ECONOMICS

Detailed explanation-1: -Loss over and above the normal loss is considered as abnormal loss.

Detailed explanation-2: -When actual loss is than the estimated loss, the difference between the two is considered to be abnormal gain.

Detailed explanation-3: -Normal loss is an unalienable loss, that occurs during the production process. These losses are immediately recorded in the books of accounts and apportioned over the remaining product units. On the other hand, any loss arising accidentally due to unforeseen events is termed as an abnormal loss.

Detailed explanation-4: -Abnormal loss is referred to as the loss that is faced by a company which is beyond the normal loss threshold. In other words, it is a loss that is experienced by a company and is beyond the normal loss that is expected to happen.

Detailed explanation-5: -If actual output exceeds expected output an abnormal gain occurs. and abnormal loss or gain) – ie cost per unit for a period is total cost divided by expected output. reconcile the process account. Abnormal loss (a cost) is credited to the process account: abnormal gain (a benefit) is debited to the process account.