Profit and Loss-Lesson1

In this post, we will learn some basic formulas of profit and loss and start solving some basic problems related to them.

Now let's understand some basic terminologies using an example.

Q. Arun goes to a shop to buy a pen, the shopkeeper sells him the pen at Rs 15. While he himself bought the pen at Rs 12, however the marked price on the pen is Rs 18. Calculate the Profit, Profit%, Discount, Discount%.

Basic Terminologies:-

Selling Price (SP) = Rs 15

Cost Price (CP) = Rs 12

Marked Price (MP) / Catalogue Price / Maximum Retail Price (MRP) = Rs 18

Formulas:-

Solution to the Problem:-

Q. Find the ratio of CP to SP, if Profit % = 40 %.

Solution:-

Now if you are solving using the basic formulas in the placement exam then you will completely ruin your exam because you will have no time left to solve other problems because time also matters in the exams.

So there is an important trick in Profit and Loss which will help you solve many of the problems.

First of all, you need to know a point that Profit% = 40% implies Profit is equals to 40% of CP.

One more thing which we can know is that if Profit% = 40 % and CP = 100 then Profit =40 which we can conclude it using the above-mentioned point. Similar is the case for loss i.e if Loss%=40% implies Loss is equaled to 40% of CP and if CP=100 then Loss = 40.

Trick:-

Q. Find the Cost Price of an box of oranges if they are sold at a price of Rs 1500 and the Profit gained is 50%.

Solution:-

Q. Find Selling Price of a Shirt if the Profit in percentage is 35% of Selling Price and Shirt is bought at a Price of Rs 300.

Solution:-

Important Points to Remember:-

• Profit / Loss is always calculated upon CP, unless mentioned in the question.
• Loss is nothing else but negative profit.
• Profit is also called as Gain.
• If you feel any problem is difficult then try to assume CP as 100 and solve the problem. In this way, you will feel very easy to solve and also calculations become easy thus sparing more time for other problems.

Practice Problems:-

Q. Find the Gain or Loss incurred, Gain% / Loss% by selling an electronic gadget at Rs 500 If it was bought at a price of Rs 600, also find the Discount and Discount% if it's catalogue price was Rs 800.

Q.Find the ratio of SP to CP if Loss% is 30%.

Q.Find the ratio of MP to SP if discount% is 25%.

Q.Find SP if CP = 900 and Loss% = 15 % of SP.

Please let us know your answers in the comment box given below.

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