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Loss

☼ Loss : If S.P. < C.P., the seller is said to have incurred a loss.

Loss = C.P. – S.P.

Loss or gain is always reckoned on C.P.

( i.e. On calculating gain or loss C.P. is taken as 100 % )

When a person sells two similar items, one at a gain of x %, and the other at a loss of x%, then the seller always incurs a loss given by :

Loss % = $\frac{\left (\textup{Common Loss or Gain % } \right ) ^{2}}{100}$ = $\frac{x^{2}}{100}$