Both Bin Card and Store Ledger are using to control the overall movement of the inventory items. These documents are kept in loose leaf or card type form.
What is Store Ledger?
Store Ledger is the subsidiary ledger of the cost ledger that tracts the movements of inventory with the value of the inventory.
Store Ledger is the document kept by the Costing Department for each item of materials. The store Ledger normally maintains with loose leaf or card type form. Materials movements either inward or outward is recorded in quantity, rate and value and the balance of the material after each movement.
The following information is to be mandatorily inserted in the Store Ledger:
- Quantity of the materials
- Types of Materials
- Rate per unit
- Value of the materials.
Store Ledger is usually considered as the Subsidiary Ledger of Cost Ledger A/c.
What is Bin Card?
Bin Card also called as ” Stock Card” or “Bin Tag” using to record all the receipts and issues of the stocks from the store department. This cards records the quantity of the materials and show the movements such as receipts, issues and balance of the materials.
The storekeeper is responsible for recording every receipts and issue of stock from the store. Bin Card only record the quantity of the stock where store ledger maintain both quantity and value of the materials. As Bin Card updated during every receipts and issue, the stock of particular items can easily find out. In a Bin Card the Level of Stock such as Maximum, Minimum and Reorder Level are clearly stated. Like Store Ledger, this document also maintain with loose leaf.
Difference between Bin Card and Store Ledger
| Bin Card | Store Ledger |
| Bin Card only records the quantity of the materials. Materials movements such as receipts, issues, and balances of materials are shown in quantity. | Store Ledger is the subsidiary ledger of the cost ledger that tracts the movements of inventory with the value of the inventory. |
| Bin Card only recorded the stock movements i.e receipts, issues and balance of inventory. | Store Ledger is the accounting records of the inventory. |
| Store Keeper maintains the Bin Card | Costing Department maintains the Stock ledger. |
| Bin Cards are | Store Ledger updated periodically |
| Bin Card is a stock record in the true sense | Store ledger is a stock control record |
| Bin Card cannot provide closing stock value for preparation of financial profit & loss statement | Store ledger can provide closing stock value to prepare financial Profit & Loss Account. |
| The officer in charge of the Bin card is responsible for any | The personnel in charge of the Store Ledger is not responsible for any such discrepency |
| Interdepartmental transactions are not recorded in Bin Card | Interdepartmental Transactions are recorded for costing purpose |
Discrepancy Between Bin Card Balance and Store Ledger Balance
Same documents are used to make entry in Bin Card and Stores Ledger. So, the balance (quantity) in the two records should be equal. Any discrepancy may be raised due to following reasons:
- Wrong entry made in both records or in any
- Wrong casting of balance in any or both
- Missing of documents
Bin Cards and Store Ledger should be reconciled independently on the basis of documents that were used for entries.
Format of Bin Card and Store Ledger
BIN CARD
BIN No………………… Minimum Quantity……………………
Code No……………….. Ordering Level…………………………….
Item/Material/Article……………….. Maximum Quantity………………………
Store Ledger Folio…………………….
| Date | Quantity Received | Quantity Issued | Balance | Remarks |
Prepared by………………………………. Checked by……………………..
Signature………………………………. Signature…………………………..