## Format of a Process Account
A Process Account is a T-account showing the inflow of cost and units on the debit side, and the outflow (output, losses, gains) on the credit side.
### Standard Format — Process I
| Particulars | Units | Cost (₹) | Particulars | Units | Cost (₹) |
|---|---|---|---|---|---|
| To Material | 1,000 | 26,000 | By Normal Loss | 100 @ ₹20 | 2,000 |
| To Labour | 7,000 | By Output (t/f to P-II) | 1,050 @ ₹40 | 42,000 | |
| To Overheads | 5,000 | By Abnormal Loss (if any) | xx @ ₹40 | xx | |
| To Abnormal Gain | 150 @ ₹40 | 6,000 | |||
| Total | 1,150 | 44,000 | Total | 1,150 | 44,000 |
### Reading the Account
Debit side (Inputs):
- Material, Labour, Overheads — at actual cost
- Abnormal Gain — at Normal Cost per Unit (because gain is credited as if produced)
Credit side (Outputs):
- Normal Loss — at scrap/SP value
- Output transferred to next process or FG — at Normal Cost per Unit
- Abnormal Loss — at Normal Cost per Unit
### Balancing Rule
- Total units on debit = Total units on credit
- Total cost on debit = Total cost on credit
If there is abnormal gain, it appears on the debit side (because gain means extra units were produced). If there is abnormal loss, it appears on the credit side.
A process account can have either abnormal loss OR abnormal gain — never both in the same process for the same period.