What is “normal loss” and “abnormal loss” in consignment accounting?

Question

georgei assi · Answer

Ordinary loss, a loss occurring as a result of the normal activity of the company and can afford to profit and loss account, which does not have a significant effect on the activity of the company and its work plan The extraordinary losses that they get beyond the control of the company and cause change the course of the work of the whole company and lead to possible collapse or bankruptcy, such as earthquakes, storms and natural disasters, wars and conflicts

مستخدم محذوف‎ · Answer

Thank you for giving me an opportunity to answer.

Normal Loss is a loss which is incurred in the process of normal business operations. Normal loss occurs due to expenses which are incurred in recurring basis in the businss.

Abnoral loss is a loss which is not incurred in the process of normal business operations. Abnormal losses are not of a recurring nature. Like loss due to fire or theft in the warehouse is an abnormal loss. Abnormal losses are normally covered by insurance policies.

Nasir Hussain · Answer

Good Day!!!

I dont know a single word about consignment accounting..... please bear if i am wrong, as i am giving you my general opinion:

Normal Loss: A loss that is expected everytime with any consignment e.g., leakage, breakage etc.

Abnormal Loss: A loss that is not expected with every consignment e.g., Theft, Stolen, damage due to accident etc.

FITAH MOHAMED · Answer

in consignment accounting

***normal loss

Normal losers:

*- the loss resulting price movement

* - Natural damage of goods

*** Extraordinary losses

* - Accidents

* - Damage as a result of transport

ghasan katreeb · Answer

Thank you for your invitation and I hope that I understood the question correctly translation: Losses natural - it is usually in the permissible limits and carrying costs, The losses Giraltabieih after knowing the reasons causing carries on, or gains and losses and disasters such as storms, floods and things beyond the will of man

MUDDASSER ALI · Answer

Normal loss is occured in definately in normal course of buisness process (Manufacturing as well as trading)

On the otherhand,Abnormal Loss is such a loss which occured due to negligence,Natural Clamity,Mishandleing or Carelessness etc.

for eg, a cargo truck is loaded with oil cans and it moves from destination A towards B

Now the normal loss allocated10 ltrs regarding very minor leakage that will definately occur.

Now if the loaders of the truck mishandes the cans by throwing roughly or cans drop down on the road while tarvelling due to the negligence of truck Staff that is called Abnormal loss.

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What is “normal loss” and “abnormal loss” in consignment accounting?

***normal loss

*** Extraordinary losses

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