A The G Company supplies gas in expensive containers which are returnable after use. These containers cost \(£ 20\) each and are charged out to customers on sale or return within six months at \(£ 26\) each. Provided they are returned within the six months period they are credited at \(£ 23\) each. As each container is returned it is inspected and overhauled at a cost of \(£ 2\).

At the end of the year the company values all returnable containers in customers' hands and containers held in stock at \(£ 16\) each.

From the information given above prepare:

(a) returnable containers suspense account;

(b) an account showing the profit or loss on dealings in containers.

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You are advised that: Containers held by the company Returnable containers held by customers At the Beginning of the Year 2,760 4,790 At the End of the Year 3,144 2,910 During the year 3,100 new containers were purchased, 20,620 were invoiced to customers and 17,960 were returned. On inspection 260 required additional repairs costing 325 and 56 had to be sold as scrap for 60.