CHAPTER ONE
INTRODUCTION:
Co-operation is as old as human society. From time immemorial, man had relied on the existence of his fellows for existence and examples of working together. Modern co-operative is however associated with the successful experiment of 28 weavers fromRochdale,Englandwho in 1844 established the first successful co-operative consumers society. Their success became widely acclaimed and their working principles were accepted as the basic principles of co-operative organization.
Earlier attempts to form co-operative failed because members were illiterate, dishonest and accounts were not kept. Following theRochdaleprinciples, enabled the co-operative movement to avoid most of the evils of the era of industrial expansion.
Again, because the majority of the composition of membership had been people of low income, their contributions in the form of shares and thrift savings, special saving and other sources of income had been very low. The view of this coupled with the de-emphasis of capital in the society i.e. the instituted low return on capital, the wealthy men with capital have technically been scared away.
Lastly, the system of accounting usually adopted by these bodies gives no room for proper management. This is because information is hardly extracted from such records kept by them for planning and controlling of their operation. I therefore wish to derive into the functions and functioning of the co-operative movement with particular emphasis on the accounting aspects of its management and then recommend on the practical and attainable application of its principles to ensure the achievements of the goal of the movement.
BACKGROUND OF THE STUDY:
Man had relied on the existence of his fellows for existence and examples of working together. Man made an attempt to form a co-operative but they failed due to because members were illiterate and an account were not kept.
Growth is a gradual process, co-operative also is a gradual process. Co-operatives as a gradual process of growth has succeeded in developed countries but this has not been the case in developing countries.
It appears that this process of co-operative has not been clear to developing countries and this has resulted in their inability to develop like industrialized nations.
The system of accounting usually adopted by the management is because information is hardly extracted from such records kept by planning and controlling of the operation. The majority of the composition of members had been people of low income.
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