Balance of abnormal gain a/c is transferred to ________.

The correct answer is: C. credit side of profit and loss a/c

An abnormal gain is a gain that is not expected to occur regularly and is not part of the normal business activities of the company. Abnormal gains are usually recorded in a separate account called the “abnormal gain account”. The balance of the abnormal gain account is then transferred to the credit side of the profit and loss account.

The other options are incorrect because:

• Option A: The balance of the abnormal gain account is not transferred to the balance sheet.
• Option B: The balance of the abnormal gain account is not transferred to the debit side of the profit and loss account.
• Option D: The costing profit and loss account is not a standard accounting term.