Well, to be frank I am weak in Accounts. So, I was studying this Process Accounting and then I got confused about Process Accounts itself. So, is process account a nominal account? If yes, then please explain why is it debited when materials are consumed i.e. { Process A/c Dr. ----- To --------- Direct Materials A/c }. I know why we credit Direct Materials but I am just curious about Process A/c.
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Process accounts
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processing means it is expenses. all expenses are nominal accounts. so debit process a/cs. Processing material is using from the raw material stock. when certain portion of stock is going to process, naturally raw material stock will reduce. For reduction of stock you have to credit the stock account
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