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Answer Posted / yoegsh
PERSONAL A/C: 1.DEBIT THE RECEIVER OF BENIFITS
2.CREDIT THE GIVER OF BENIFITS
REAL A/C : 1.DEBIT WHAT COMES IN(LIKE ASSETS OR MONEY)
: 2.CREDIT WHAT GOES OUT( --DO-- )
NOMINAL A/C : 1.DEBIT ALL EXPENSES &LOSSES(BAD DEBTS)
: 2.CREDIT ALL INCOMES & GAINS (PREPAID INCOME)
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hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
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