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Commerce · Q381

Accounting

Graduate and Post Graduate · Commerce · question 381

Q381

No journal entry is required to be passed when there is

A.
Loss by theft
B.
Normal loss
Answer
C.
Loss of bad debts
D.
Abnormal loss of business

Answer: Option B

Solution

Answer: Option B
Solution:
No journal entry is required to be passed when there is Normal loss. Normal loss increases the cost of production of the usable goods realized.