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What Is The Accounting Treatment For Normal Loss? |
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Answer» The cost of normal loss is considered as PART of the cost of production in which it occurs. If normal loss UNITS have any realisable SCRAP VALUE, the process account is credited by that AMOUNT. If there is no abnormal gain, then there is no necessity to maintain a separate account for normal loss. The cost of normal loss is considered as part of the cost of production in which it occurs. If normal loss units have any realisable scrap value, the process account is credited by that amount. If there is no abnormal gain, then there is no necessity to maintain a separate account for normal loss. |
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