Inter process profits are ________.

A. credited to each process a/c

B. debited to respective process a/c

C. shown only in the finished stock a/c

D. shown in the balance sheet

Answer: Option B

Solution(By Examveda Team)

Inter process profits are debited to respective process a/c. Inter process profit represents the value added to the output over its cost, while being transferred from one process to another. Since the value addition is without incurring any cost, it would amount to or result in an amount of profit equal to the value addition.