HomeAni: Letran Calamba Research Reportvol. 1 no. 1 (2011)

The Enhancement of the Accounting System OF San Benito Multi-Purpose Cooperative in Victoria, Laguna

Menard M. Putungan | Pauline Michelle E. Añonuevo | Olyca D. Llanes

Discipline: Accountancy



The study aimed to compare the existing system of San Benito Multi-Purpose Cooperative with the prescribed accounting system of the Cooperative Development Authority. The study also intended to reduce the gap in the two entity’s systems by improving the former’s with the help of other related accounting standards.


The study adopted the descriptive method to gather relevant data. The close-ended survey questionnaires answered by the employees of San Benito Multi-Purpose Cooperative and a structured interview guide were the tools used. Additional interviews were also conducted to confirm the gathered data from the survey questionnaires.

To fully understand the existing accounting system, it was divided into four transaction cycles - revenue cycle, expenditure cycle, financial cycle, and conversion cycle. The accounting policies and procedures of each transaction cycle were analyzed together with the participation of the employees in every transaction. The procedures practiced by the cooperative from the source documents up to the balances presented in the financial reports were examined to test whether the applied procedures result to the fair presentation of financial statements.

Results revealed that the present accounting system of San Benito Multi-Purpose cooperative should be enhanced specifically in the procedures and source documents. Some existing policies should also be altered. It was found out that the duties and responsibilities of the employees in the current system are indefinite and inconsistent because of lack of strict implementation of tasks. The additional procedures and policies were not labor-extensive because the cooperative has only minimal transactions. In relation, this study recommended policies and procedures tailored-fit to the existing resources of the cooperative. These recommendations will also improve the internal control of the cooperative because it will define more the segregation of duties, document control, and physical safeguard of resources.