laws.
393 Optional Fund
Fund set out of net surplus (should not exceed 10%) for future allocation such
as land and building, community developments, etc.

STATEMENT OF OPERATION
B7 REVENUES
It is the gross inflows of economic benefits during the period arising in the course of the
ordinary activities of an enterprise when those inflows result in increase in equity other than
increases relating to contributions from equity participants.
401 Interest Income from Loans
Interest earned by the cooperative based on the loan contract.
404 Membership Fees
The amount collected from members upon approval of membership in the
cooperative.
405 Service Fees
Fees collected by the cooperative for loan processing.
406 Filing Fees
Fees application fee collected from borrower
407 Fines, Penalties, Surcharges
Amounts imposed due to delay in remitting payments.
408 Income/Interest from Investment
Income earned by the cooperative from bank deposits, investments made in
 financial institutions/governments/business organizations. This shall include
interest income derived from the deposit of statuary funds in the bank until
utilized. Interest on these funds shall not be used to increase the fund.
410 Miscellaneous Income
All other income earned by the cooperative for which no specific account has
been set-up.
411 Project Subsidy
This shall appear at the statement of operation as a contra account to
subsidized Project Expenses.
FINANCING COSTS
501 B8 Interest Expense on Deposit
Interest paid on savings and time deposit of both regular and associate
members.
502 Interest Expense on Borrowings
Interest paid on borrowings
503 Other Charges on Borrowings
Service charges, filing fees and other for borrowings.
504 Provision for Probable Losses on Loans
Allocation or provision for estimated losses from probable uncollectible
accounts/loans.
505 Bank Charges
Bank fees and other charges.
506 Collection Expense
Amount paid to cashier/payroll section in effecting the monthly collection of
loans of the cooperative, including commission paid as incentives in the
collection of loans.
507 Litigation Expenses
Expenses incurred in legal cases.
ADMINISTRATIVE COST
516 Salaries and Wages
Amount incurred for services rendered by employees including overtime pay.
517 B9 Employees’ Benefits
All benefits given to employees other than salaries and wages.
518 SSC/ECC/Philhealth, Pagibig Contributions
The cooperative’s share in the employees contribution to SSS, Philhealth, ECC,
Pagibig.
519 Officers’ Honorarium and Allowances
Amount paid to directors, committee members, consultants and officers.
538 Retirement Benefits
The cost to a cooperative of providing retirement benefits to employees for
their services rendered. The cost of retirement benefits is recognized as an
expense in the periods during which the services are rendered.
539 Training/Seminars/Conferences
Amount spent for officers, directors, employees, members and prospective
members for training, attending seminars/conferences including all expenses
related thereto after exhausting CEFT (local).
540 Office Supplies
Expenses incurred for stationary and various supplies used for operation.
541 Power, Light and Water
Cost of light, water, gasoline. Diesel oil and lubricants incurred in the
operations.
542 Transportation and Travel
Includes fares, gasoline and fuel for service vehicles, toll fees, board and
lodging, per diem and meal allowances while on official travel.
543 Depreciation and Amortization
Amount provided for wear and tear of property and equipment amortization of
intangible assets.
544 B10 Insurance
All expenses paid to insure all assets/properties of cooperatives and all bonds
of accountable officers and employees. This shall include insurance premiums
paid for insuring the deposits of the members, if required.
548 Repairs and Maintenance
Expenses incurred in the maintenance of each facility and equipment except
major prolonging the life of the asset.
550 Rentals
Expenses incurred for building/office spaces of facilities leased by the
cooperative.
558 Taxes and Licenses
All taxes and fees paid to the government.
557 Audit and Professional Fees
Fees related expenses paid for audit and professional services rendered.
541 Communication Expense
Includes all expenses for courier (letters), telephone, e-mail, fax, internet,
messengerial, and all other means of communication.
544 B11 Representation
Expenses incurred related to accommodating visitors and guests an official
business.
549 General Assembly Meeting
Expenses incurred in the conduct of general assembly meeting whether regular
or special.
551 Meeting and Conferences
- Officers
- Employees
- Members
Expenses on meetings and conferences of officers, staff and members for
purposes of analysis, amount spent may be classified as to who attend the
meetings and conferences.
554 Affiliation Fees
Membership or registration fees and annual dues paid to a federation or union.
552 Social Services Expenses
All expenses incurred by the cooperative in their social community
involvement..
555 Promotional Expenses
Expenses incurred adverting and promotions
556 Periodicals, Magazine, Subscriptions
Expenses incurred for periodicals, magazines and other publication.
559 General Support Services
Expenses incurred for employing the services of security guards, janitors and
messengers.
567 Miscellaneous Fees
All other expenses incurred by the cooperative that does not fall under any of
the above expense accounts.
EXTRAORDINARY ITEMS
Gain or Loss on Disposal of Property and Equipment
Income or loss derived from disposal of properties
Gain or Loss on Investment
Income or loss derived from the disposal of investment.
Subsidized Project Expenses
Portion of the Project Subsidy Fund used for training, salaries and wages and
others subsidies by donations and grants.