Project Study (BS Accountancy) -- University of the Cordilleras, Baguio City, 2013.

Includes bibliographical references.

Summary:
This research aims to design a better loans receivable system. It was made to resolve the problems encountered by the cooperative to have an easier way of loaning process, to be able to have a low cost but efficient and effective system that will benefit the cooperative. After the information was gathered, this study will answer the following questions:. --

1. What are the processes of the existing loans receivable that was used by the cooperative?
The processes don in loaning system is that the members' avails manually that takes time on both parties. The clerk all responsibilities such as giving loan application loan and accepting payment from the member who wish to pay personally. --

2. What are the common problems faced by the cooperative with their existing loans receivable system?
It is identified that the clerk has doing manual process of recording transactions which are prone to human error which would result to unreliable financial statements. --

3. What are the possible solutions that the clerk needs to do to minimize the problem?
Used of Microsoft excel- using of Microsoft excel is sometimes ineffective because it can create human error by inputting formulas that will lead to inaccurate date.
Additional manpower- additional employees also mean additional expenses in the part of the cooperative and there will be no assurance that the newly hired employee will perform its responsibilities.
Computerized system- all transactions will be done by the computer automatically such as the loan processing and verification, recording of membership, computation of loan interest and monthly amortization as well as surcharges and penalties, generation of reports and updating of records. --

4. What will be the suggested loans receivable system and its advantage to the cooperative?
The computerized loaning system would increase the effectiveness of bookkeeping and accounts receivable that will give more benefits to the organization like savings due to unnecessary expenses incurred. It will also minimize the time consumed by the clerk on recording and they will be going to have more accurate and reliable records.