Question: A company makes a charge to its customers for cases in which its product is delivered; if they are returned in good condition within three months a refund is made. During the year 1962, 50,800 cases were sent to customers and 46,400 returned by them; the company scrapped 4,200 damaged cases and sold the proceeds for £20. A physical check of cases in stock at 31st December, 1962, revealed an unaccounted deficit of 640 cases. At the commencement of the year there were 10,500 cases in stock at the company's warehouse and 4,900 in the hands of customers supplied within the previous three months; the company purchased 15,000 new cases during the year and, following a dispute with a supplier, returned 3,000 new cases for which a credit note for £2,840 was received. At 31st December, 1962, there were still in the hands of customers 3,200 cases supplied within the previous three months. New cases cost 20/- each; they are charged out to customers at 24/- each and credited on return at 18/- each. They are valued for stocktaking at 15/-each. Show the accounts in the books of the company for the year 1962 to record the above transactions, and the balances of cases, in quantities and value, at 31st December, 1962. Give a statement reconciling the profit or loss on the cases "service" for the year.