Empties

When the empties or containers in which goods necessarily have to be supplied are costly, the manufacturers normally agree to purchase them back at a reduced price as compared to the one charged for them. In such a case, it is necessary to keep a separate account of the empties “issued and received” and the number of them held by the customers, which they may return after the close of the year. The auditor should see that this has been done and also that a provision has been made against the contingency of the containers being returned by customers and that for the wear and tear which they would suffer in the process.