Difference Between Bin Card and Stores Ledger:- Bin card refers to a document which records the quantity of material received and issued by the shops. In contrast, Stores Ledger is a ledger (accounting record) which maintains the record of transit of goods in and out of stores, both in quantitative and monetary terms.
Permanent and Periodic Inventory System are two systems which record the movement of stock held by the Stores Department. Perpetual inventory systems keep records of materials every now and then. This includes bin cards and stores ledgers for tracking various items.
A store ledger is similar to a bin card, except that the store ledger contains the balance of receipts, issues and materials in monetary value along with its quantity. Take a read of the article to know the difference between bin card and stores ledger.
Difference Between Bin Card and Stores Ledger
Bin card refers to a document which records the quantity of material received and issued by the shops. In contrast, Stores Ledger is a ledger (accounting record) which maintains the record of transit of goods in and out of stores, both in quantitative and monetary terms.
Permanent and Periodic Inventory System are two systems which record the movement of stock held by the Stores Department. Perpetual inventory systems keep records of materials every now and then. This includes bin cards and stores ledgers for tracking various items.
A store ledger is similar to a bin card, except that the store ledger contains the balance of receipts, issues and materials in monetary value along with its quantity. Take a read of the article to know the difference between bin card and stores ledger.
Comparison chart
| basis for comparison | Bin card | Store ledger |
| meaning | Bin card refers to the quantity record of receipts, issuance and balance of materials in stores. | Stores lead to a subsidiary ledger, which keeps track of each and every transaction related to material in the stores. |
| What is this? | This is a recording document. | This is an accounting record. |
| responsibility | shopkeeper | cost accounting department |
| place | Kept inside the stock room. | kept outside the stock room. |
| Description | Contains quantitative details only. | It includes both quantitative and monetary details. |
| Interval Transfer | Bins are not shown in the card. | Indicated in the store ledger. |
| Entries | Entries are posted when a transaction occurs. | Entries are posted when a transaction occurs. |
| Recording | Transactions are recorded individually. | Summarized transactions are recorded. |
Definition of bin card
In cost accounting, bin card is used to mean a document that keeps a record of the items kept in stores. The bin contains a container or space to store the material, and with each bin, a card is placed, containing information on the material received, issued and returned. In addition, it contains details regarding the number of items, their description and relevant notes (if any).
Bin cards are used to quantitatively record items received, issued and retained in stores. As and when the transaction takes place, the entry is made in the bin card, after which the material is taken from the shops.
At the time of receiving the material, the BIN is entered in the Receipt column of the Note to BIN Card, and on transfer of the goods to various departments, the Admit Card is made in the Issue column of the Card.
Definition of stores ledger
Stores ledger can be defined as a record maintained by the cost accounting department of the enterprise. It is a combination of cards or sheets, maintained to keep a record of quantity and cost of material received in stock, transferred and retained in stock. This includes an account for each item in the stock room that keeps a record of:
- Quantity
- Type
- Rate
- Amount
Store Ledger is a subsidiary account for Cost Burner (Main). It is used to keep track of all receipts and issue material related transactions. And to do so, entries are made in the respective columns for various transactions. Recording of additional information for quantity on order and reserve can also be done.
- Bin card in stock card can be understood as a record of receipts, quantity and balance of each item. In contrast, stores account is an accounting record of each transaction in respect of materials in the stock room.
- In cost accounting, bin card refers to a recording document, while store ledger indicates an accounting record.
- Maintaining the BIN card is the responsibility of the store keeper. On the other hand, the cost accounting department of the enterprise maintains the stores bookkeeping.
- Bin card is maintained inside the godown or shops, but the store ledger is always kept outside the shops.
- Bin card contains only quantitative details, i.e. only the quantity of material received, issued, returned and which are entered in stock. The store ledger, in contrast, maintains a record of both the quantity and cost of materials received and issued and received.
- Transactions relating to interdepartmental transfers are not recorded in the BIN card, as they are only recorded in the store ledger.
- Bin card entries are entered as and when the transaction takes place, i.e. first the entry is made, and then the goods are taken or taken from the stock room. In contrast to this, entries are posted in the store of stores after the transaction is completed.
In case of BIN cards, each transaction is recorded separately, but in stores, the transaction transactions