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Glass container in beverage company

31 March 2023

what is the accounting treatment for glass bottle in Beverage co which the dealer/retailer have to return the company? does it is considered as PPE ?

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5 Replies

sabyasachi mukherjee (27650 Points)
Replied 02 April 2023

No it's deposit is collected by some company, but not as ppe.
The moment glass bottle is returned deposit is being adjusted.

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Yasaswi Gomes new (Finance ) (4545 Points)
Replied 02 April 2023

Its all inventory type and cant be accounted for ppe.because it is packaging expense when we buy bottle. Usually ppe is a fixed asset. Now if you look at the example of a plane, it can be leased butvit is shown as PPE.

sabyasachi mukherjee (27650 Points)
Replied 04 April 2023

It's not seperately accounted.

Atharv Sankliya (1356 Points)
Replied 05 April 2023

But before 2015 the beverage company uses this glass bottle by refilling them so isn't it ppe? sir

Yasaswi Gomes new (Finance ) (4545 Points)
Replied 05 April 2023

It is recycled quickly. Short lived probably. Thats why its used as packaging costs. Like Sabyasachi said, there are no principles and nothing can be done abput it.