Abnormal Loss / Normal Loss re. Scrap Value

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Quick Question regarding normal loss and abnormal loss. If a scrap value is indicated, then you enter this in to the account. My question stated that ALL losses can be sold for scrap, therefore for the abnormal loss do I calculate the scrap value or the full value? I then need to prepare accounts for Normal loss/scrap account, and Abnormal Loss. I'm lost.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Abnormal Loss / Normal Loss re. Scrap Value

    Abnormal loss is calculated at full cost the scrap value is taken into account in the abnormal loss 't' account. Loss from the abnormal loss is reported to the P&L account.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Abnormal Loss / Normal Loss re. Scrap Value

    I see, thanks. So... Abnormal Loss Acc: Dr Abnormal Loss Full Value , Cr Abnormal Loss Scrap Value.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Abnormal Loss / Normal Loss re. Scrap Value

    do we think there will be any questions on this?<BR>our tutor kept saying its possible it will be included but doesnt know for sure.<BR>fingers crossed it isnt, i suck at it

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