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close this bookBasic Accounting for Credit and Savings Schemes (Oxfam, 1996, 96 p.)
close this folderChapter 9: Stock
View the document(introduction...)
View the documentSecurity
View the documentRecord keeping
View the documentStock cards
View the documentStock received
View the documentStock issued
View the documentItems issued on credit
View the documentChecking the stock
View the documentThe value of the stock

Stock received

Whenever items arrive in the store the storekeeper should record the following details on the appropriate stock card (see figure 51):

· the date the goods were received into the store;
· the name of the person supplying the goods;
· the price paid (in the 'cost movement' column);
· the quantity received (in the 'quantity movement' column);

The storekeeper should update the 'balance' columns by:

· adding the price paid for this delivery to the amount in the 'cost balance' column;
· adding the number of units received to the 'quantity balance'.

The price paid for transporting goods to the store is part of the cost of those goods and should be entered on the stock card in the 'cost movement' column.

At any time the storekeeper can calculate the average cost of the units in stock by taking the total cost (from the 'cost balance' column) and dividing by the balance in the quantity column. The average cost is used to calculate the cost of stock issued.

Average cost of = Cumulative cost . Quantity units of stock (from stock card) (from stock card)

For example, in figure 51, the average cost of ploughs in stock at 26 November is 10,215 . 100 = 102.15.

Stock Card: ploughs

Date

Details Issued to/ received from

Movement

Cost Balance

Quantity Movement

Balance

2.11

Purchase

8,000

8,000

80

80

3.11

Transport

80

8,080

80

4.11

Return 2 ploughs

(200)1

7,880

(2)1

78

25.11

Purchase

2,310

10,190

22

100

26.11

Transport

25

10,215

100

Note:
1 Issues from the store are shown in brackets. For example, on 4 November two

Figure 51: Stock card, showing purchase of stock