I recently bought a 2nd gen 32 GB nexus 7 and while checking everything of the tab, I noticed that it was showing 26 GB total space and to confirm it I pugged it on my laptop and it showed that it has 26 GB total space. Is this normal?
No technology of any type that I have seen in the last 30+ years working with computers advertises available memory, they adevertise total memory. The memory you are "missing" is used by the os. You have 32 GB of memory, but not all of it is usable.