Plastic pallets used in storage of agri. products

dear professionals
please tell me purchase of plastic pallets used for storage of agriculture products are to be shown as consumables or plant and machinery as assets.
Thanks in advance
Replies (3)
Quick Summary
This discussion explores the correct accounting classification for plastic pallets used in agricultural product storage. While some initially suggested consumables or plant and machinery, the consensus leans towards classifying them as assets. However, they are not considered plant and machinery as they are used purely for storage, not manufacturing. The most appropriate classification appears to be 'Furniture and Fittings'.

Consumables are defined as those goods which are once consumed get exhausted, whereas Plastic Pallets on the other hand can be reused any number of times and have a good life span. So, it should be considered as assets. Correct me if i am wrong.

You are right sir.
We show this in plant and machinery is it correct ?

That would not be apt. Since plant and machinery are used for the purpose of manufacturing; and Manufacturing is defined as the process of producing some commercially viable output by giving some input (Raw Material) and processing it with the use of machinery. Since these plastic pallets are merely used only for storage Purpose, if i am not wrong you can show this under "Furniture and Fittings". That would be the most apt way to disclose this. I see no other way of doing so.

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