258. The accounts are of two kinds—

(a) Quantities accounts, and (b) value accounts.

(a) All quantities received in or issued from stores should be entered in the stock account under the respective heads on the dates the transactions take place, and balances struck every month which should correspond to the quantities in stock at the close of each month.

(b) The value account should show the money value of the materials received in and issued from stock. The value of all the materials obtained from different sources, either by cash payment or by book adjustment should therefore, be entered on the payment side. The receipt side should show the value of materials issued from time to time at rates which should be previously fixed by competent authorities after taking into account in addition to the original price, the cost of carriage and losses from depreciation or wastage, cost of stores godown and other similar charges, but should in no case exceed the market value. A general valuation should also be made of the stock in hand at the close of each half-year at reasonably accurate price which should be reviewed from time to time and revised when necessary and then entered on the receipt side. The difference between the totals of the two columns will ordinarily show profit or loss in the operation of different classes of materials. This will enable the authorities to re-adjust the issue prices, where necessary.

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