CA Intermediate · Cost and Management Accounting · Material Cost
Which one of the following is a feature of the Bin Card maintained in the stores, as distinct from the Stores Ledger maintained in the costing department?
The Bin Card records receipts, issues and balances in quantities only and is maintained by the storekeeper. Values are recorded in the Stores Ledger kept by the costing department, so the statement that the Bin Card shows quantities only is correct.
- AIt records receipts and issues in quantities onlyCorrect
- BIt records receipts and issues in both quantities and values
- CIt is prepared by the cost accounting department
- DIt is posted from the Goods Received Note's rate column
Explanation
A Bin Card is kept by the storekeeper and shows only quantities received, issued and balance. The Stores Ledger, kept by the costing department, shows both quantities and values. Hence the option mentioning both quantities and values describes the Stores Ledger, not the Bin Card.
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