PPT - Treatment of Normal & Abnormal Losses | Cost Accounting - B Com PDF Download

 Page 2


Loss which is controllable and avoidable and which is
in excess of normal limits is called abnormal loss. It is
caused by unexpected or abnormal condition such as
machine break down, carelessness ,accidents, substandard
material etc.
Abnormal wastage  =  Actual Wastage- Normal Wastage 
Page 3


Loss which is controllable and avoidable and which is
in excess of normal limits is called abnormal loss. It is
caused by unexpected or abnormal condition such as
machine break down, carelessness ,accidents, substandard
material etc.
Abnormal wastage  =  Actual Wastage- Normal Wastage 
In process A ,100 units of raw materials were
introduced at a cost of Rs.1000.the other expenditure
incurred by the process was Rs.600.Of the units
introduced ,10% are normally lost in the course of
manufacture and they possess a scrap value of Rs. 7
each. The output of process A was only 75 units.
Prepare process account and abnormal loss account
Page 4


Loss which is controllable and avoidable and which is
in excess of normal limits is called abnormal loss. It is
caused by unexpected or abnormal condition such as
machine break down, carelessness ,accidents, substandard
material etc.
Abnormal wastage  =  Actual Wastage- Normal Wastage 
In process A ,100 units of raw materials were
introduced at a cost of Rs.1000.the other expenditure
incurred by the process was Rs.600.Of the units
introduced ,10% are normally lost in the course of
manufacture and they possess a scrap value of Rs. 7
each. The output of process A was only 75 units.
Prepare process account and abnormal loss account
pariculars units Rs pariculars Units Rs
To, raw              
material
To other 
expenses 
100 1000
600
By normal
loss
By abnormal 
loss 
By process 
B
(Out put 
transfer)
10
15
75
70
255
1275
100 1600 100 1600
Page 5


Loss which is controllable and avoidable and which is
in excess of normal limits is called abnormal loss. It is
caused by unexpected or abnormal condition such as
machine break down, carelessness ,accidents, substandard
material etc.
Abnormal wastage  =  Actual Wastage- Normal Wastage 
In process A ,100 units of raw materials were
introduced at a cost of Rs.1000.the other expenditure
incurred by the process was Rs.600.Of the units
introduced ,10% are normally lost in the course of
manufacture and they possess a scrap value of Rs. 7
each. The output of process A was only 75 units.
Prepare process account and abnormal loss account
pariculars units Rs pariculars Units Rs
To, raw              
material
To other 
expenses 
100 1000
600
By normal
loss
By abnormal 
loss 
By process 
B
(Out put 
transfer)
10
15
75
70
255
1275
100 1600 100 1600
particulars units Rs particulars units Rs
To Process 
A a/c
15 255 By cash 
a/c(15*7)
By Costing 
P/L a/c
15
-
105
150
15 255 15 255