Profit And Loss

Basic formulae:

1. Cost Price, (c.p.) = The price, at which an article is purchased, is called its cost price.

2. Selling price (s.p) = The price, at which an article is sold, is called its selling price.

3. Profit or Gain = (S.P) - (C.P)

4. Loss = (C.P) - (S.P)

5. Gain or Loss is always reckoned on C.P.

6. Gain% = (Gain*100) / C.P

7. Loss% = (Loss*100) / C.P

8. S.P = (100+ Gain %) /100 * (C.P)

9. S.P = (100 - Loss %) / 100 * (C.P)

10. C.P = 100 / (100 + Gain %)* (S.P)

11. C.P = 100 / (100 - Loss %)* (S.P)

Important cases:

1. If an article is sold at a profit of say, 20%, thenS.P.= 120% of C.P..

2. If an article is sold at a loss of say, 20%, thenS.P.= 80% of C.P..

3. When a person sells two similar items, one at a gain of say x% and the other at a loss of say x%. then the seller always incurs a loss given by:
Loss% = (x/10)²

4. If a seller sells his goods at cost price but uses false weights, then Gain% = [Error/(True value - Error) * 100]%