Class 10 Account (Office Management and Accounting)

Chapter 12: Store Accounting (Store Ledger)

Complete guide for SEE board exam preparation: Very Short, Short, and Long answer questions with full solutions

Welcome to the complete guide on Store Accounting (Store Ledger). This chapter is highly essential for Class 10 Account (Office Management and Accounting) students preparing for their SEE board exams.

For official curriculum details regarding Store Accounting, you can visit the CDC Nepal Official Website.

Looking for more study materials? Explore our full collection of Class 10 Account Notes.

Secondary Education Examination (S.E.E.) Questions Pattern

Types of Question	Number of Questions	Marks
Very Short Answer Question	2 (Chapter 12 or 13) 1 Numerical (Chapter 13)	1
Short Answer Question	1 (Chapter 12 or 13)	5
Long Answer Question	X	X
Total	4	8 Marks

1. CDC Exercise Solutions
Very Short Answer Questions [1 Mark]

(a) What is meant by “Store” (Jinsi)?

Answer: All physical goods, equipment, tools, and assets — both consumable (used up over time) and non-consumable (long-lasting) — that are required to carry out the daily administrative operations or long-term functions of a government or non-government office are collectively referred to as “Store” (Inventory/Jinsi).

(b) Write any two examples of office stores (Jinsi).

Answer: Two examples of office stores are: 1. Computers and printers (non-consumable/durable store items) and 2. Photocopy paper and ink (consumable/non-durable store items).

Answer: A store ledger is prepared to identify the true and current condition of goods purchased by the office, to prevent theft, misappropriation, or misuse of those goods, and to ensure their maximum and proper utilization.

(d) Mention any two importances of the store ledger system.

Answer: Two importances of the store ledger system are: 1. It maintains a systematic and transparent record of the receipt, storage, and distribution of goods; and 2. It provides accurate details of how much stock remains, thereby preventing unnecessary re-purchasing and helping to save budget.

(e) Why is a Requisition Form filled, and who fills it?

Answer: When any branch or employee of the office needs a particular item to carry out their daily work, a Requisition Form is filled by the concerned branch employee or storekeeper in order to officially request and obtain that item from the Store Section.

(f) Write the uses of a Requisition Form.

Answer: A Requisition Form is used as an official document to authorize the issue of goods available in the store. Additionally, if the required item is not available in the store, it is used as evidence to initiate the process of purchasing new stock.

(g) Write the function of a Purchase Order.

Answer: The main function of a Purchase Order is to give a written and official instruction to a supplier or vendor, specifying the exact quantity, quality, price, and delivery date of the goods required by the office, so that the supplier can deliver the items accordingly.

(h) When is a Submission Report (Dakhila Pratibedan) prepared?

Answer: A Submission Report is prepared as soon as the goods delivered by the supplier — as per the Purchase Order — are received in the store, and after verifying and confirming that the quantity and quality of those goods are correct. It is then used to officially record the goods as income (entry) in the store.

(i) What types of items are recorded in the Consumable (Non-Durable) Store Account?

Answer: Items that are quickly used up, destroyed, or do not have a significantly long lifespan when used in the daily operations of the office — such as paper, pens, ink, ballpoint pens, brooms, etc. — are recorded in this account.

2. Short Answer Questions [5 Marks]

(a) What is Store Management? Mention four stages of the store management process. 5 Marks

The overall managerial process of procuring the physical goods required for an office to achieve its goals at the right time, at the right price and quality; storing them safely; distributing them as per demand; and auctioning off or writing off goods that are no longer useful — is known as Store Management (Inventory Management).

The four main stages of the Store Management process are as follows:

1. Planning and Purchasing: Collecting demand from various sections to determine what and how much the office needs, and then initiating the purchasing process (through tender or quotation) within the approved budget.
2. Receipt and Storage: Receiving the purchased goods, preparing a Submission Report (Dakhila Pratibedan), and storing them securely in the store room to prevent damage or theft.
3. Issue / Distribution: Upon receiving Requisition Forms from various branches, distributing the required goods with the approval of the authorized officer.
4. Use, Maintenance and Disposal: Ensuring proper use and maintenance of the goods. Identifying items that are broken, damaged, or have reached the end of their useful life, and then auctioning or disposing of them according to the applicable rules and regulations.

(b) Mention the importance of the store ledger system. 5 Marks

The store ledger (Store Accounting) plays a vital role in protecting the physical assets of an organization. Its key importances are outlined below:

Transparency and Control: It provides clear information on where, by whom, and how much of the purchased goods are being used in the office, thereby controlling random use and misuse of items.
Assistance in Purchase Planning: Since it provides accurate details of how much stock of each item remains in the store, it prevents unnecessary re-purchasing of available goods and helps ensure required items are purchased on time.
Maintaining Financial Discipline: It helps keep store purchases within the budget limits and makes the accounting of store items transparent, thereby facilitating audit work.
Basis for Auction and Write-off: It provides data on goods that are unusable, old, or damaged, enabling the office to auction them off in a timely manner and thus preventing additional financial burden.
Responsibility and Accountability: Since there is a clear record of which asset or store item is under the charge of which employee, it simplifies the process of handing over responsibilities when an employee is transferred or retires (handover process).

(c) Classify the following items as Consumable (Non-Durable) or Non-Consumable (Durable).
(Calculator, Photocopy Machine, Paper, Pen, Furniture, Car, Computer) 5 Marks

The given items can be classified according to their nature as follows:

Consumable / Non-Durable Goods (Used up over time)	Non-Consumable / Durable Goods (Long-lasting)
1. Paper	1. Calculator
2. Pen	2. Photocopy Machine
	3. Furniture
	4. Car
	5. Computer

(d) Show the differences between Consumable (Non-Durable) and Non-Consumable (Durable) goods. 5 Marks

The main differences between Consumable (Non-Durable) and Non-Consumable (Durable) store goods are as follows:

Basis	Consumable / Non-Durable Goods	Non-Consumable / Durable Goods
Meaning	These are goods that are consumed or used up during daily office operations.	These are goods that can be continuously used in the office for a long period after a single purchase.
Lifespan	These goods have a short lifespan (generally less than one year).	These goods have a long lifespan (more than one year).
Value / Cost	The unit cost of such goods is generally low.	The cost of such goods is comparatively high.
Record	Their record is maintained in the Consumable Store Ledger (Government Accounting Form No. 407).	Their record is maintained in the Non-Consumable Store Ledger (Government Accounting Form No. 408).
Return / Auction	Once used, they are generally not returned to the store or auctioned (except for any unused leftovers).	When they become unusable or too old, they are returned to the store and then auctioned or written off as per the rules.
Examples	Photocopy paper, ink, pens, cleaning liquids (Phenyl), etc.	Computers, furniture, vehicles, machinery, etc.

3. Long Answer Questions [8 Marks]

(a) Discuss the forms used in store management. Write the uses of the store ledger. 8 Marks

Part 1: Main Forms Used in Store Management
According to the accounting system of the Government of Nepal, various Government Accounting (G.A.) forms are used to make store management in an office transparent and systematic. The main forms among them are as follows:

1. Requisition Form (G.A. Form No. 401): When any branch or employee of the office needs goods during the course of work, this form is filled out to officially request those goods from the Store Section. This form provides official authorization for the demand of goods.
2. Purchase Order (G.A. Form No. 402): When goods are not available in the store, a Purchase Order is the official written instruction given to a supplier, specifying the description, quality, and price of the required items to be delivered.
3. Submission Report / Goods Received Note (G.A. Form No. 403): This report is prepared to verify (check the count and quality of) the goods received as per the Purchase Order, and to officially record those goods as income (entry) into the store as office property.
4. Consumable Store Ledger (G.A. Form No. 407): This is a ledger account used to maintain a record of the receipt and issue of consumable items such as stationery, ink, and other daily-use supplies that are quickly used up.
5. Non-Consumable Store Ledger (G.A. Form No. 408): This is a ledger account used to maintain a permanent record, including the purchase price, of long-lasting capital assets such as machinery, furniture, and vehicles that remain in the office for a long period.

Part 2: Uses of the Store Ledger (Utility of Store Accounting)
The store ledger serves multiple important purposes in maintaining the financial and physical good governance of an office. These can be explained through the following points:

Identifying the True Condition of Assets: It helps in determining the book value of all the property and physical resources available with the office at any given time, providing a clear picture of the total asset worth.
Facilitating Physical Verification: At the end of each fiscal year, the store ledger is used to compare (physically verify) the quantity of goods recorded in the ledger against the quantity actually present in the store room.
Handover and Transfer of Responsibilities: When any employee is transferred, promoted, or retired, the store ledger is indispensable for clearly and accurately handing over (performing the handover formality of) the government property and store items under that employee’s charge to the next employee.
Monitoring Damage and Misappropriation: The store ledger serves as the primary evidence for calculating the exact loss of goods due to misuse, theft, or fire, and for bringing the responsible person to account.
Developing an Economical Purchasing System: It is a powerful tool for making the best use of the available budget — purchasing goods only when needed and preventing any disruption to the daily operations of the office.

4. Additional Important Questions (Extra Practice Questions)

(a) List the various forms used in store accounting. 1 Mark

Answer: To keep the store ledger and store management efficient and effective, mainly the following five forms are used:
1. Requisition Form (G.A. Form No. 401)
2. Purchase Order (G.A. Form No. 402)
3. Submission Report / Goods Received Note (G.A. Form No. 403)
4. Consumable Store Ledger (G.A. Form No. 407)
5. Non-Consumable Store Ledger (G.A. Form No. 408)

(b) What is a Requisition Form? 1 Mark

Answer: The form or schedule used by an employee or a section of an office to officially request goods or store items from the Store Section during the course of office operations, and to maintain an official record of such requests, is called a Requisition Form. It provides legal authorization for the issue of goods from the store.

Answer: The official written instruction given to a supplier for purchasing the goods required by the office — clearly mentioning the type, quantity, and price of the items — is called a Purchase Order. It makes the purchasing process formal and legally valid.

(d) Write about the Submission Report (Goods Received Note). 1 Mark

Answer: After verifying whether the goods received from the supplier are in the correct quantity and quality as specified in the Purchase Order, the official document prepared to record those goods as income (entry) into the store is called the Submission Report (Goods Received Note).

(e) Explain the Consumable Store Ledger and the Non-Consumable Store Ledger. 1 Mark

Answer:
• Consumable Store Ledger (G.A. Form No. 407): This is an account used to record the receipt and issue of goods that are quickly consumed or perished during daily office use — such as stationery, ink, cleaning agents (Phenyl), etc.
• Non-Consumable Store Ledger (G.A. Form No. 408): This is a permanent record-keeping account that maintains details including the purchase price and date of capital-nature goods that last for a long time and can be used repeatedly in the office — such as furniture, machinery, and vehicles.