You have to verify your sale proceeds as follows.

(i) Review the internal control on junk materials, as regards its generation, storage and disposal and see whether it was properly followed at every stage.

(ii) Determine whether the organisation is maintaining reasonable records for the sale and disposal of junk materials.

(iii) Check the production and cost records for the determination of the extent of junk materials that may arise in a given period.

(iv) Compare the income from the sale of junk materials with the corresponding figures of the preceding three years.

(v) Check the rates at which different types of junk materials have been sold and compare the same with the rates that prevailed in the preceding year.

(vi) Ensure that all junk materials sold have been billed and check the calculations on the invoices.

(vii) Ensure that there exists a proper procedure to identify the junk material and good quality material is not mixed up with it.

(viii) Make an overall assessment of the value of the realization from the sale of junk materials as to its reasonableness.