A. Stores Ledger: A store ledger is a record of stock wherein both quantities and values are shown. Correct stores accounting is of utmost importance and is to be done carefully. The ledger may be of a loose leaf or cord type. Each account represents an item of material in stores. This document is a key to stock control and the total value of an individual stock item can be found by multiplying the quantity by the price and then a reconciliation can be made with the stock account in the financial books.
Additional information is noted in the bin cards regarding the quantity in order and the quantity received together with value may also be recorded in the stores ledger. But the common practice is to record such transactions only in one set of columns. Like bin cards the store ledger sheets or folios are maintained in the store ledger for each item of material. The ledger sheets are generally in the loose leaf form.
Separate binders are used for each class of and another method is to arrange the binders according to location of stores separately for each godown/warehouse. The sheets are numbered serially to avoid risk of loss of sheets. In some concerns stores ledgers are maintained as a bound volume which rules out the possibility of loss of folios.
The loose leaf system has the advantage of flexibility and facility in handling and posting.
Comparison between Stores Ledger and Bin cards
A store ledger is a stock record which shows the receipts, consumption and balance of raw material both in quantities and values. This is usually maintained by the Store Accounting Section and it not within the purview of the storekeeper. In other words, the storekeeper has no access to the stores ledger.
Difference between the Bin cards and Store ledger
The difference between the bin cards and store ledger may be summed
up as under:
1. Store Ledger is maintained by the Stores Accountant where Bin cards is maintained by the Store-keeper
2. Store Ledger is record of both quantities and values but Bin cards is record of quantities only.
3. In Store Ledger, Sometimes transactions may be posted periodically and in total whereas in Bin cards, Transactions are posted individually.
4. In Store Ledger, Transactions are posted after they have taken place but in Bin cards, they are posted just before the transactions take place
5. The Stores Ledger normally maintains detailed information of material reserved and ordered. But the bin card does not normally contain the detailed information of materials reserved and ordered and is only a record of actual material movements.
(b) Stores Requisition: Stores requisition is also known as Material Requisition. While issuing materials from store; it is necessary that proper control is exercised to ensure that the material issued have been authentically authorized by proper person and every issue of material has been properly accounted for.
While issuing materials, the storekeeper must ensure that the materials are issued against material requisition slips which have been properly signed by the persons who are authorized to do so Material requisition slips are prepared in triplicate-two copies are sent to the Stores Department and the third own reference.
The storekeeper while issuing material posts these requisition in the bin cards and sends the first copy of the requisitions slip to the Stores Accounting Section and retains the second copy with him for future record. While issuing material, he must ensure that the material requisition slip is in order.