STORE LEDGER

STORE LEDGER

Store ledger is maintained under Perpetual Inventory system by costing office and deals with the quantities and values of materials received, issued and balance in hand. It is an assemblage of cards or sheets, which are maintained to keep a record of quantity and cost of material received, transferred and remained in stock. Materials movements either inward or outward are recorded in quantity, rate and value and the balance of the material after each movement. It comprises if an account for each item in the stock room and keeps the record of:

• Quantity
• Type
• Rate
• Amount

FEATURES OF STORES LEDGER

The features of Store Ledger is as follows:

• It is subsidiary ledger to the cost ledger that transacts the movements of inventory with the value of the inventory.
• It is an accounting record of the inventory.
• It is maintained by cost accounting department.
• Store Ledger is updated periodically.
• It is kept outside the stock room.
• It contains both quantitative and monetary details.
• It records inter-departmental transfer.
• The summary of transactions is recorded in this.
• Stock Ledger can provide closing stock value to prepare financial Profit and Loss Account.
• The personnel in charge of the store ledger are not responsible for any such discrepancy.

FORMAT OF STORES LEDGER

ADVANTAGES OF STORE LEDGER

The advantages of Store Ledger is as follows:

• It works greatly as internal control system.
• It may be made in manual or in computerized form.
• It tells the quantity as well as value of the materials.
• It facilitates the ascertainment of cost of materials received.
• It facilitates the internal check system.

DISADVANTAGES OF STORES LEDGER

However, stores ledger suffers from some drawbacks which are as follows:

• It contains the summary of the records not details.
• The transactions are not updated individually.
• It leads to overlapping of work.

Also Study	Also Study	Also Study	Also Study
Cost Accounting	Scope of cost accounting	Elements of cost	Types of cost
Material control	Perpetual inventory system	Pricing of materials	Bin Card
Stores Ledger	Incentive plans	Overheads	Idle time
System of wage payment in cost accounting	Time rate vs piece rate wage system	Cost Center	Labour Turnover
Difference between management accounting and cost accounting	Allocation and apportionment of overheads	Allocation vs Apportionment of overheads	Absorption of overheads
Over absorption and under absorption of overheads	Activity based costing	Traditional costing vs ABC system	Reconciliation of accounts
Unit costing	Cost sheet format	Cost sheet vs production sheet	Job costing
Batch Costing	job costing vs batch costing	Contract costing	Job Costing vs Contract costing
Process Costing	Process costing vs job costing	Joint products	By Product
Equivalent production	Marginal costing	Application of marginal costing	Cost volume profit analysis
Tools and techniques of marginal costing	Budget	Break even point	Process of budgetary control
Advantages and limitations of budgetary control	Budgetary Control	Zero base budgeting	Standard Costing
Variance Analysis	Standard costing vs budgetary control	Management accounting vs cost accounting	Cost accounting vs financial accounting