Comparison of actual physical inventory and book value

Sometimes there is a difference between the actual physical inventory and book stock of a particular item. the causes of difference are as under:

1. Change in volume due to evaporation or absorption of moisture.
2. Impossibility of breaking up or cutting bulk without loss.
3. Shortage in actual inventory due to pilferage and careless handling.
4. Careless measurement at the time of receiving.

 Records Maintained 

i) Bin Card – kept with the goods on their shelves and updated on receiving & issuing goods.

ii) Stock Record Card – same as bin card

iii) Food Storeroom Requisition – it is for requisition of goods from the store.

iv) Kitchen Transfer – it is for intra or interdepartmental transfer of goods, like from main kitchen to coffee shop kitchen, from coffee shop kitchen to bar, etc.

v) Physical Inventory Sheet – it is for noting quantity of goods during physical stock taking.