A KRR Ltd sells goods in containers which are charged to customers at (2.00 ) each. Customers
Question:
A KRR Ltd sells goods in containers which are charged to customers at \(£2.00
\) each. Customers are credited with \(£1.25
\) for each container returned within four months.
On 31 December 19X7, there were 1,580 containers on the company's premises and 5,520 containers, the time limit for the return of which has not expired, were held by customers.
During 19X8:
(i) KRR Ltd purchased 8,700 containers for \(£ 1\) each.
(ii) 26,460 containers were charged to customers.
(iii) 23,720 containers were returned by customers and credited to them.
On 31 December 19X8, customers held 6,000 containers, the time limit for the return of which had not expired.
For purposes of the annual accounts of KRR Ltd, all stocks of containers on the company's premises and returnable containers in the possession of customers are valued, at \(£ 1\) each.
You are required to show the container stock account and the container trading account for the year 19 X8. These accounts should be provided with additional memorandum columns in which quantities are to be shown.
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