Presentation is loading. Please wait.

Presentation is loading. Please wait.

Cost Accounting Material Accounting (Stores and Material Records) Prof.Uday Teke Bin CardStore Ledger.

Similar presentations


Presentation on theme: "Cost Accounting Material Accounting (Stores and Material Records) Prof.Uday Teke Bin CardStore Ledger."— Presentation transcript:

1 Cost Accounting Material Accounting (Stores and Material Records) Prof.Uday Teke Bin CardStore Ledger

2 Prof.Uday Teke Bin Card A bin card is also known as bin tag or stock card and is usually hung up or placed in shelf, rack or bin where the material has been kept. Bin card is a record of receipt and issue of materials Quantity of stores. Quantity of stores received is entered with receipt column and the quantity of store issued is recorded in the issue column of Bin Card. Balance of quantity of stores is ascertained after every receipt or issue. It shows the balance of the stock at any moment of time. Bin Card is maintained by the store-keeper. He is answerable for any difference between physical store and the balance shown by the Bin Card. Thus Bin Card does not only record the receipt and issue of the stores but also assist the store keeper for control of the stock. For each item of stores minimum level, maximum level and ordering level are shown in the part of the Bin Card. By seeing the Bin Card the store keeper sends the material requisition for the purchase of materials from time to time. Bin cards can also be in the form of loose sheets which can be maintained in a ledger kept in the stores.

3 Prof.Uday Teke

4 Advantages of Bin Cards Prof.Uday Teke (i) There would be less chances of mistakes being made as entries will be made at the same time as goods are received or issued by the person actually handling the materials. (ii) Control over stock can be more effective, in as much as comparison of the actual quantity in hand at any time with the book balance is possible. (iii) Identification of the different items of materials is facilitated by reference to the Bin Card the bin or storage receptacle.

5 Prof.Uday Teke Disadvantages of Bin Cards (i) Store records are dispersed over a wide area. (ii) The cards are liable to be smeared with dirt and grease because of proximity to material and also because of handling materials. (iii) People handling materials are not ordinarily suitable for the clerical work involved in writing Bin Cards.

6 Prof.Uday Teke Store Ledger Store ledger is kept in the costing department/ store accounting and is identical with the bin card except that receipt, issues and balances are shown along with their money values. This contains an account for every item of stores and makes a record of the receipts, issues and the balances, both in quantity and value. Thus, this ledger provides the information for the pricing of materials issued and the money value at any time of each item of stores

7 Prof.Uday Teke Store Ledger

8 Prof.Uday Teke Advantages of Stores Ledger 1.It enables distribution of work among a number of clerks due to which receipts and issues are posted quickly and regularly. 2.It enables the stock records to be centralized in case of an organization having a number of depts. 3.The accuracy of depts. can be mechanically tested more accurately. 4.The records are clearer and neater. Also the recurring cost of maintaining them is much less than those kept manually. If up to date records are available the management will be able to exercise a greater control over quantities held in stock from time to time which may result in a great deal of saving in both the amount of investment in stock and their cost

9 Prof.Uday Teke Bin cardStores Ledger A record of quantities onlyA record of both quantities and values Bin card is maintained by the storekeeper in the stores Store ledger is maintained by a store officer in the costing department Normally posted just before the transaction takes place Always posted after the transaction takes place Each transaction is individually summarized and posted Transactions may be posted periodically Usually kept inside the stores Usually kept in cost accounting department Bin card is not pure accounting recording Store ledger is the basic accounting recording Difference between Bin Cards and Store Ledger

10 Prof.Uday K.Teke M.Com.SET. NET E-Mail-uday.teke@gmail.com Mob.9970242041 Thank You


Download ppt "Cost Accounting Material Accounting (Stores and Material Records) Prof.Uday Teke Bin CardStore Ledger."

Similar presentations


Ads by Google