Using the Jutang Credit Cooperative data, what is the net surplus?

• A. P220,000
• B. P270,000
• C. P217,000
• D. P223,000

Answer: (B)

Net surplus is the amount earned by a credit cooperative after all income has been counted and all costs and allocations have been deducted. It shows the financial cushion available for reserves or patronage refunds to members.

To determine it, add up every source of income the cooperative reports—such as interest on loans, service fees, fines, income from investments, and other miscellaneous receipts. Then subtract all operational and financial costs—such as interest on borrowings, salaries and benefits, office expenses, depreciation, and any provisions for loan losses—as well as any required allocations to reserves or patronage funds. The remaining figure is the net surplus.

In the Jutang Credit Cooperative data, applying this calculation yields the surplus amount that corresponds to one of the given options. That remaining figure is what the correct choice represents, because it is the actual net result after accounting for all income and all expenses and allocations.