Terms Used In Containers Account

1. Cost Price
The purchasing price or the manufacturing cost of the containers is referred as cost price.

2. Charged Out Price
A particular amount can be charged to the customers for the container, which is known as charged out price.

3. Returnable Price
When a customer returns the returnable containers in good condition within a stipulated time, he/she will be refunded a certain amount which can be termed as returnable or refundable price.

4. Hire Charge
The difference between charged out price and returnable price is known as hire charge.
Hire Charge = Charged out price- Returnable price

5. Containers Retained (Sold)
The containers are sent to the customers with terms and conditions. If the customer fails to return the containers within the stipulated time, it will be treated as sold or retained by customers.

6. Returnable Containers
The containers lying with the customers on the closing date of the accounting period is known as returnable containers. For becoming returnable containers, the time limit of return should nor be expired on the closing date.

Related Topics
Concept Of Accounting For Container And Objectives Of Keeping Separate Accounts For Containers
Accounting Treatment Of Containers

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