Profit & Loss

Profit
When an article is sold for more than what it costs we say there is a profit or gain.
e.g. If C.P. = Rs. 1200, S.P. = Rs. 1450, then Profit = Rs. 250.

Loss
When an article is sold for less than what it costs we say there is a Loss
e.g. If C.P. = Rs. 2200, S.P. = Rs. 2080, then Loss = Rs. 120

Net Price
The price after deducting the trade discount is called the net price.

Formula


Trade Discount
The reduction made on the market price of an article, is called trade discount.

e.g. If market price = Rs. 800 and discount = 15%, then
Discount = × 800 = Rs. 120
Note: Profit or Loss is always calculated on Cost Price i.e., CP and not on Selling Price i.e., SP
Remember (1) If two items are sold, each at Rs. x, first one at a gain of k% and the other at a loss of k%, there is an overall loss given by % (2) If C. P. of both the items is the same and % loss and gain are equal, then net loss or profit is zero.

Example: A shopkeeper uses 960 gram against a weight of One. Find his gain % Gain % = (Margin) × 100/Actual Weight

% gain = = 4 % Ans

Example: A man purchased some bananas @ 25/ Re and equal # @ 20/ Re. Both together mixed were sold @ 45/ Rs. 2. Gain or loss%?



Example: A sells some articles to B at a gain of 20%, while B to C at 25% gain. If C pays Rs. 975/-, How much did A pay for it?

Let CP of A = 100; SP of A = CP of B = 120
SP of B = CP of C = = 150; If C pays Rs. 150, CP of A = 100
If C pays Rs. 975, CP of A = 650 Ans

Example: Packets of ball pens were purchased for Rs. 450, One-third of the lot was sold at 10% loss. To gain overall 20% the remaining lot should be sold in what way?

Cost of one-third of the lot = Rs. 150
The selling price = Rs. 150 × = Rs. 135
The total expected SP = Rs. 450 × = Rs. 540
Hence the selling price of the remaining two-third lot should be = Rs. 405.
But the cost of this lot consisting two-third of the stock is = Rs. 300
? Gain = Rs. 105;
? Gain % is 35 Ans

Example: A trader alloys a discount of 5% for cash payment. How much % above the cost price must be he marks his goods to make a profit of 10%?

Let the CP be Rs 100; His selling price after profit is = 110
As he charges only 95% of marked price.
95% of the MP = Rs. 110. MP = × 110 = Rs. 115 = Rs. 115.79 Ans