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Process 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 ?

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Srini Sriram

Srini Sriram

CA Inter

3K+

17-Aug-20 14:40

44

Answers (4)

Can you please be clear with your question?


Madhuri Veluri

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

Srini Sriram

CA Inter

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

Madhuri Veluri

CA Inter

2K+

20-Aug-20 21:19

Thank you ma'am


Thread Starter

Srini Sriram

Srini Sriram

CA Inter

3K+

20-Aug-20 22:17

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