Index
1.
Project Objectives and Core Values
2.
SHG Concept
3.
Group Management norms and Financial norms in SHG Meeting
4.
Need and importance of Bookkeeping for an SHG
5.
Bookkeeper Concept
6.
Bookkeeper selection criteria
7.
Bookkeeper role and responsibilities
8.
Do’s and Don’ts of a Bookkeeper
9.
Books of accounts be maintained in an SHG
10. Bookkeeping Flow Chart
11. How to write Various Books of accounts
a. Meeting Minutes Book
b. Attendance cum Savings Register
c. Cash Book
d. Loan Ledger for Small and Big Loans
e. General Ledger
f. SHG Member Savings cum Loan Pass Book
g. SHG Maasanivedika
12.
SHG Bookkeeping Training Plan
Page 1 of 26
Indira Kranthi Patham
1a. Project Objectives:
1) To organize the poor house holds into their own institutions
where the members will harness their potential and come out
of Poverty.
2) To provide constant facilitation support to these organizations
so as to enable the members to participate fully and directly
and take decisions on all issues affecting their lives.
3) To create and develop a large pool of social capital in the
institutions of the poor for providing continuous support in their
Endeavour to come out of poverty.
4) To build a sensitive support mechanism for these
organizations of the poor to emerge into self-managed and
self-reliant institutions and work independently beyond the
project period.
1b. Core Values of the Project :
1. Belief in the power of the poor.
2. Sympathy and empathy towards the
marginalized members of the society.
disadvantaged
and
3. Honesty and integrity
4. Respect the human dignity and individuality of the poor.
5. Facilitate the poor to resolve their problems but not to arbitrate
them.
Page 2 of 26
2. Self-help Group concept
 Self-help group is an informal association of women from poor
households
 It is an organization in which members with similar socioeconomic conditions come together around a common interest.
 The size of the group normally consists of 10 – 15 members
 Self-help and mutual help are the core principles of the group
 The group provides equal opportunity to all its members to
participate in the meetings
 Members thrift and credit are the key elements for the group
development
 Members in the group take all decisions in their meetings by
democratic process and consensus approach.
Page 3 of 26
3. SHG Management Norms and Financial Norms.
After formation of a Self Help Group the members should conduct
group meeting and finalize the group management norms and financial
management norms
1.
The members will decide and give a name to their group
2.
The group will decide the meeting place; meeting day and time for
their regular meetings.
3.
The group should conduct weekly meetings.
4.
The members of the group will sit in a round manner in their
regular meetings to facilitate face to face discussion and achieve
active participation of all the members in the decisions.
5.
The members of the group shall elect two representatives from
among the members through consensus.
6.
The group shall designate one of the members by rotation to
preside over the regular weekly meeting.
7.
The group shall introduce and maintain relevant Books of
Accounts.
8.
The group shall identify and engage a trained bookkeeper to write
the Books of Accounts and pay the remuneration from their
earnings.
9.
The bookkeeper shall be either a literate member of the group or
an outsider willing to work with the group.
10. The members through consensus will finalize the norms for
imposing fines on absentees, late comers and defaulters as a
deterrent so that the group activities will sustain for a longtime.
11. The members of the group shall decide the weekly savings to be
contributed by the members to the group based on the ability of the
poorest women.
Page 4 of 26
12. The group shall open a Bank Account in the name of the group and
authorize the two representatives to operate the account.
13. All decisions shall always be taken in the group meeting through
democratic process and consensus approach.
14. The group shall take up internal lending to the members from the
group fund by prioritizing the felt needs of the members based on
poverty status.
15. The group shall fix interest rate and installments for the loans given
to the members and recover the principal and interest as per the
installments.
16. The group shall conduct all transactions like writing the records,
sanctioning and disbursing of loans in the group meetings only.
17. The group records shall always be in the custody of the group
representatives, but not with the bookkeeper nor with any other
member.
18. The group shall conduct at least one transaction in a month with
the Bank
19. The group should decide the minimum cash balance to be
maintained with group representatives for meeting the emergency
needs of the members.
20. The group should decide the norms for the admission of new
members and withdrawal of old members with regard to their
savings contributions and returning of savings.
21. The group shall introduce a Masanivedika about its performance
and it shall be prepared by the Bookkeeper in the last meeting of
the month.
22. The group should get their records audited once in a year.
Page 5 of 26
4. Need and importance of Bookkeeping for an SHG:
1.
To record all the transactions of the SHG in a continuous manner
for enabling the members to understand them.
2.
Decisions taken by the group will be known to all the members
from time to time and it will promote them to take always right
decisions in their meetings.
3.
Bookkeeping will help in assessing the financial status of the group
like member’s savings, loans, attendance, group fund, recovery
percentage etc.
4.
It helps in building confidence and unity among the members.
5.
It promotes institutional development by increasing the credit
worthiness of the group.
6.
It enables the group to monitor its performance.
7.
By good Bookkeeping arrangements the scope of the group to
attract out side resources like Bank and other agencies will be
accomplished.
8.
Good Bookkeeping arrangements create transparency of its
transactions to its members leading to strengthening and
sustainability of the group.
9.
It brings recognition to the group in the eyes of the public
institutions.
10. Bookkeeping helps in rating of the groups performance.
Page 6 of 26
5 . SHG Bookkeeper Concept:
1.
In every SHG since there will be thrift and credit transactions, there
shall be a Bookkeeper to write the books of accounts of the group.
2.
The Bookkeeper is either a literate member of the group or an
outsider engaged by the group.
3.
The Bookkeeper writes all the records in the group meeting only.
4.
The Bookkeeper is a person hired by the group.
5.
The Bookkeeper is paid monthly remuneration from the earnings of
the group.
6. Bookkeeper Selection Criteria:
1) A literate member of the group willing to work as Bookkeeper shall
be selected.
2) If there is no literate member, the group can select and engage an
outsider willing to work as Bookkeeper.
3) The Bookkeeper shall be a local person and shall be available for all
the meetings.
4) The Bookkeeper must have studied at least up to 7th class.
5) The Bookkeeper must be good at Arithmetics.
6) The Bookkeeper shall possess legible hand writing.
7) The Bookkeeper shall respect the women and be loyal to the group.
8) The Bookkeeper shall not be a relative of the group leaders.
9) Women members shall be given preference.
Page 7 of 26
10) The Bookkeeper shall possess patience and service mindedness.
11) The Bookkeeper shall be a person hailing from poor house holds.
7. Bookkeeper role and responsibilities:
1. Bookkeeper is a person engaged by the SHG and is
accountable to the group only.
2. Bookkeeper receives his remuneration from the group out of
its earnings.
3. Bookkeeper shall attend 10 minutes before stating of the
group meeting.
4. In the group meeting, the Bookkeeper will sit by the side of the
group leader.
5. The Bookkeeper will receive all the records from the Leaders,
write all the records during the meeting and hand over them to
the Leader at the end of the meeting.
6. During the meeting he will write the records and read out all
the decisions and transactions for the benefit of all the
members.
8. Dos and Don’ts of the Bookkeeper:
SNo.
1
2
Do’s
SNo.
Don’ts
1
The Bookkeeper shall not
involve
in
the
cash
transactions of the group.
2
The Bookkeeper shall not
The
Bookkeeper
shall
attend the meeting 10
minutes before starting of
the meeting.
The Bookkeeper shall take
Page 8 of 26
SNo.
Do’s
Don’ts
SNo.
all the records from the
representatives
in
the
meeting itself.
influence decisions of the
3
The Bookkeeper shall write
all the records in the
meeting only.
The Bookkeeper shall not
take away the records to
the house.
4
The Bookkeeper shall read
out all the decisions and
resolutions
for
the
information of members in
their meeting as per the
Agenda from time to time.
5
At the end of the meeting
the Bookkeeper shall obtain
the signatures of all the
members in the minutes
book.
6
The
Bookkeeper
shall
handover all the records to
the group representatives at
the end of the meeting.
7
During the meeting the
Bookkeeper will bring to the
notice of the members the
information about important
items of the previous
meeting minutes, member
wise particulars of loan
installments to be repaid;
fines to be paid etc.,
6
8
The Bookkeeper shall be
willing to undergo all the
trainings.
7
9
The
Bookkeeper
shall
ensure that all the members
Page 9 of 26
group.
3
4
8
5
The Bookkeeper shall not
take loans from the group if
she / he is not a member of
the group.
The Bookkeeper shall not
indulge in bad practices like
tampering of records, over
writings etc.,
The Bookkeeper shall not
disclose
the
group
information, decisions and
resolutions to outsiders.
The Bookkeeper shall not
record any transactions
which are not taken place in
the meeting.
The Bookkeeper shall not
be biased towards some
members.
SNo.
Do’s
SNo.
Don’ts
are able to sign and learn
simple
arithmetics
for
improving their functional
literacy.
10
The
Bookkeeper
shall
prepare SHG Masanivedika
in the meeting, read out all
the
points
for
the
information and knowledge
of members and hand over
the report to the group
representatives.
11
The Bookkeeper shall Cooperate with the audit staff
by giving all the information.
12
The
Bookkeeper
respect the women.
shall
9. Books of Accounts to be maintained in an SHG:
1. Meeting minutes book,
2. Savings cum Attendance Register,
3. Loan ledger for small loans and big loans,
4. Cash book,
5. General Ledger,
6. Individual savings cum loan Pass books for
members,
7. SHG Maasanivedika
Page 10 of 26
10. SHG Bookkeeping flow chart:
Savings cum
Attendance
Register
Minutes
Book
Cash
Book
Loan
Ledger
Individual
Passbook
General
Ledger
SHG Maasanivedika
11. How to write various Books of Accounts.
11a.Meeting Minutes Book
Importance:
1) This is the main book in which all the transactions, decisions
and resolutions are recorded by the Bookkeeper.
2) This is the source book for all other registers.
Page 11 of 26
3) The SHG members shall ensure that all the transactions,
decisions and resolutions are recorded in the first instance in
the minutes book.
Meeting Minutes book Proforma:
Meeting No.
Meeting Date:
Meeting Day :
Meeting Time:
1. Name of the SHG
:
2. Name of the Village
:
3. Meeting place
:
4. Name of the member presiding over the meeting :
5. Total No.of members in the SHG :
6. No.of members attended the meeting :
Agenda of the meeting:1. Prayer:- All the members present will sing the song of “”Jeevithana
gelupundhani ……”
-
The Song will help the member to keep in view their common goal
and develop enthusiasm to achieve it.
2. Members’ introduction:
-
Each member will introduce herself by her name, groups name,
village name, village organization name and her savings amount.
-
The practice of members introduction will improve their ability to
speak freely without shyness and develop self confidence.
Page 12 of 26
3. Members’ Attendance:-
While the members were introducing themselves, the bookkeeper
will record the attendance in the register.
-
The names of the absentee members and late comers and the fines
to be imposed will be recorded as per the group norms.
-
This practice will act as a deterrent to the members and make them
alert and disciplined for their meetings.
4. Review of previous meeting decisions:
-
The Bookkeeper will read out the decisions of the previous meeting
and the group will review the following items:
a. Fines to be collected from the previous meeting absentees
and latecomers,
b. Loan installments to be collected from defaulters of the
previous meeting,
c. Previous meeting savings not paid by members if any,
d. Purchase of assets through the loans disbursed in the
previous meeting,
e. Asset verification report on the loans by the non loanee
members,
f. Remittance particulars of cash balance of previous meeting in
the bank account,
g. Handing over the previous meeting cash balance to the
presiding member of the present meeting,
5. Collection of Savings:
-
In the meeting the presiding member will collect the individual
savings from all the members and the Bookkeeper will record the
transactions including the names of the members not paid the
savings.
Page 13 of 26
6. Collection of loan installments:
-
In the meeting the presiding member will collect their individual loan
installments, principal and interest from the members and the
Bookkeeper will record member wise transactions including the
defaulters in the following manner:
Proforma:
SNo. Name of the Member
1
2
3
4
5
6
7
8
Purpose
Principle
Interest
Total
7. Sanction of new loans:
-
SNo.
In the meeting after collecting savings, fines and loan installments
the group will sanction new loans to the members based on the
priorities of the members and their needs. The Bookkeeper will
record member wise loans sanctioned in the meeting in the following
manner.
Proforma
Name of the
Member
Purpose
Loan
amount
requested
1
2
3
4
5
6
7
8
Page 14 of 26
Loan
amount
actually
sanctioned
No.of
Installments
Interest
rate
8. Community Investment Fund Loan from VO:
 Loan amount sanctioned by VO:
o No.of installments;
o No.of installments repaid;
o Monthly installment – Principle and interest;
o Installment amount repaid till the last meeting;
o Installment proposed to be paid as per the demand;
9. SHG Bank linkage:
 Loan amount sanctioned;
 No.of Installments;
 Monthly installment principle and interest;
 No.of installments repaid;
 Installment Amount repaid till the last meeting;
 Installment proposed to be paid as per the demand;
10. Receipts and payments statement;
The Bookkeeper will prepare receipts and payments
statement and place it in the meeting for discussion and approval of
the members.
Page 15 of 26
Proforma:
SNo.
Receipts
Amount SNo.
Payments
1
Opening Balance
1
Loans sanctioned to
members
2
Savings received
2
VO loan repaid
(Principle)
3
Principle collected
3
VO loan repaid
(Interest)
4
Interest collected
4
Bank Loan repaid
5
Fines collected
5
Bookkeeper
Honorarium
6
Amount withdrawn
from Bank
6
Conveyance Charges
7
7
Amount deposited in
the Bank
8
8
Closing Balance
Total
Amount
Total
11. Social issues:
The members will discuss on priority the social issues like child
labour, children education, nutrition support to pregnant and lactating
women, early child marriages, domestic violence, alcoholism etc.
12. Govt. Programmes:
Government programmes like NREGS, Indiramma housing, Pavala
Vaddi, Arogyasri etc will be discussed on priority.
13. Signature of the members:
At the end of the meeting the Bookkeeper will obtain the signatures
of all the members attended the meeting.
Page 16 of 26
11b. Attendance cum Savings Register
Proforma:
Meeting No:
Date:
S
No
Name of the
Member
B/F
Atte
ndan
ce
B/F
Savings
A
S
A
S A S A S
A
S
Total
Attendance
Total
Savings
1
2
3
4
5
6
7
8
9
10
Importance:
-
In this register member wise attendance and collection of weekly
savings are recorded by the bookkeeper.
It gives the details of the number of meetings held, No.of meetings
attended, percentage of attendance, member wise total savings
collected, and total savings in the group.
11c. Cash Book:The Bookkeeper shall write the cash book during the meeting, he will
record all the transactions like savings collected, fines collected, loan
repayments, amounts withdrawn from bank including opening balance on
the receipts side and savings refunded if any, new loans sanctioned,
amounts to be remitted to the bank account including the closing cash
balance on the payments side and tally the cash balance.
-
After writing the cash book the bookkeeper will make entries into the
loan ledger, individual pass books, general ledger, etc.,
Page 17 of 26
Cash Book Proforma:
Dat
e
Minute
s Book
Page
No
Receipts
Particulate
s
Gener
al
Ledger
Page
No
Amou
nt
Dat
e
Minute
s Book
Page
No
Payments
Particulate
s
Gener
al
Ledger
Page
No
Amou
nt
Balanc
e
11d. Loan Ledger for Small and Big loans
Small Loans
The members take various small loans in the weekly meetings for
consumption, health, education etc.. These small loans will be recorded in
the loan ledger indicating loan amount, Purpose, No.of installments,
Interest etc.
Small Loans Proforma:
Date of
Disbur
sement
Amount
Disbu
rsed
Pur
pose
No.of
Install
ments
Due
Date
for
Repay
ment
Date
of
Repay
ment
Page 18 of 26
Amount
Repaid
(Principal
+
Interest)
Over
Due
(P+I)
Loan
Balance
Signature of
the
Member
Big Loans
The members take various big loans for investments in income
generating activities and several other purposes. These loans will be
recorded in the loan ledger indicating loan amount, date of disbursement,
No.of loan installments, interest etc.
The members can take small loans and big loans simultaneously
as per their needs.
Big Loans Proforma:
Name of the Member:
Husband’s Name
Cash Book Page No.
Date of Disbursement
No.of Installments
Period of Installments:
Installment Amount Rs:
Amount Sanctioned:
Rate of Interest:
Purpose:
Revenue
Stamp
Signature of the Member
Repayment Schedule
S
No
Insta
llme
nt
Due
Date
Amount
to be
Repaid
Including
over due
Princi Inte
pal
rest
Date
of
Repayment
Repayment
Particulars
Prin
cipal
Inte
rest
Total
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Page 19 of 26
Over Due Particulars
Princi
pal
Inte
rest
Total
Loan
Balanc
e
Cash
Book
Page No.
11e. General ledger:-
In the general ledger head of account wise folios are allotted. The
Bookkeeper will post entries under each head of account from the
cash book.
-
From the general ledger balance available under each head of
account will be known.
-
From the general ledger the Bookkeeper will prepare receipts and
payments statement and income and expenditure statement if
necessary.
Index Proforma
S
No.
Name of the Account
1
Members savings
2
Loan Sanctioned to Members
3
Principal collected from Members
4
Funds received from VO
5
Funds received from Bank
6
Funds received from other source
7
Income heads
a) Interest received from Members loans
b) Fines
c) Resource Fees
d) Interest on Bank Balance
e) Other Incomes
8
Expenditure heads
a) Interest paid to VO
b) Interest paid to Bank
c) Bookkeeper Honorarium
d) Conveyance Charges
e) Miscellaneous Charges
Page 20 of 26
No. of Pages Allotted
From
To
Proforma:
Members Savings Account
Cashbook
Page No.
Date
Savings Collected
Savings Repaid
Total
Savings
Loans Sanction to Members
Date
Cashbook
Page No.
Total Loan
No.of
Total No.of
Loan
Amount
Loans
Loans
Amount
Sanctioned
Sanctioned Sanctioned Sanctioned
(in Rs.)
Loan Amount Collected from Members Account (Principal)
Date
Cashbook
Page No.
Amount Collected
Page 21 of 26
Total Amount Collected
VO Loan Account
Date
Cashbook
Page No.
Amount
Received
Amount
Repaid
Loan
Balance
Bank Transaction Account
Date
Cashbook
Page No.
Amount
Deposited in
Bank
Amount
Drawn from
the Bank
Bank
Balance
Income Account
Name of the Income Head:…………………………
Date
Cashbook
Page No.
Amount
Received
Page 22 of 26
Total Amount
Received
Expenditure Account
Name of the Expenditure Head:…………………………
Date
Cashbook
Page No.
Amount
Paid
Total Amount
Paid
11f. SHG Member Savings cum loan Pass Book:
-
The group will supply each member with an individual savings cum
loan pass book where members savings, small loans, big loans
details will be recorded.
-
Each member knows her savings in the group, small loans and big
loans sanctioned, installments repaid, overdue if any, and loan
balance etc.
-
The Bookkeeper will write the members pass books in the meeting
and hand over to them respectively.
Proforma:
Savings Particulars :
Date
Savings
Received
Others
Total
Page 23 of 26
Signature of the
Representative
Small Loans Proforma:
Date of
Disbur
sement
Amount
Disbu
rsed
Pur
pose
No.of
Install
ments
Due
Date
for
Repay
ment
Date
of
Repay
ment
Amount
Repaid
(Principal
+
Interest)
Over
Due
(P+I)
Loan
Balance
Signature of
the
Represe
ntative
Big Loans Proforma:
Name of the Member:
Husband’s Name
Cash Book Page No.
Date of Disbursement
No.of Installments
Period of Installments:
Installment Amount Rs:
Amount Sanctioned:
Rate of Interest:
Purpose:
Revenue
Stamp
Signature of the Member
Repayment Schedule
S
No
Insta
llme
nt
Due
Date
Amount
to be
Repaid
Including
over due
Princi Inte
pal
rest
Date
of
Repayment
Repayment
Particulars
Prin
cipal
Inte
rest
Total
1
2
3
4
5
6
7
8
9
10
Page 24 of 26
Over Due Particulars
Princi
pal
Inte
rest
Total
Loan
Balanc
e
Cash
Book
Page No.
11g. SHG Maasanivedika:
Every month the group will prepare Maasanivedika. It contains the
details like no. of meetings to be held, no. of meetings actually held,
savings collected, percentage of members attendance, financial status of
the group in terms of loans borrowed from different agencies, amount
repaid, over dues if any, loan balance etc.
-
It also contains income and expenditure statement of the group, a
detailed portfolio of the members loans in a separate format and any
other social activities taken up by the group etc.
-
Maasanivedika enables monitoring of SHG performance on monthly
basis. The Bookkeeper will prepare this report once in a month in
SHG meeting and read out for the knowledge and information of the
members and handover to the group representatives.
-
The group representatives will furnish their report to the Village
Organization(VO) in its monthly meeting.
Page 25 of 26
12. SHG Bookkeeper Training Plan:
S
No
Subject
Duration
Methodology
Participants
Training
material
Resource
Person
½ Day
Interactive
lecture
method
(ILM).
SHG
Bookkee
pers
Charts,
Markers,
Brown sheets
note books,
pens, pencils.
Master
Trainer
½ Day
Interactive
lecture
method and
role play
technique
- do -
- do -
- do -
1 Day
- do -
- do -
- do -
- do -
1 Day
ILM & Case
study
- do -
- do -
- do -
Project objectives:
1
-
Core values
-
Social
mobilization
approach
SHG concept:
-
2
SHG
Management
and
financial
norms,
-
SHG
meeting
process
-
SHG
meeting
Agenda
Need
importance
Bookkeeping
an SHG:
3
and
of
for
- SHG Bookkeeper
concept, Selection
criteria, Role and
responsibilities,
Do’s and Don’ts.
Meeting
Book:
minutes
4
- Savings
Attendance
Register
5
Cash Book
½ Day
ILM & Case
study
- do -
- do -
- do -
6
Loan Ledger &
Individual Savings
cum Pass Book
½ Day
- do -
- do -
- do -
- do -
7
General Ledger &
Maasanivedika
½ Day
- do -
- do -
- do -
- do -
8
Evaluation
feed back
½ Day
ILM & Case
studies
- do -
- do -
- do -
cum
and
Refresher training after 3 months.
Page 26 of 26