RETAIL MANAGEMENT | ASSIGNMENT

ASSIGNMENT 2 | STORE LEDGER / STOCK REGISTER

How is a stock register made / constructed and maintained?

A stores ledger is 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
a perpetual inventory system, since it tracks the current quantity of items on hand.
A stores ledger can be used for the following purposes:
By auditors, to see how well the company's inventory records compare to its onhand 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.
1.

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 the perpetual 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 scrapped

Thus, 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

RETAIL MANAGEMENT | ASSIGNMENT

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.

Types of stock ledger: There are generally two types of stock ledgers:
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 by the store keeper. While the Expendable ledger is a
ledger that is used to keep the 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 along with 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 on the stock ledger. When you start a new ledger first of all
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 giving the details of 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 into the stock ledger. 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 by the store keeper. 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 column the store keeper must sign there.
Issuance of Items: For the dead stock ledger the items are issued after the approval of the
committee constituted by the head of the 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.

RETAIL MANAGEMENT | ASSIGNMENT

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