Question

Distinguish between normal and abnormal loss with an example.

Answer 1

Abnormal loss: The type of loss which occurs due to some unfortunate incidence which can be avoided such as fire, or some other accidents. Normal loss is the expected loss or the loss which is anticipated prior to the production. For example, shrinkage, evaporation, rusting etc

Answer 2

Hey mate ☺️

NORMAL LOSS:

Normal loss is the expected loss or the loss which is anticipated prior to the production. For example, shrinkage, evaporation, rusting etc. Normal loss increases the cost of production because when the cost is being recovered it results in the higher cost of production.

ABNORMAL LOSS:

Abnormal loss is the one which is not realized and arises because of bad working conditions, carelessness, rough handling, lack of knowledge, machine breakdown, accident etc. And the abnormal loss is assessed on the basis of production cost where profit and loss account is charged. 

I Hope it helps you ☺️ ✌️ ✌️