Profit and Loss


Terms Frequently Used:

 P/G = Profit / Gain

 L = Loss

 CP = Cost Price

 SP = Selling Price

 MP = Market Price

 D% = Discount Percent
Formulas:

Profit/Gain= Profit % = %

Loss= CP – SP Loss % = %
Formulas…

Given : CP and gain% Given : CP and loss%

Question : SP Question : SP

SP = SP =
Formulas…

Given : SP and gain% Given : SP and loss%

Question : CP Question : CP

CP = CP =
 
Please Don’t Study these Formulas
Instead of Study these Easy Logics

1) CP = 100%
MP = 100%

2) P% = 100 %
All these three %
L% = 100 %
refers to SP Only
D% = 100 %

3) % logic
What is that % logic?

Logical Method

Logical Method Examples

Eg 1.)
35% -----> 700
60% -----> ?
700 = 1200

Eg 2.)
75% ------> 300
60% ------> ?
300 = 240
Startup Examples

1)CP = Rs.15,000 100% === 15000
g% = 20% 120% === ?

SP =? =15000 × 120/100
= 18,000
 
2)CP = Rs.8,000 100% === 8000
L% = 25% 75% === ?

SP =? = 8000 × 75/100
= Rs.6000
 
3)SP = Rs.12,000 150% === 12,000
g% = 50% 100% === ?

CP =? = 12000 × 100/150
= Rs.8,000
 
4)SP = Rs.8,000 80% === 8000
L% = 20% 100% === ?

CP =? = 8000 × 100/80
= Rs.10,000
 
5)MP = Rs.6000 100% === 6000
D% = 20% 80% === ?

SP =? = 6000 × 80/100
= Rs.4800
 
6)SP = Rs.9000 75% === 9000
D% = 25% 100% === ?

MP =? = 9000 × 100/75
= Rs.12,000
Q.1) A trader lost 20% by selling a watch for Rs.2400. What
was the original price of the watch?

a)Rs.3600 b)Rs.1800
c)Rs.3000 d)Rs.2000
Q.1)Explanation:

SP = Rs.2400
L% = 20%
CP =

= => =>Rs.3000
Q.1)Easy Approach

 CP = ? Therefore,
 L% = 20% 2400 == 80%
 SP = 2400 ? === 100%

CP === 100%
SP with Loss 20% ===80% 2400 = 3000
Q.2) By selling an article for Rs.3200 a man loses 20%. At
what price should he sell it to gain 20%?

a)Rs.4400 b)Rs.4800
c)Rs.6400 d)Rs.4000
Q.2)Explanation:

SP = Rs.3200 CP = Rs.4000
L% = 20% g% = 20%
CP = SP =
=
CP =
= =>Rs.4800

CP = Rs.4000
Q.2)Easy Approach

 SP = Rs.3200 Therefore,
 L% = 20%
3200 == 80%
 G% = 20% ? === 120%
 SP = ?

3200 = 4800
SP with Loss 20% === 80%
SP with gain 20% ===120%
Q.3) A trader sells an item at a loss of 10%. If he had sold it
for Rs.600 more, he would have gained 10%. Find the cost
price of that article?

a)Rs.4000 b)Rs.5000
c)Rs.4500 d)Rs.3000
Q.3)Explanation:

CP = x
L% = 10% g% = 10%
SP = 90% of x => SP = 110% of x =>
+ 600=
=> = 600
x= Rs.3000
Easy Way

Loss 10%
90%
20% 600
Gain 10%
110%
20% = 600
100% = ?

600 =Rs.3000
 
Q.4) Arun purchased a Book for Rs. 5000 and sold it to Barath at a
profit of 10% and Barath sold it to Chandru at a profit of 10% and
Chandru sold it to Dinesh at a loss of 20%. How much did Dinesh pay
for the book?
a)Rs.4840 b)Rs.4940
c)Rs.4580 d)Rs. 4860
Q.4)Explanation:

10% gain 10% gain 20% loss
Arun Bharath Chandru Dinesh

Rs.5000 ?

5000 = Rs.4840
 
Q.5) Deepa purchased a jewelry set and sold it to Uma at a profit of
10% and Uma sold it to Priya at a loss of 10% and Priya sold it to
Divya at a gain of 10%. If Divya Rs.21,780 then how much did Deepa
purchased it?
a)Rs.20,000 b)Rs.18,000
c)Rs.18,580 d)Rs. 22,000
Q.5)Explanation:

10% gain 10% loss 10% gain
Deepa Uma Priya Divya

? Rs.21,780

() = 21,780

= 21780
= Rs.20000
 
Q.6)Cost price of 12 articles is equal to Selling Price of 8 articles. Find
the gain percent?
a)20% b)40%
c)50% d)60%
Q.5)Explanation:

Assume CP of 1 article = Rs.100
CP of 1 article = Rs.100
Then CP of 12 articles = Rs.1200 SP of 1 article = Rs.150

SP of 8articles = Rs.1200 G % = 100

SP of 1 article = Rs.
= Rs.150 G% = 50%
Q.5)Shortcut:

If CP of ‘a’ articles is equal to SP of ‘b’ articles then gain% or
loss% is given by,

If the result is (+)ive, then gain.

If the result is (-) ive, then loss.
g% = % =>50%
 
Q.6)The profit earned by selling an article for Rs. 1200 is equal to the
loss incurred when the same article is sold for Rs. 800. What should be
the sale price of the article for making 25 per cent profit?
(a) Rs. 1300 (b) Rs. 1250
(c) Rs. 1400 (d) Rs. 1000
Q.6)Explanation

Let the cost price of that article = CP = Rs.1000
Rs. X Gain % = 25 %
Then, gain = 1200 – x
Loss = x – 800 SP =
=
1200 – x = x – 800 = Rs.1250
2x = 2000
x = 1000
 
Q.7)The original price of a computer is Rs.12000. The price is
discounted by 10% and then raised by 20%. What is its new price?
a)Rs.12960 b)Rs.12820
c)Rs.12840 d)Rs.12600
Q.7)Explanation:

CP = Rs.12000
D% = 10% =>90%
Raised by = 20% => 120%

New price = 12000

= Rs.12960
 
Q.8)What single discount is equivalent to two successive discounts of
35% and 10%?
a)30% b)32%
c)25% d)41.5%
Q.8)Explanation:

 Logic : 100 -

 = 100 - => 100 – 58.5 = 41.5%
Q.8)Shortcut

 Single discount equivalent for 2 successive discount is,
%
 a= -35 ; b= -10
 = % =>41.5%
 
Q.9)If three successive discounts on a commodity are 10%, 20% and
30% respectively, what is the single discount on it?
a)46.7% b)49.6%
c)52.08% d)46%
 Q.9)Explanation:

 Logic : 100 -

 = 100 -
 = 100 – 50.5 = 49.6%
 
Q.10)A shopkeeper sold sarees at Rs.480 each after allowing a
discount of 20% on the labelled price. Had he not given the
discount, he would have earned a profit of 50% on the cost price.
What was the cost price of each saree?
a)Rs.540 b)Rs.900 c)Rs.450 d)Rs.400
 Q.10)Explanation:

 SP = Rs.480
 D% = 20%
 MP = => = Rs.600

 Had he not given any discount means SP = Rs.600
 Then g% = 50%
 CP = => = Rs.400
 
Q.11)A reduction of 20% in the price of rice enables a person to buy
6 kg more for Rs 360. Find the original price per kg of rice?
a)Rs.10 b)Rs.15 c)Rs.18 d)Rs.36
 Q.11)Explanation:
 Quantity Unit Total
(in kg) Price
(per kg)

XY = (X + 6) *
X= 24 kg Y = 360/24 = Rs.15
Y = Rs.15

Origin (X) kg Rs.Y Rs.360

al
 
Q.12)A dealer professes to sell his goods at cost price, uses a 900
gm weight for a kilogram. His gain percent is:
a)9 % b)10% c)11% d)11 %
 Q.12)Explanation:

 Gain% = %
 Original Quantity (True Value) = 1000 g
 New Quantity (False Value) = 900g
 g% = %
 g% = 11 %
 
Q.13)A person wants to get 20% profit after selling his object at
20% discount. Find the required percentage increase in marked
price.
a)50 % b)40% c)45% d)55%
 Q.13)Explanation:

 Assume CP = Rs.100
 G% = 20%
 SP = => = Rs.120
 SP = Rs.120
 D% = 20%
 MP = => = Rs.150

 CP = Rs.100 then MP = Rs.150
 % Increase = 50%
 Q13)Shortcut

 % Increase = %
 = = 50%
 
Q.14)If a man purchases 12 mangoes for Rs. 10 and sells 10
mangoes for Rs. 12. How much profit or loss does he make?
(a) 44% loss (b) 44% profit (c) 24% loss (d) 24% profit
 Q.14)Explanation:

 CP of 1 mango = Rs. = SP of 1 mango = Rs. =
 G% = %
 = % = 44%gain
 Q.14)Shortcut

 If CP of ‘a’ articles is Rs.b and SP of ‘c’ articles is Rs.d, then gain or
loss percent is given by,
%
 ->If the result is (+)ive then profit
 -> If the result is (-)ivethen loss
 a=12 ; b=10 ; c=10 ; d=12
 % = 44%
 
Q.15)A shopkeeper marks price of his articles 12% above
the cost price and then allows 12% discount on the marked
price. What is his loss per cent?
(a) Rs. 1.44% (b) Rs. 4.14% (c) Rs. 15.2% (d)
5.55%
 Q.15)Explanation:

Let the CP of an article = Rs.100
Market price is 12% above the CP
MP = Rs.112
D% = 12%
SP = => = = 98.56

loss = 100 – 98.56 = 1.44

loss % = 1.44%
 Q.15)Shortcut

 Same % increase and same % decrease then always
loss incurs.
 Loss% = %

 => % = = 1.44% loss