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# PPT - Treatment of Normal & Abnormal Losses B Com Notes | EduRev

## B Com : PPT - Treatment of Normal & Abnormal Losses B Com Notes | EduRev

``` 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
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## Cost Accounting

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