Question

To issue and running balance of certain items of stock in inventory, which of the following keeps a record of items?

• A. Bin cards
• B. Stock items
• C. Quantity account
• D. Value account

Hint:

Key differences to keep in mind for examinations: - Bin Card $\rightarrow$ Maintained by the Storekeeper, contains quantities only, kept in the physical warehouse. - Stores Ledger $\rightarrow$ Maintained by the Cost Clerk, contains both quantities and pricing values, kept in the accounting office.

Answer 1

The Correct Option is A

Concept: In physical stores management and warehousing operations, it is critical to log quantitative adjustments at the precise physical storage location (the "bin," shelf, or rack) whenever materials are deposited or withdrawn. The standard operational document utilized for tracking these real-time modifications directly inside the storage bay is a Bin Card. It tracks material quantities chronologically, listing receipts, issues, and providing an updated running balance.

Step 2: Analyzing the functionality of a Bin Card versus accounting alternatives.
Let us distinguish the primary documentation tools used in inventory control:
• Bin Card: Maintained directly by the physical storekeeper right next to the stock container. It records only the quantitative physical parameters (quantities received, issued, and balances on hand) immediately following a transaction.
• Stores Ledger: Maintained within the cost accounting department. It mirrors the bin card but logs both physical quantities and financial valuations (monetary cost).
• Quantity/Value accounts: These refer to broad ledger balances and summary entries in financial software packages rather than the localized physical tracking documents used to record dynamic balances upon item issuance. Thus, the specific physical tool designed to log receipts, issues, and maintain a running balance at the point of storage is the Bin Card. This matches Option (1).