Give three examples of normal losses

1.	Give three examples of normal losses
Answer» The normal loss means loss which is inherited and can not be avoided. It should also be considered while valuing the closing stock.or example: If a certain amount of oranges are consigned, some of them will be destroyed in loading and unloading whereas some of them will not be in a state to be sold. Suppose, 10,000 oranges were sent to the consignee at ₹30 per kg and freight of ₹60,000. It is known that there would be a normal loss of 10%.Cost per kg = (300000 + 60000) / 9000 (i.e. 10000-10% of normal loss) = ₹40If unsold quantity is 500 its value will be (500*40=20000).

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