When the empties or containers in which goods necessarily have to be supplied are costly, the manufacturer normally agrees to purchase them back at a reduced price as compared to the one charged for them. This is normal business procedure.

If you want to verify this account, you have to check that:

• Separate account of issue and receipt of empties has been prepared.
• In separate maintained a/c check how many empties lies in warehouse and how many are with customers.
• Check how many empties customers may return after the close of the year.
• Check whether proper provision has been made against the contingency of the containers being returned by customers and that for the wear and tear.
• Check the amount of sale with entry in cash book.
• See the sold empties are reduced from the inventory.
• If the empties are sold on credit, ask for direct confirmation from purchasing party and confirm the sale.