Question

A product of a company passes through three processes. From the following information prepare Process Accounts :
Material introduced into Process A 20,000 units at a cost of Rs. 8,000. Other particulars are :

	Process -A	Process - B	Process - C
Sundry Materials	Rs. 6,000	Rs. 2,000	Rs. 2,000
Direct Labour	Rs. 4,000	Rs. 3,000	Rs. 3,000
Overheads	Rs. 4,000	Rs. 2,000	Rs. 1,000
Normal Loss	2%	5%	10%
Scrap Value per 100 units	Rs. 5	Rs. 20	Rs. 10
Output (units)	19,600	18,400	16,700

Prepare Process Accounts, Abnormal Loss Account and Abnormal Gain Account.

Answer 1

Books of..............

Dr.

Process - A Account

Cr.

Particulars	Quantity (Units)	Amount (Rs.)	Particulars	Quantity (Units)	Amount (Rs.)
To Units Introduced	20,000	8,000	By Normal Loss `(20,000  "Units" xx 2/100)`	400	20
To Sundry Materials	-	6,000	By Process-B A/c	19,600	21,980
To Direct Labour	-	4,000
To Overheads	-	4,000
	20,000	22,000		20,000	22,000

Dr.

Process - B Account

Cr.

Particulars	Quantity (Units)	Amount (Rs.)	Particulars	Quantity (Units)	Amount (Rs.)
To Process-A Alc	19,600	21,980	By Normal Loss `(19,500  "Units" xx 5/100)`	980	196
To Sundry Materials	-	2,000	By Abnormal Loss Alc `((220xxRs.27,784)/(18,620  "Units"))`	220	328
To Direct Labour	-	3,000
To Overheads	-	1,000	By Proeess-C Alc	18,400	27,456
	19,600	27,980		19,600	27,980

Dr.

Process - C Account

Cr.

Particulars	Quantity (Units)	Amount (Rs.)	Particulars	Quantity (Units)	Amount (Rs.)
To Process-B Alc	18,400	27,456	By Normal Loss `(18,400  "Units" xx 10/100)`	1,840	184
To Sundry Materials	-	2,000	By Finished Stock Alc	16,700	33,553
To Direct Labour	-	3,000
To Overheads	-	1,000
To Abnormal Gain Alc`((140  "Units"xxRs. 33,272)/(16,560  "Units"))`	140	281
	18,540	33,737		18,540	33,737

Dr.

Abnormal Loss Alc

Cr.

Particulars	Quantity (Units)	Amount (Rs.)	Particulars	Quantity (Units)	Amount (Rs.)
To Process-B Alc	220	328	By Bank A/c (Sale of Scrap)	220	44
			By Costing P and L A/c	-	284
	220	328		220	328

Dr.

Abnormal Gain Alc

Cr.

Particulars	Quantity (Units)	Amount (Rs.)	Particulars	Quantity (Units)	Amount (Rs.)
To Normal Loss A/c	140	14	By Process - C A/c	140	281
To Costing P and L Alc	-	267
	140	281		140	281