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Normal Loss

Abnormal Loss

1

Normal loss is a loss which is depend upon the nature of the goods.

Abnormal loss does not depend upon the nature of the goods .

2

Normal

Loss

cannot

be avoided.

Abnormal

Loss

can be avoided.

3

It is charged to consignment A/c

It is debited to Abnormal loss A/c & credited to consignment A/c

4

Value of stock is inflated to cover the normal loss.

This type of loss does not effect

the value of goods

5

Example : evaporation, leakage, driage etc.

Example : loss by theft, fire

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