help me!!!!
This query is : Resolved
15 May 2011
i have a water bottling business.
i supply 5 gallon water bottles to my customers. basically the bottles are my property. i am only selling the water.
the cost of one bottle is around 17 rs. and I am assuming that one bottle can be refilled only upto 30 times. so for costing purposes I have taken the bottle cost to be 17/30 = rs 0.57.
actually i want to treat these bottles as a current asset and want to amortise its cost .
plz tell me the treatment to be done in P/L a/c & balance sheet.
i supply 5 gallon water bottles to my customers. basically the bottles are my property. i am only selling the water.
the cost of one bottle is around 17 rs. and I am assuming that one bottle can be refilled only upto 30 times. so for costing purposes I have taken the bottle cost to be 17/30 = rs 0.57.
actually i want to treat these bottles as a current asset and want to amortise its cost .
plz tell me the treatment to be done in P/L a/c & balance sheet.
16 May 2011
Treat water Bottle as a Stock in Trade. and Every year value the Stock which will reduce the Closing stock every year in respect of individual stock automatically it will reduce the profit.
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