Profit & Loss
Definitions:
Cost Price : The price at which an article is bought is called its Cost Price.
Selling Price : The price at which an article is sold is called its Selling Price.
Profit / Gain : Profit = Selling Price - Cost Price
The difference between the selling price and cost price is called the profit.
For profit, selling price > cost price.
Loss : Loss = Cost Price - Selling Price
The difference between the cost price and selling price is called the loss.
For loss, cost price > selling price.
Overhead Changes : If an individual has to spend some money on Transaction, Octroi, Taxes , etc.
Then this extra expenditure is called overhead charges.
Marked Price : (Mark, Label, List, Tad, Printed, MPR)
The price on the label is called the Marked price.
Discount : The relaxation made on the market Price of an article is called discount. When no discount is given the selling price is the same as marked price.
Equations :
Profit (P)= Selling Price(SP) - Cost Price(CP)
Loss (L) = Cost Price(CP) - Selling Price(SP)
Profit % = [(P/CP)*100] %
Loss % = [(L/CP)*100] %
Discount % = [(D/Marked Price)*100] %
Selling Price = Marked Price - Discount
Cost Price = Selling Price + Loss
Cost Price = Selling Price - Profit
Profit = (Profit% *CP) / 100
Loss = (Loss% *CP) / 100
SP = {(100+Profit%)/100}*CP
SP = {(100-Loss%)/100}*CP
CP = SP[100/(100+Profit%)]
CP = SP[100/(100-Loss%)]
- If an article is sold at a gain of 20% then SP = 120% of CP.
Cost Price = 100 Rs.
Profit = 20 Rs.
Selling Price = 120 Rs.
- If an article is sold at a loss of 20% then SP = 80% of CP.
Cost Price = 100 Rs.
Loss = 20 Rs.
Selling Price = 80 Rs.
- In case of 2 Successive Discount A% and B% is given on the Marked Price then effective Discount in Single Rate. (Flat Discount)
A% & B%
(50% + 40%) off
Flat Discount = [a+b-(ab/100)]%
= [50+40 - {(50*40)/100}]%
= [90 - 20]%
= 70%
- A person sale 2 similar items at the same price. One at a gain of X% and other at a loss of X% then in whole transaction the seller always incur a loss.
Loss % = (Common Profit% or Loss% / 10)*(Common Profit% or Loss% / 10)
- A dishonest dealer sale his goods at cost price but uses false weight then his gain% is
Gain % =[Error/(True Value - Error)]* 100
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Questions :
Example 1: Cost Price = 9.50 Rs. and Selling Price = 11.40 Rs., Find Profit Percentage.
Solution : Profit (P)= Selling Price(SP) - Cost Price(CP)
= 11.40 - 9.50
= 1.90 Rs.
Profit % = (Profit/CP) * 100
= (1.90/9.50) * 100
= 20 %
Example 2: Cost Price = 10.20 Rs. and Selling Price = 8.50 Rs., Find Loss Percentage.
Solution : Profit (P)= Cost Price(CP) - Selling Price(SP)
= 10.20 - 8.50
= 1.70 Rs.
Loss % = (Loss/CP) * 100
= (1.70/10.20) * 100
= 50/3 %
OR
= 16 integer (2/3) %
Example 3: Cost Price = 37.50 Rs. and Profit% = 12%, Find Selling Price..
Solution : SP = CP + Profit %
= 100 + 12
= 112
If CP = 100 than SP = 112
So, If CP = 37.50 than SP = ?
SP = (37.50*112)/100
SP = 42 Rs.
Example 4: By selling an article for Rs. 110. A man loss 12% for How much should he sale it to gain 8%.
Solution : Selling Price = 110, Loss = 12%
If CP = 100 and Loss = 12 then SP = CP - Loss = 100 - 12 = 88
If CP = 100 and Profit = 8% then SP = CP + Profit = 100 + 8 = 108
If SP = 88 in loss of 12% then SP = 108 in profit of 8%
If SP = 110 then SP = (110*108)/88
SP = 135 Rs.
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