Empties Classification and Management
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Questions and Answers

What defines non-returnable empties?

  • They are charged separately from the contents.
  • Their cost is included in the cost of contents and are not returned. (correct)
  • They must be returned within a specified period.
  • They can be returned for a refund.

    • Which category of empties allows for a refund if returned in good condition?

  • Serviceable Empties
  • Non-returnable Empties
  • Optionally Returnable Empties (correct)
  • Returnable Empties

    • What should be done with unserviceable empties?

  • They should be returned to the supplying firms.
  • They should be kept in Group 98 under Class 'S'.
  • They should be stored in a special ledger.
  • They should be classified as scrap under appropriate headings. (correct)

    • How are non-returnable empties recorded in ledgers?

    <p>They are not recorded in separate ledgers.</p> Signup and view all the answers

    What happens if returnable empties are not returned in good condition?

    <p>The cost must be paid to the supplying firms.</p> Signup and view all the answers

    In which group should serviceable empties be held in stock?

    <p>Group 98</p> Signup and view all the answers

    What is included in the cost when materials using non-returnable empties are issued?

    <p>The cost of materials plus the cost of empties.</p> Signup and view all the answers

    What should be done if the empties are returned in poor condition?

    <p>Submit an Advice Note of Returned Stores after valuing the empties.</p> Signup and view all the answers

    What document should be prepared to credit the firm for returning empties?

    <p>A Receipt Note that quotes the original Receipt Note.</p> Signup and view all the answers

    Who is responsible for noting the payment made to the firm in the register?

    <p>The Stores Accounts Officer.</p> Signup and view all the answers

    When should adjustments for non-returned empties be made?

    <p>Within one month of the due date for returning empties.</p> Signup and view all the answers

    What is the purpose of posting Receipt and Issue Notes in the priced ledger?

    <p>To provide a record for future audits.</p> Signup and view all the answers

    What should be done with empties left in the depot due to retail or other issues?

    <p>They should be taken into stock at scrap rates.</p> Signup and view all the answers

    How should materials supplied directly to consuming departments be handled in terms of empties?

    <p>They should be returned to the stores depot following the returned stores procedure.</p> Signup and view all the answers

    What information should the Receipt Note include regarding the cost of empties?

    <p>The cost of the contents separately from the cost of the empties.</p> Signup and view all the answers

    When issuing empties along with materials, how should the issue note be recorded?

    <p>Separate entries for contents and empties should be made.</p> Signup and view all the answers

    What happens if empties are returned in good condition within the specified time?

    <p>Their cost will be credited to the indenting departments.</p> Signup and view all the answers

    Under what circumstance can empties be returned to suppliers?

    <p>If they are returned in good condition within a specified period.</p> Signup and view all the answers

    What should be done in the numerical ledger regarding the empties?

    <p>They must be accounted under a separate heading.</p> Signup and view all the answers

    What is the main responsibility of the Stores Accounts Officer regarding empties?

    <p>To account for the empties in the priced ledgers.</p> Signup and view all the answers

    What is a key requirement for firms supplying materials regarding the cost of empties?

    <p>They should refund the full cost if returned in good condition.</p> Signup and view all the answers

    What should be done with the empties upon their return?

    <p>They should be promptly returned to the firms.</p> Signup and view all the answers

    What is the purpose of the Advice of Direct Supply of Optionally Returnable empties?

    <p>To inform about the empties being returned.</p> Signup and view all the answers

    Which detail is NOT required on the Advice form?

    <p>Reason for returning goods.</p> Signup and view all the answers

    Who should receive a copy of the return advice?

    <p>The Stores Accounts Officer.</p> Signup and view all the answers

    What is the main record mentioned for monitoring the return of the empties?

    <p>S. 1714</p> Signup and view all the answers

    What information regarding the empties is crucial on the advice form?

    <p>Quantity and rate of the empties.</p> Signup and view all the answers

    What should be recorded to track the transmission of empties to the firms?

    <p>The advice postings in a manuscript register.</p> Signup and view all the answers

    Which piece of information is NOT typically included in the return of empties?

    <p>Cost of the empties to the department.</p> Signup and view all the answers

    What action is indicated regarding the term 'Optionally Returnable'?

    <p>It can be struck out if not required.</p> Signup and view all the answers

    What aspect of the empty return process does the Controller of Stores oversee?

    <p>The return dates and conditions.</p> Signup and view all the answers

    How frequently should the verification staff check the filed advices in the Stores Accounts Office?

    <p>Once in three months</p> Signup and view all the answers

    What information must be included on the Advice Notes for Returned Stores?

    <p>Full particulars of the original Receipt Note</p> Signup and view all the answers

    What is true about returnable empties according to the content?

    <p>There is an agreement to return them in good condition.</p> Signup and view all the answers

    What document should the Depot Officer maintain for tracking the receipt and return of empties?

    <p>Manuscript Register (Form S. 1716)</p> Signup and view all the answers

    What endorsement should the issue notes bear regarding the return of empties?

    <p>Debits will be raised if not returned in good condition within a specified timeframe.</p> Signup and view all the answers

    Which form should be used when empties are returned by the indenting departments?

    <p>Form S. 1718</p> Signup and view all the answers

    What happens if the empties are not returned within the specified period?

    <p>Cost of the empties is borne by the railway.</p> Signup and view all the answers

    What should be included in the manuscript register regarding the return of empties?

    <p>Particulars of receipt, issue, and subsequent return</p> Signup and view all the answers

    Which of the following is NOT a requirement for the Advice Notes for Returned Stores?

    <p>Description of the storage facility</p> Signup and view all the answers

    What should the numerical and priced ledgers reflect regarding the contents of the empties?

    <p>The ledgers should exclude the empties.</p> Signup and view all the answers

    What is the primary purpose of the 4th foil of the form prepared for returned empties?

    <p>To serve as a records copy for the Accounts Office</p> Signup and view all the answers

    What should the Depot Officer do immediately after making entries in his register regarding returned empties?

    <p>Promptly send the empties on to the firms</p> Signup and view all the answers

    How often must verification staff check the records for returned empties in the Accounts Office?

    <p>At least once every three months</p> Signup and view all the answers

    What must the Depot Officer obtain from the firms when returning empties?

    <p>Proper acknowledgment</p> Signup and view all the answers

    Which of the following actions is NOT appropriate when returning empties to the firms?

    <p>Making entries in the ledgers for returned stores</p> Signup and view all the answers

    What is the classification for empties that include their cost with the contents but do not require direct payment if returned within a specified period?

    <p>Optionally Returnable Empties</p> Signup and view all the answers

    In which accounting category should serviceable empties be recorded according to the classification provided?

    <p>Class 'S' under Group 98</p> Signup and view all the answers

    What is the proper procedure if non-returnable empties are returned by the indenting departments?

    <p>They should be credited at scrap rates.</p> Signup and view all the answers

    What should be done with unserviceable empties according to the provided classifications?

    <p>They should be categorized as scrap.</p> Signup and view all the answers

    When are credits issued for returned empties in the stores depots?

    <p>After inspection of the empties.</p> Signup and view all the answers

    What is the relationship between the costs of materials and non-returnable empties when materials are issued to departments?

    <p>The full cost of materials includes the cost of non-returnable empties.</p> Signup and view all the answers

    What happens to returnable empties that are not returned in good condition within the agreed timeframe?

    <p>The cost of the empties becomes payable to the firm.</p> Signup and view all the answers

    What action should be taken if empties are left in the depot due to issues like retail?

    <p>They should be recorded at scrap rates in the Adjustment Account.</p> Signup and view all the answers

    Which procedure should be adopted when consuming departments return direct supply empties?

    <p>The procedure for 'returned stores' should be followed.</p> Signup and view all the answers

    What specific detail must be included on the Receipt Note regarding the empties?

    <p>The cost of the contents separate from the cost of the empties.</p> Signup and view all the answers

    What should the Depot Officer do about the contents and the empties on ledgers?

    <p>Distinguish between contents and empties in different entries.</p> Signup and view all the answers

    How should the indenting departments be informed about the return of empties?

    <p>They need to be informed of the time limit for returning the empties.</p> Signup and view all the answers

    What condition is typically set for firms supplying materials regarding the empties?

    <p>They should refund the full cost if returned in good condition.</p> Signup and view all the answers

    What should be accounted for in the numerical ledger for returned empties?

    <p>The particulars of the empties under a separate head.</p> Signup and view all the answers

    What must the Stores Accounts Officer do regarding the pricing of empties?

    <p>Account for both empties and contents separately.</p> Signup and view all the answers

    What should be maintained for tracking the receipt and return of empties?

    <p>A manuscript register regarding the return of empties.</p> Signup and view all the answers

    What should be done with the information regarding the return of empties on the manuscript register?

    <p>It should be used to monitor the return process.</p> Signup and view all the answers

    Which of the following statements about the Advice form for returnable empties is correct?

    <p>It should specify the rate and quantity of each empty.</p> Signup and view all the answers

    What action should be taken if the empties are not returned to the firm within the due date?

    <p>Necessary adjustments should be recorded.</p> Signup and view all the answers

    What is the consequence of returning an empty after the stipulated time and in unserviceable condition?

    <p>It should be treated as scrap and accounted for as such.</p> Signup and view all the answers

    What type of details must be provided in the Advice of Direct Supply form?

    <p>Purchase order number and date.</p> Signup and view all the answers

    Which role is primarily responsible for maintaining a list of priced ledgers for optionally returnable empties?

    <p>Stores Accounts Officer</p> Signup and view all the answers

    Which of the following is NOT a common requirement for the Advice Note regarding returned empties?

    <p>The contact details of the firm's CEO.</p> Signup and view all the answers

    What oversight does the Controller of Stores have in relation to the empty return process?

    <p>Ensuring timely adjustments are made.</p> Signup and view all the answers

    How should serviceable empties returned after the specified time be recorded?

    <p>In a separate numerical ledger card from the original entry.</p> Signup and view all the answers

    What should the Accounts Officer do to ensure timely return of empties to firms?

    <p>Review the priced ledgers regularly.</p> Signup and view all the answers

    Which detail should be excluded from the Advice form for option returnable empties?

    <p>Estimated lifespan of the empties.</p> Signup and view all the answers

    When must adjustments for non-returned empties be made by the Depot Officer?

    <p>Immediately after discovering the non-return.</p> Signup and view all the answers

    What is the primary use of the Receipt Note in the context of returnable empties?

    <p>To track the costs associated with returned empties.</p> Signup and view all the answers

    What action indicates the transaction when empties are returned to firms by the Depot Officer?

    <p>It is treated as minus receipts.</p> Signup and view all the answers

    What role does the Stores Accounts Officer play in the process of managing empties?

    <p>Recording all adjustments made in financial ledgers.</p> Signup and view all the answers

    Which of the following is a requirement for processing the return of once issued, optionable returnable empties?

    <p>Providing endorsement on Receipt Notes requesting return.</p> Signup and view all the answers

    What should happen to the empties listed on the Advice form after they are returned?

    <p>They should be accounted for on the ledger as returned.</p> Signup and view all the answers

    What is the appropriate credit rate provided when empties are returned in good condition within the specified time?

    <p>At a predetermined rate communicated when they were issued.</p> Signup and view all the answers

    What must be included in the Advice Notes for Returned Stores regarding returnable empties?

    <p>Confirmation of the empty condition upon return.</p> Signup and view all the answers

    What should be done with empties that are unserviceable and returned?

    <p>They should be treated as scrap and accounted accordingly.</p> Signup and view all the answers

    Study Notes

    Empties Classification

    • Three categories of empties exist: non-returnable, optionally returnable, and returnable
    • Non-returnable empties' cost is included in the cost of their contents
    • Optionally returnable empties' cost is included with the contents, but are refundable if returned in good condition within a specified period.
    • Returnable empties are not charged initially, but the cost is payable if not returned in good condition within the specified time

    Serviceable Empties

    • Serviceable empties are stored in Group 98, Class 'S'
    • Unserviceable empties are categorized as scrap

    Non-Returnable Empties

    • No separate ledgers are needed for non-returnable empties
    • Cost is included in the material cost
    • When issued to departments, the full cost, including empties, is debited
    • If returned, credit is given at scrap rates, updating the appropriate ledger

    Empties Left in Depot

    • Empties left in the depot are taken into stock at scrap rates
    • Credit to stock adjustment account for these transactions

    Direct Supplies

    • Empties for direct supplies should be returned to the depot supplying the materials
    • Procedures for returned stores should be followed

    Empties Returnable to Suppliers

    • Suppliers separately charge for empties and offer refunds if returned in good condition within a specific period
    • Receipt notes should show content and empty costs separately
    • Content costs are entered on numerical ledgers; empty costs recorded in a separate ledger

    Issue to Departments

    • Issue notes should detail contents and empties
    • If empties are returned in good condition within the specified period, a credit is awarded to the department
    • A rubber stamp on issue notes specifies credit terms

    Return by Departments

    • Returned empties are treated like returned stores
    • Credit is given at the rate previously agreed upon, provided the return is within the stipulated time and in good condition
    • If returned late or are unserviceable, scrap rate credit is given (separate ledger)

    Return to Firms

    • Depot officer issues minus receipt notes for returned empties
    • Accounts officer tracks optionally returnable empties (at least monthly)

    Direct Supply

    • Departments receiving direct supplies are responsible for returning empties to the depot
    • Advice of direct supply form is used for this

    Advice Notes for Returned Stores

    • Used for tracking returned optionally returnable empties
    • Shows information about the original receipt note, firm, rate, due date, and minus receipt note

    Memo of Returned Empties

    • Used when no debit is raised by the depot
    • Used for empties that are not subject to a debit

    Issue to Departments

    • Issue notes include details of empties and contents
    • Issue notes specify debit terms if returned late or damaged

    Return of Empties by Departments

    • Follow the process for returned stores
    • Credit is awarded at previous agreed rates if returned in good condition within the stipulated time
    • Proper procedures for unserviceable empties applies

    Direct Supplies

    • Departments receiving direct supplies are required to return empties to the depot
    • Advice notes should be used for these returns

    Empties Rejected by Firms

    • If empties are rejected, they should be sent to the nearest depot, with appropriate accounting adjustments
    • If empties were optionally returnable, a different adjustment process applies

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    Related Documents

    Store Department Code Vol-2, Ch-17 PDF

    Description

    This quiz covers the classification of empties, including non-returnable, optionally returnable, and returnable types. Learn about the financial implications of each category and the management of serviceable and unserviceable empties. Understanding these concepts is crucial for proper inventory and cost management.

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