RETAIL MANAGEMENT | ASSIGNMENT

ASSIGNMENT 2 | STORE LEDGER / STOCK REGISTER

How is a stock register made / constructed and maintained?

Astores ledgeris a manual or computer record of the raw materials and production supplies stored in a production facility. It is maintained by the person responsible for these assets, such as the warehouse manager. A stores ledger is particularly useful for maintaining aperpetual inventory system, since it tracks the current quantity of items on hand.A stores ledger can be used for the following purposes:1. By auditors, to see how well the company's inventory records compare to its on-hand quantities.2. By the purchasing staff, to determine when and in what quantities to purchase additional inventory items.3. By the accounting staff, to use as the basis for calculating the ending cost of inventory on hand.The information listed on a stores ledger can follow one of two formats: Unit quantities only. The ledger shows the beginning unit quantity of an inventory or supplies item, plus or minus any subsequent additions to or subtractions from stock. When used for this purpose, the stores ledger may instead be referred to as a bin card. Costed quantities. The same as the first format, except that the cost of the items is also listed in the ledger.Under theperpetual inventory system (Store ledger), an entity continually updates its inventory records to account for additions to and subtractions from inventory for such activities as: Received inventory items Goods sold from stock Items moved from one location to another Items picked from inventory for use in the production process Items scrappedThus, a perpetual inventory system has the advantages of both providing up-to-date inventory balance information and requiring a reduced level of physical inventory counts. However, the calculated inventory levels derived by a perpetual inventory system may gradually diverge from actual inventory levels, due to unrecorded transactions or theft, so you should periodically compare book balances to actual on-hand quantities, and adjust the book balances as necessary.

Typesof stockledger: There are generally two typesof stockledgers:

Dead Stock Ledger Expendable Stock Ledger

Dead stock Ledger is a register that is for the items that are permanent and not consumable and these items cannot be issued bythe storekeeper. While the Expendable ledger is a ledger that is usedto keepthe record for the consumable items. These items can be issued at any time after the purchase.

How entries are made Receipt Voucher: Whenever a new item is purchased it is first taken of receipt voucher wit all details from where the items have been got and by whom it is purchased, date of purchase, and quantity of the items, price of the item and the total price of all the items purchased. Give a proper number to the voucher alongwith date.At the end a certificate is given that is certified that all the items have been received and taken on the charge ledger properly.

Starting a new ledger: After keeping the record of the items received on the receipt voucher next step is to take the items onthe stockledger. When you start a new ledgerfirst ofall give it page numbering and then paste a certificate saying that this ledger contains number of pages. If your ledger contains 100 pages then you can give a certificate that this ledger contains 100 pages. After that you fix index page givingthe detailsof the items and their page numbers. Each item should be entered on a separate page.

Entry in the Ledger: After taken the items on the receipt vouchers, then you have to enter these items intothe stockledger. For the dead stock ledger here are many columns. Enter the newly received item in the column of serviceable item and mention the quantity of the items and at the end there is a column that must be signed bythe storekeeper. In the first column enter the voucher number and the date.

In expendable ledger enter the item in the column of receipt items with their quantity and in the last columnthe storekeeper must sign there.Issuance of Items: For the dead stock ledger the items are issued after the approval of the committee constituted bythe head ofthe department. If the committee approves that some items are repairable and some items are un-serviceable able then keep the proper entry of the items according to the recommendation of the committee.For the issuance of the items of the expandable items there is no need of committee. These items are just issued whenever they are used and consumed. For both the issuance processes an issue voucher is compulsory. After entering the items to be issued there must be given a certificate saying The above mentioned items have been issued / used and stuck off from the ledger.Sample Report

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