Total Cost is debited to the Process a/c. Value of normal loss is deducted from the total cost to obtain the normal cost.
Deducting from the debit side item is the same as Crediting the Item.
Therefore, "Normal Loss" both in terms of units and value is recorded by
Cr. "Process " a/c and
Dr. "Normal Loss a/c"
The units are also shown along with it in the relevant column.
Journal Entry
Dr. Cr.
Rs. Rs.
Normal Loss a/c 100
Process I a/c 100
( Normal Loss value)
Dr Process I a/c Cr
Particulars Quantity Amount Particulars Quantity Amount
(in Units) (in Rs) (in Units) (in Rs)
To Input 900 1,00,000 By Normal Loss a/c 100 100
By Process II a/c 800 99,900
Total 900 1,00,000 900 1,00,000
Dr Normal Loss a/c Cr
Particulars Quantity Amount Particulars Quantity Amount
(in Units) (in Rs) (in Units) (in Rs)
To Process I a/c 100 100
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