What is Stores Ledger? | Definition, Purpose, Pros and Cons

Stores Ledger refers to a document or statement that keeps the records of the value and quantity of different stock items issued, received and their closing balance. It is often compared with Bin Cards as both of these statements are used to record stock materials.


Finance Quiz

Test your knowledge about topics related to finance

1 / 10

Which of the following is an economic activity?

2 / 10

If  a bank thinks lending money  to a certain business is risky it will:

3 / 10

What is a diversified portfolio?

4 / 10

What is the purpose of financial ratios?

5 / 10

What is the difference between a savings account and a checking account?

6 / 10

What is a Roth IRA?

7 / 10

What is the yield curve?

8 / 10

What is a market capitalization?

9 / 10

What is a financial advisor?

10 / 10

A 'Debenture' is?

Your score is


However, it must be noted that Stores Ledgers do not need to be updated before transactions have taken place despite requiring regular maintenance. On the other hand, Bin Cards have to be kept up-to-date before the transpiring of the transactions.

Besides that, Store Ledgers contain the value of the materials and are maintained by the costing department. In contrast to that, Bin Cards do not consider the value of the stock items, and the store-in-charge is responsible for their maintenance.

For what purpose are Stores Ledgers used?

Stores Ledgers, in general, are used for managing inventory transactions. However, if one may ask about their specific purposes, the following will be identified under the list:

  1. Maintenance of Stores Ledgers helps get an idea of the quantity and value of a business’s stock items.
  2. They help the business owners to decide whether additional stock materials are required or not.
  3. Stores Ledgers help the accounting and auditing staff to compute the concluding value of the available stock materials.

How to maintain a Stores Ledger?

Stores Ledgers are generally assigned for each component of a particular material. When the costing staff simply records the stock items’ quantities, the resultant statement is referred to as the Bin Card. However, what distinguishes a Stores Ledger from a Bin Card is the presence of some extra columns.

The columns that make up a Stores Ledger include:

  1. The cost or value of the stock items.
  2. Inventory items received.
  3. Inventory items issued.
  4. Minimum stock items.
  5. Maximum stock items.

The maximum and minimum columns allow the business owners to have an idea of the level of stock items available and determine whether additional inventory items are required or not.

Consequently, the companies can order additional stock items when they find that the quantity of the available inventories has gone below the minimum level. As a result, the business owners never run out of the supply of stocks.

Besides that, the item’s value or cost column gives the costing clerk an idea regarding the amount of capital spent and received on the inventory items and the end value of the funds in hand.

Advantages of Stores Ledger

Management of Stores Ledgers helps the business owners in a variety of ways. Some of the significant advantages of Stores Ledgers include:

  1. They help in knowing the quantity as well as the value of available stock materials.
  2. Internal control in the management of inventory items can be established using stores ledgers.
  3. They facilitate calculating the cost and quantity of the actually available inventory items during annual counts and audits.
  4. The company owners become alert when the number of stock items falls below the minimum level as per the Stores Ledgers.

Disadvantages of Stores Ledger

Even though Stores Ledgers have several benefits, they are not really without any limitations. Some of the principal shortcomings of Stores Ledgers include:

  1. The large number of columns found in the stores ledgers make the computing process complicated.
  2. There are chances of clerical errors, as too many columns have to be filled during the updating process.
  3. The records found in store ledgers are not detailed. They are mere summarisations of the actual transactions.


  1. http://www.indianjournals.com/ijor.aspx?target=ijor:ijmss&volume=5&issue=4&article=043&type=pdf
  2. http://studymaterial.unipune.ac.in:8080/jspui/bitstream/123456789/7319/3/72%20Cost-I%20%20%20%20%20%28D%20TO%20I%29%20%20%20%20IMP%20DEFINITIONS.pdf
One request?

I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️