Introduction
A document prepared by a storekeeper that records the quantity movement(receipt, issue and remaining balance) of material is called bin card or stock card. On the other hand, store ledger or subsidiary ledger refers to the document or record prepared by cost accountant that shows both quantitative (number value) and qualitative (monetary value) movement of materials and supplies. In bin card posting are made before transaction but in store ledger entries are made after the transaction.
Difference Between Bin Card And Store Ledger
The main dissimilarities or difference between bin card and store ledger can be highlighted as follows:
1. Meaning
Bin Card: It is a stock record that contains quantitative movement (receipt, issue and balance) of materials.
Store Ledger: It is a document that contains both quantitative and qualitative (monetary value) movement of materials.
2. Also Called
Bin Card: It is also called 'stock card'
Store Ledger: It is also called 'subsidiary ledger'
3. What Is It?
Bin Card: It is a rough recording of materials movement.
Store Ledger: It is detail and up to date recording of material movement.
4. Recording Of
Bin Card: It records the quantity or volume of materials such as how much materials received, how much issued and how much remained in the stock
Store Ledger: It records the quantity (volume) and monetary value of stock received, issued and remained.
Bin Card: It is prepared and maintained by store department and storekeeper is a responsible person.
Store Ledger: It is prepared and maintained by accounting department and cost accountant is a responsible person.
6. Skill And Knowledge
Bin Card: No special knowledge or skill is required to maintained bin card.
Store Ledger: Some accounting knowledge and skill is required to maintain store ledger.
7. Interdepartmental Transaction
Bin Card: It does not record interdepartmental transactions.
Store Ledger: It shows interdepartmental transactions.
8. Posting/Entries
Bin Card: Posting or entries are done before transaction.
Store Ledger: All entries are made after transactions.
9. Individual Transaction
Bin Card: It shows each and every transaction because it is updated after each transaction.
Store Ledger: It does not record individual transaction because it is updated periodically.
10. Place
Bin Card: It is maintained and placed in the store.
Store Ledger: It is maintained and placed in accounting department.
Basis
|
Bin Card
|
Store Ledger
|
Introduction
|
Quantitative recording of the movement of stock
|
Both quantitative and qualitative recording of movement of stock
|
Known As
|
Stock Card
|
Subsidiary Ledger
|
Recording Of
|
Quantity of stock received, issued and remained
|
|
Prepared By
|
Store Department
|
Accounting Department
|
Knowledge/Skills
|
Not Required
|
Required
|
Nature Of Record
|
Rough
|
Up-to-date
|
Interdepartmental Transaction
|
Not recorded
|
Recorded
|
Entries Made
|
Before Transaction
|
After Transaction
|
Individual Transaction
|
No
|
|
Placed/Kept
|
In the store
|
In accounting department
|
Distinction Between Bin Card And Store Ledger In Short
- Bin card is a quantitative recording of the movement of materials. But store ledger records both quantity and values of materials.
- Bin card is a rough record of materials movement. On the other hand, store ledger is a detail accounting record.
- Bin card records individual transactions. In contrast, store ledger records summarized transactions.
- Bin card is prepared by the storekeeper. Store ledger is prepared by the costing department.
- Bin card avoids interdepartmental transactions. But Store ledger records such transactions also.
