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

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.
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STORE LEDGER

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