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Process costing

Costing

We transfer abnormal gain to costing p&l account in the actual amount of abnormal gain . Is abnormal loss also treated to be the same ? That in this sum , 75 units of abnormal loss transfered in P&L in the same manner , of which abnormal gain transfer ?

Srini Sriram

CA Final

★ 3K+

17-Aug-20 14:40

365

Answers (4)

Can you please be clear with your question?

Madhuri Veluri

CA Inter

★ 2K+

19-Aug-20 11:52

We transfer abnormal gain to costing P&L a/c by deducting scrap value for such gains . Is similarly , we do this for abnormal loss ? Like , on transfering to costing P &L account , did we deduct scrap value for such loss ??

Thread Starter

Srini Sriram

CA Final

★ 3K+

19-Aug-20 11:55

Process account is to be credited by abnormal loss account with cost of material, labour and overhead equivalent to good units and the loss due to abnormal goods (abnormal loss amount - scrap value) is debited to Costing Profit and Loss Account. So, we do deduct scrap value in case of Abnormal loss.

Madhuri Veluri

CA Inter

★ 2K+

20-Aug-20 21:19

Thank you ma'am

Thread Starter

Srini Sriram

CA Final

★ 3K+

20-Aug-20 22:17