Page 88 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes prepared by the production department or other departments. The material transfer note
shows description, code, quantity, rate and amount of materials returned. Copies of this note
shall be sent to the cost office, stores department and transferee department for appropriate
adjustments in the amounts of both the transferor and transferee departments.
A format of this note is presented herein as Material Transfer Note:
Kartik Company Limited
Material Transfer Note
No. : ……………………… Transferor Department : …………………...
Date : ……………………… Transferee Department : …………………...
Description of Materials Code No. Quantity Rate Amount (`) Remarks (If any)

prepared by : …………………….
Received by : ……………………. Authorized Signatory : …………………….
(v) Stores Ledger Account: This is an important running record of movement of materials
such as receipts, issues, balance, etc. The stores ledger is a record which is maintained
by the costing department or accounts department. For each item of material, a separate
ledger is maintained. It is usually a loose-leaf or card type. The most important feature of
stores ledger is that it records not only the physical movement of materials but also their
monetary value.
A specimen of stores ledger account is presented below.

Kartik Company Limited
Stores Ledger Account
Folio No. : ……………………. Reorder Level : …………………...
Material Code : ……………………. Minimum Level : …………………...
Description : ……………………. Maximum Level : …………………...
Specification : …………………….
Date Receipts Issues Balance
GRN Quantity Rate Amount MRN Quantity Rate Amount Quantity Rate Amount
(`) (`) (`)

Task Select a manufacturing concern and outline a system of materials control for it. Give
specimen of various forms you will require.

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