how to recors a layby

Paul Lussier pll@mclinux.com
Fri, 21 Dec 2001 09:52:44 -0500


In a message dated: 20 Dec 2001 15:19:07 EST
Roland Roberts said:

>>>>>> "Paul" == Paul Lussier <pll@mclinux.com> writes:
>
>    Paul> Exactly.  (though one could argue that keeping track of bottle 
>    Paul> deposits is a bit ridiculous too :)
>
>I'm glad you said it :-)

I know it's pretty ridiculous, my wife makes fun of me all the time.  
I keep track of sales tax too.  It's a bad habit I got into years 
ago, and now can't quit.  My original reasoning was that in order to 
know where your money goes, you have to keep track of where it goes.
I think I carried it a little too far though :)  But, I can't stop 
now, that would throw everything off in my year-to-year comparissons !

>But if you are going to go to the trouble of tracking bottle deposits,
>it would make sense to me to do it as an asset.  I consider refunds
>and rebates to be reimbursments which I credit back against the
>expense account, and bottle deposits don't seem quite the same.

What's the difference?  IANAA, so the way I look at it, I spend $1.45 
per quart of milk.  Of that, $.95 is for milk and $.50 is for the 
bottle.  when I return the bottle, I get $.50 back from the Bottle 
expense account.  Though, I suppose now that I think about it, I can 
see what you're saying.  Technically it could be an asset, since I 
could essentially "invest" in these bottles, then return a whole 
bunch of them and get money back.  At any time I can then look at my 
assets and see that I have $5.00 tied up in dirty milk bottles :)

Hmmm, here's a bizarre question.  What if I started collecting 
returnable cans/bottles?  Here in the U.S. some states have a "bottle bill"
where for every container sold of beer or soda (in some states even water),
there's a $.05 or $.10 surcharge on that container which you can get 
back when you return the container to a redemption center.

If I go out and start collecting returnable cans and bottles for the 
monetary value, then trade them in to collect the money they 
represent, how does that work from an accounting perspective?

Do I now need an "Cans and Bottles" income account separate from my 
"Bottle Deposits" Asset account?  How do represent that income?

I know this is probably a ridiculous scenario, but it's also 
representative of the whole "found money" concept in general, isn't 
it?  You know, when "find a $10 bill" on the side walk, or something 
similar.

>Then again, I don't keep track of them at all....

Probably a wise decision.  It's a slippery slope, and once you slide 
down it, it's very tough to  climb back up to where normal people 
live :)

-- 

Seeya,
Paul
----

			  God Bless America!

	...we don't need to be perfect to be the best around,
		and we never stop trying to be better. 
		       Tom Clancy, The Bear and The Dragon