what is store keeping?

Accounting theory of store keeping for board exam 

  

What do you understand by decentralized stores?

DECENTRALIZED STORES

This is a system where each department has its own store.

The purchasing and handling of materials are undertaken each department.

They set up a store near their department.

They purchase materials independently.

They take materials when they need.  

 

Write any two duties of store keeper.

State any two responsibilities of a store keeper.

STOREKEEPER, HIS DUTY AND RESPONSIBILITIES

The person who is responsible for store is known storekeeper.

He is head and authorized person for store control.

A good storekeeper must have the following qualities:

·       He must be hard working and honest.

·       He must have knowledge of accountancy.

·       He must possess leadership abilities to command his assistants.

·       He must have enough academic qualification according to organization etc.

 

The main duties of storekeeper:

·       To prepare purchase requisition note when materials reaches to re-order level.

·       To received purchased materials from receiving department.

·       To enter the details of materials in the bin card.

·       To store materials in their proper place for easy identification.

· To issue the materials to production department on the basis of ‘material requisition note’ etc.

 

The main responsibilities of storekeeper:

The storekeeper is responsible for the material, which he receives; therefore, at the time of materials receiving must verify the quantity, quality and the condition of materials.

·       He is responsible for the issue of material in time; therefore, he has to classify and codify and store materials at suitable place.

·       He is responsible for shortage of materials due to theft, damage and spoilage etc.

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What do you understand by codification of materials?

CODIFICATION OF MATERIALS

All the received materials in the store should be kept in systematic way.

When materials are required, they can be obtained quickly and easily.

Classification and codification of materials help to find out easily.

Classification and codification are systematic method to keep materials on proper place.

Generally, classification and codification go together.

Different organizations can use different codification according to their requirement. 

There are three common codifications; they are alphabetic method, numeric method and alpha-numeric method

 

What do you mean by bin card?

What is bin card?

Give the specimen of bin card.

BIN CARD

Bin card is a document of materials record. It is held in a stock room.

Large trade business organization use large stock room with a bin card to record a running balance of stock on hand.

Bin may be a place, rack, container, cupboard, room, hardboard cartoon etc where materials can be kept safe.

Bin card shows the quantity of materials like receipt of materials, issue of materials and balance of materials in chronicle date.

Bin card is also called tag and stock card.

 

 

Write the meaning of perpetual inventory system.

PERPETUAL INVENTORY SYSTEM

Perpetual inventory means continuous checking and supply of materials.

This continuous checking is done with the help of store ledger and storekeeper.

It helps to regular supply of materials to production department.

It is possible that the balance of stock shown by bin card may be differ from actual balance.

This different may be due to avoidable and unavoidable causes.

 

Mention the procedures relating to materials issue.

MATERIAL ISSUE PROCEDURE

Material issue is carried out by the storekeeper.

The materials should be issued at the right time, in right quantity and of right quality.

For these purpose, every organization must follow an issue procedure.

All issues should be recorded in the bin card by the storekeeper and in the stores ledger by cost department.

For the authorization of material issues, material requisition note is prepared.

 

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