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If normal loss& abnormal loss occurred at the same time then why should we take abnormal loss first & then normal loss. Explain the logic behind it
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Thread Starter
Rakesh ShahI told you that why we substract abnormal loss first on cost price and after we substract normal loss if the both loss was occured at same time
First you adjust normal loss - expected. Then balance would be abnormal.
Don't know about the order, but will tell u the logic. 1.The selling price per unit will be increased because of the normal loss. Abnormal loss should not be born by the customers so it will not affect the selling price per unit. 2.And the new selling price per unit will be used to calculate the Abnormal loss
Christeena Ambel
Don't know about the order, but will tell u the logic. 1.The selling price per unit will be increased because of the normal loss. Abnormal loss should not be born by the customers so it will not affect the selling price per unit. 2.And the new selling price per unit will be used to calculate the Abnormal loss
I told you that why we substract abnormal loss first on cost price and after we substract normal loss if the both loss was occured at same time
CA Suraj Lakhotia Admin
First you adjust normal loss - expected. Then balance would be abnormal.
It mean we cut first normal loss and after abnormal loss on good if both loss occurred at the same time?
Thread Starter
Rakesh ShahI told you that why we substract abnormal loss first on cost price and after we substract normal loss if the both loss was occured at same time
Can u please show me that question.. Actually we don't reduce abnormal loss from cost Total cost will remain same and cost per unit will increase due to normal loss Abnormal loss has no such impacts
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