Question

When actual loss in a process is less than the anticipated loss, the difference between the two is considered as______.

Answer 1

When actual loss in a process is less than the anticipated loss, the difference between the two is considered as

normal and abnormal loss

Answer 2

Answer:

Abnormal Gain

Explanation:

Abnormal gain is occured when the anticipated loss is greater than the actual loss. In other words, we can say that it is the difference between the expected production and the actual production.

The journal entry for this process is as follows:

(i) Process A/c    Dr.

To Abnormal gain A/c

(ii)  Abnormal gain A/c   Dr.

To Normal Loss

To Costing Profit & Loss A/c