Hi,
I have a contract with supplier for Refundable Packing Material. When i will purchase i need to pay Raw material cost Rs.100 + Returnable Bin Rs.10. Now when i will return my Bin Rs.10/Mt i will received.so,
Here, 1). How i can maintain the inventory of Bin
2) and How i will treat my Returnable Bin amount in accounts.
3). Expense for Returnable Bin items.
Dear Rajnish,
You are purchasing goods with goods with returnable bins. Here whatever is goods cost are your purchase cost and what you are paying for bin are security deposit which will refunded upon returning back bin to supplier.
Upon Receipt of Material following entry can be passed
Purchase A/c Dr. 100
Security Deposit- Returnable bin A/c Dr. 10 [classified under Current Assets]
To Supplier 110
Note: Both Purchase & Security Deposits are supported by Inventory. You can identify numbers of returnable bin by dividing security deposit by 10.
Upon return of Returnable bin
Supplier A/c Dr. 10
To Security Deposit- Returnable bin 10
In case packing bin lost by you or not able to return to supplier
Charge Security Deposit to Expenses
Misc. Expense A/c Dr. 10
To Security Deposit- Returnable bin 10
CAclubindia
