22 December 2011
pls sm1 clear dis doubt for me.its very basic one but m very confused on it
as we knw dat a process account is a nominal account,n accounting principal fr nominal acount is debit all expenses n losses,credit all incomes n gains. den y we post normal,abnormal loss in credit side of process account n abnormal gain in debit side
22 December 2011
First of all, Nominal Account is a matter of financial account but it has nothing to do with cost accounts.We cannot apply fin acct principle to cost acct.We have to see whether a particular item has the effect of increasing cost or decreasing cost. Accordingly we have to treat it in cost account.
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