Difference between Normal and Abnormal Loss:Basis of DifferenceNormal Loss Abnormal LossCauseIt occurs due to the nature of the goods consigned such as evaporation, loss of weight, drying, etc.Abnormal loss is the loss that may arise due to mishap, mischief, and inefficiencyAvoidableIt is unavoidableCan be avoided with due precautionsInsuranceCannot be insuredCan be insuredJournal EntriesNo separate journal entries doneProper journal entries are done in the books of the consignorTreatment of normal loss and abnormal loss in accountsThe cost of normal loss is borne by the remaining goodsThe cost of abnormal loss is not adjusted with the cost of the remaining goodsPart of CostIt becomes a part of the costIt is charged to the profit & Loss account