Abnormal loss is a loss that is unexpected and avoidable during production or normal business operations.

It does not normally occur under efficient working conditions.

Examples:

Loss due to fire

Theft of goods

Accident during production

Machinery breakdown

Unlike normal loss (which is unavoidable), abnormal loss is separate and controllable.

In simple terms, abnormal loss is an extra loss that happens due to unusual or unexpected reasons, and it is usually recorded separately in accounting.