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Sir, could you explain why do you credit output and abnormal loss and debit abnormal gain? Also why the entry of abnormal gain/loss is opposite in a loss account from that in a process account? thank you!
Have you watched my free lectures on this, because I do go through the accounting entries?
Also, appreciate that although you are expected to know what the entries are, you cannot be expected to write up an account in the exam, and the entries themselves are rarely examined.
Thank you sir, I’ve watched the free lectures and I remember you mentioned we should credit abnormal loss and debit abnormal gain. Does it mean I could just memorize which entry to be credited and which debited at this phase?
Yes, but see the logic rather than learn like a parrot 🙂
In the process account we debit with what goes into the process and credit with what leaves the process.
Abnormal losses are meaning less in the process, so credit the account.
Abnormal gains are effectively meaning there is more in the process, so debit the account.Got it! Is it because in a loss account we debit whatever increase the loss and credit what decrease the loss that we switch the entries?
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