Q.What is a Bin Card? State its necessity.

The Bin Card is the storekeeper's own quantity record, kept right next to the material it tracks.

A Bin Card is a quantitative record maintained by the storekeeper, kept along with the material in the bin/rack, showing only the quantity of receipts, issues and the running balance of that item — no values are recorded. It is necessary because it gives an up-to-date quantity balance without a physical count, helps the storekeeper spot when the Re-order Level is reached, and fixes quantity responsibility on the storekeeper.

A Bin Card is a quantitative record maintained by the storekeeper, kept physically along with the actual material — at the bin, rack, or shelf where that item is stored — showing only the quantity of receipts, issues, and the running balance of that particular item of material. No rupee values are recorded on a Bin Card at all; it is purely a quantity document, written up the moment material physically moves in or out of the bin. Since each bin holds one specific item, a factory storing many different materials keeps a separate Bin Card for each one.

Necessity of a Bin Card:

1. It gives an up-to-date, at-a-glance QUANTITY balance of each item at any time, without the storekeeper needing to physically count stock.
2. It helps the storekeeper notice the moment stock has fallen to the Re-order Level, so that a fresh purchase requisition can be raised in good time, before stock runs out.
3. It provides a running balance that can be physically verified against the actual quantity in the bin at any time — a perpetual-inventory-style check that helps detect pilferage, spoilage, or clerical mistakes early.
4. It fixes clear responsibility on the storekeeper for the accuracy of the quantity of material under their charge.
5. It supplies the quantity information the Accounts/Costing Department needs, alongside purchase invoices, to write up the value-based Stores Ledger.

Students often say a Bin Card records quantity and value — it does NOT; only the Stores Ledger records value. Also, remember the Bin Card is kept BY the storekeeper WITH the material (at the bin), not in the accounts office.