Question

Which item is not recorded in Process Accounts ?
​

Answer 1

Answer:

Donation is not recorded in Process Account

Answer 2

sale of items(stock) doesn't show up in the process a/c.

Explanation:

process a/c is prepared when a raw material needs to go through different processes to become a final product, there should be a different process a/c for each output and for each process.

so all the expenses and income generated while performing a process on a material and its completion will be recorded in this process a/c and to ascertain what work has been done and how much cost has been incurred till the end of the process.

process a/c doesn't record the sale of stock or final product as the all process cost get transferred to costing p&l a/c and there the sale, profit and loss on sale of stock get recorded.