In case of school books when we do work in school books we do with proper care but if it is rough book than we do work as we like, in case of manufacturing companies similar concept is there while bin card is like a rough book and stores ledger is like a school book. Bin card and stores ledger both terms are used in the context of cost accountancy while both are used for record maintenance of goods coming in to the company and goods going out from the company but still they both are not same and that is the reason why one should look at the differences between bin card and stores ledger –
Bin Card and Stores Ledger Differences
Meaning
Bin is present in everyone’s home; it is basically a place where all miscellaneous items are kept together. In the case of companies there is bin but it is very big and that is the reason why company maintains bin card which records the quantity of goods received, issued and balance of goods while stores ledger refers to accounting record of material coming in as well as going out of the company both in terms of quantity as well as value terms.
Maintenance of Card and Ledger
While bin card is maintained by the storekeeper who is responsible for the goods lying in the store but store ledger preparation is the task of costing department who not only maintains store ledger but also maintain other books of accounts of the company.
Updating of Books
In case of bin card storekeeper updates the bin card as soon as goods are received or dispatched from the store while in case of store ledger books of accounts are updated periodically and not instantly. In simple words, if goods are taken 10 times in a day from the store than storekeeper will have to make entry 10 times which is not the case with stores ledger.
Inter-Department Transfer
In case of bin card, only those goods which are going out from company are recorded thus ignoring the inter-department transfer of goods but as far as stores ledger is concerned it records all transactions whether such transactions are with outside parties or transactions which are between departments.
Responsiveness
In case of bin card, the storekeeper can immediately know whether there is a shortage of goods because storekeeper makes the entry immediately and hence company can take the decision accordingly whereas in case of stores ledger since records are updated periodically it takes time to know about the exact position of goods available in the store. In simple words bin card is like twitter news feed just like Twitter provides you the news instantly in the same way bin card system will tell you about the position of goods instantly and stores ledger is like a newspaper just like newspaper tell news 1 day after the news in the same way stores ledger tell about the position of stock of goods after some time and not immediately.
As one can see from the above that both bin card and stores ledger are different from each other and that is the reason why one should not make the mistake of considering both as one and the same thing.