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CA Intermediate · Cost and Management Accounting · Material Cost

Which of the following is the correct description of the 'Bin card' maintained in a stores department?

A bin card is kept by the storekeeper and shows only quantities of receipts, issues and balance for each material item. It carries no rupee values; values appear in the stores ledger maintained by the costing department. This is why it is a quantitative stores record.

  1. AA record of quantities received, issued and balance of a material, kept by the storekeeper without any rupee valuesCorrect
  2. BA record of rupee values of materials issued, kept by the cost accounts department
  3. CA document by which the stores department asks the purchase department to buy material
  4. DA document recording the return of surplus material from the factory to stores

Explanation

A bin card is maintained by the storekeeper and records only physical quantities of receipts, issues and balance for each item. Values are recorded in the stores ledger kept by the cost department, so option 2 describes the stores ledger. A purchase requisition is the document that asks for purchase, and a material returned note records returns.

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