What is two Bin System | Meaning of Bin Card and Specimen

two Bin System
two Bin System

Meaning of Two Bin System

Under this system a certain quantity of material termed as reserve stock is set apart which is not used for daily use. Under this system two bins are used. The first bin is termed as ‘running bin’s which serves the purpose of day-to-day issues.

The second bin which is turned as reserve bin’ is set aside with the certain quantity of materials. The reserve stock is set apart by taking into account the time taken by the supplier to deliver the materials.

Also Read – Meaning of Cost Accounting | Nature and Scope of Cost Accounting

When the materials in the running bin exhaust, the materials of reserve bin is used for issuing them. Two Bin System serves as a caution for the store keeper to make immediate arrangement to prepare and place a purchase reduction for procuring the required material.

However, the reserve bin should be kept rotated i.e. old materials must be issued and reserve should be created out of fresh stock.

Meaning of Bin Card

A bin is a container in which material is kept Separate bin card are maintained by the storekeeper each item of material in store. The bin cards show the details of receipts and issue of materials and balance in stock at any time.

The record is of immense help to the store-keeper in controlling the stock position. A bin card is attached to the bin, drawer or any other container in which material is stored.

Also Read – Advantages and Disadvantages of Cost Accounting|

An entry is made at the time of each receipt or issue and the new balance in stock is calculated. All these eateries of and issue are supported by documents, such as goods received note, materials return note, store requisition note etc.

A bin card is quantitative record of receipts, issue of closing balance of materials items in store. It does not contain information about the prices of materials.

Also Read – What is Installation of a Costing System | Conditions and Factors

Specimen of Bin Card

Specimen of Bin Card
Specimen of Bin Card

Related Links 


Disclaimerwww.efullform.in does not own this book, PDF Materials Images, neither created nor scanned. We just provide the Images and PDF links already available on the internet. If any way it violates the law or has any issues then kindly mail us:

About the author


Leave a Comment