stores ledger control accounts contains a separate account of
Answers
Finished Goods Ledger:
This contains accounts of all types of finished goods. A separate account is opened for each type of finished product.
Thus, cost ledger is the principal book of accounts. It contains all impersonal accounts. It is the only ledger maintained in small concerns. In large concerns where accounts are numerous, subsidiary ledgers such as Stores Ledger, Work-in-Progress Ledger, Finished Goods Ledger etc., may have to be employed. Where such subsidiary ledgers are maintained, the Cost Ledger should be made self-balancing by the use of control accounts. For this purpose, a control account should be opened in the cost ledger for each of the other subsidiary ledgers.
Advantages of Cost Ledger:
Following are the advantages of maintaining a cost ledger:
ADVERTISEMENTS:
(i) It helps the management in policy decisions as this ledger summarises all detailed information regarding cost in subsidiary records.
(ii) It provides the basis for analysis of cost and preparation of accounts for each cost centre for cost ascertainment and control.
(iii) It provides a proper control over materials and supplies, labour and overheads.