Store Ledger
For incorporating different transactions of material viz, receipt, issue, balance and
transfer, two important records are generally kept:
1) Bin Card,
2) Stores Ledger
1) Bin Cards: These are maintained by the store keeper in the stores for each
class of material.
Specimen of bin card
ABC Co. Ltd.
Bin Card.
Description of materials ---- Maximum Stock Level----
Bin No-------- Minimum Stock Level---------
Code No--------- Reorder Level---------------
Store ledger File No--------------
Date Receipts Issue Balance
G.R.No. Quantity S.R.No. Quantity Quantity
2) Stores ledger: The stores Ledger provide a continuous records of stores
received, issue and the balance of every item in hand. It is kept in the costing
department. This ledger is maintained in order to ensure correct stores
accounting
Specimen of Store Ledger
ABC Co. Ltd.
Stores Ledger
Description of materials ---- Maximum Stock Level----
Bin No-------- Minimum Stock Level---------
Code No--------- Reorder Level---------------
Date Receipts Issue Balance
Qty. Rate Amount Qty. Rate Amount Qty. Rate Amount
Distinction between bin card and stores ledger
The main points of difference between bin card and stores ledger can be
summarized as follows :-
Sl. No. Bin Card Store Ledger
1 A. Record of Quantities only A Records of Both Qty and Values
2 Maintained by the Store Keeper Maintained by a clerk in the
in the Stores costing dept.
3 Normally posted before the Always posted after the
transaction takes place transaction
4 Each transaction is individually Transaction may be summarized
posted and then posted
5 It is not a basic accounting It is one of the Basic accounting
record. record.
Methods of Material Issue or Recording of Store Ledger:
1. Cost price Method: a) First in First and (FIFO)
b) Last in First ant (LIFO)
c) Specification price method
2. Average price method
a) Simple average
b) Periodical simple average
c) Weighted average
d) Periodical weighted average
3. Standard Price Marketed
4. Marketed price
5. Inflated price
Problem 1
Prepare a stores ledger using FIFO method of pricing the issue of stores from the
following information:
2020 Units
Jan 1. Balance in hand @ Rs 2 500
4. Issued 300
5. Received @Rs 2.25 400
9. Issued 200
16 Issued 50
23 Received @Rs 2.50 200
28 Issued 150
30 Received @Rs 2.40 50
31 Issued 300
Problem 2
Prepare a stores ledger under the LIFO method of pricing the issues of stores, using
the following information:
2020 Units
Jan 1 Balance in hand @ Rs. 1.10 per unit 100
2 Received @ Rs. 1.20 per unit 200
10 Issued 150
14 Received @ Rs. 1.30 per nit 100
18 Issued 150
23 Returned from the issues on 10th January 20
26 Received @Rs. 1.20 per unit 100
30 Wastage 10
31 Issued 110
Problem 3
Draw up a priced stores ledger card from the following particulars, units LIFO
method of valuation of issues:
2020
July 1 Opening balance 500 pcs @ Rs.2.00
3 Issue 70pcs
4 Issue 10 pcs
7 Receipt (From supplies) 200 pcs @ Rs. 2.10
9 Return From production department 20pcs
10 Shortage found 10 pcs
13 Issue 70 pcs
14 Receipt (From Suppliers) 100pcs @Rs. 2.20
18 Issue 300 pcs
26 Receipt (From Suppliers) 50 pcs @Rs. 2.00
30 Issue 60pcs
Problem 4.
The Particulars of receipts and issues of material in a factory in August, 2020 are
as under:
Aug. 1 Opening balance 1500Kg @ 12.00 per kg
2 Issued 100Kg
3 Issued 250 Kg
4 Issued 300 Kg
5 Received (purchase) 400 Kg @ 12.50 per kg
9 Issued 300 Kg
10 Received (purchase) 200 Kg @ 12.50Kg
11 Issued 300 Kg
12 Return From production department 20 Kg
13 Issued 450 Kg
16 Received (Purchase) 500 Kg. @ 13.00 per Kg
18 Issued 400 Kg
20 Return From production department 60 Kg
22 Issued 300 Kg
26 Received (Purchase) 400 Kg. @ 12.00 per Kg
29 Issued 200 Kg
Pricing of issues is to be done on FIFO basis. A shortage of 10 Kg was noticed on
16th August prepare the stores ledger account for the month of August 2020 in
respect of the material.
Problem 5
From the following details write stores ledger under simple average method
2020
Dec 1 Opening balance 100 Kg @ Rs 5.00
5 Received 50 Kg @ Rs 5.20
8 Issued 120 Kg.
10 Issued 10 Kg.
15 Received 80 Kg. @ Rs. 5.40
18 Issued 50 Kg
20 Received 100 Kg @ Rs. 5.60
25 Issued 40 Kg
28 Issued 60 Kg
The stock verifier found a shortage of 10 kg on 16-12-20 and another shortage of
10 kg on 26.12.20
Problem 6
The following are the receipts and issues of stores material Y in a manufacturing
concern:
2020
July 1 Opening stock 100 units at Rs. 10 per unit.
2 Issued 25 units to Department A.
7 Received 425 units at Rs. 11 per unit
10 Issued 200 units to Department B.
12 Returned to store 10 units from Department A.
15 Returned to vendor 20 units out of the quantity received on 7th
17 Received 10 Units at Rs 12.50 per unit
25 Received 100 units at Rs 10 per unit
29 Issued 200 units to Department B.
30 Received 100 units at Rs. 11 per unit.
Enter the above truncations in the stores ledger account of Material Y, using the
average cost (weighted) Method. (Average cost to be calculated correct to two
decimal places of a rupee.)
