Store accounting involves recording the movement of stock, including quantities issued and received. Its key objectives are to provide information about the value of materials issued and received, determine ordering levels without inspecting stock, and indicate quantities and values on hand. Proper store accounting offers advantages like providing information, maximizing potential, controlling waste, and aiding insurance claims. Common methods for valuing materials issued include FIFO and LIFO. FIFO involves issuing the oldest materials first at their original purchase price, while LIFO issues the newest materials first at current replacement cost. Both methods have advantages in simplicity and disadvantages in complexity with fluctuating prices.

1. Store accounting is recording movement
of stock .
*When , which quentity issued and
received.
Objective -: Provide information -:
provide information about value of How
much matei issued and received.
*Ordering level -: Objective of store

2. accounting to determine ordering level
without inspection the stock of
materials.
*Indicating quentity and value -:
Indicating quentity and value of store
without unneccesry resorting to stock
taking.
Advantage -:

3. *Provide information
*Use full potential
*Control wastage
*Protection -:proper store accounting
project running short of materials it's
consequences is disadvantage .Over
stocking thus the risk of price
fluctuations high carrying cost

4. Settle of claim -: Proper store accounting
help in settlement of claim from
insurance companies in case of fire 🔥,
theft etc………

5. Procedure -: Classifying
Finished goods. Raw material. WIP
*Codification
* Price vocabulary
*Bincard
Stock receipt
Store Ledger

6. *Summary of receipt and issued
* Stock Tacking.
Method of valuation of materials
When raw materials is issued from
store to the production department the
question arisen at what price job or
work orders should be charged for the
price of raw material in preparing cost.

7. Statement several method of pricing the
material issued may be used the choice
depending largely on the nature of
materials condition in business

8. FIFO method -: Under this method
materials is first issued from first
consigment on hand priced at place in
the store .In simple words materials
received first issued first.
Advantage -:Easy operation -: Simple
and easy to understand and operate
*Recover cost -: materials are issued

9. At purchase price recover the cost
price.
*Logical method -: Because it take
account first which received first
*Valuation - closing stock valued at
current market price.
Disadvantage-: Complicated -: issue of
material different price complicate

10. Store keeper.
Different to comparison -: Difficult when
single material charged different price.

11. Last In First Out (LIFO)-: This method
opposite to FIFO method this is based
on assumption that latest issued of
materials are issued for production .The
price of issue of materials purchased is
used for all issues of unit all units of that
batch have been issued after which price
earlier lot will be charged it is also

12. It is also called as replacement cost
method.
Advantage -: simple method
*Avoid tax -:use method to avoid tax
Systematic record -: LIFO is
systematic method matches current
costs with current revenue in better
way.

13. Real income -: LIFO method revel real
Income.
Stability -: minimise unrealised
inventory gain and losses tend to
stabilize reported operating profit
especially when industry in prone sharp
price fluctuations.
Accurate profit or loss-: current cost

14. Related to current price.
Disadvantage-: Complicated -: when
rate of materials receipt are highly
fluctuating the method becomes
complicated .
Different price -: more the one price
adopted for issue of material.
Difficult for comparison -: cost of batch