Did you ever wondered how a shopkeeper is going to maintain his orders?
or how a lady is going to organise her monthly budget?
they all here and there use concepts of profit and loss , either knowingly or unknowingly,
So lets dive into these,
COST PRICE :
The price, at which an article is bought is called its cost price. All the overhead in the transaction like fright, damage , etc., are added to the cost price. Profit and loss percentage is always calculated as the percentage of CP unless otherwise specified.
SELLING PRICE :
The price at which an article is sold is called its selling price. There is a gain in the transaction, if SP>CP, where gain = SP-CP .
There is a loss in the transaction , if CP>SP, where, loss= CP-SP
LIST PRICE / MARKED PRICE :
The price of article excluding tax is known as marked price. Sometimes the shopkeeper increases or decreases the cost price ,then this price is the list price of the articles.
FORMULAS YOU NEED TO REMEMBER
- PROFIT = SELLING PRICE - COST PRICE
- LOSS = COST PRICE - SELLING PRICE
- PROFIT AND LOSS IS ALWAYS CALCULATED ON COST PRICE
- PROFIT % = (PROFIT / CP) * 100%
- LOSS % = (LOSS / CP) * 100%
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IMPORTANT RULES
- If there is a profit of r% , then SP = (100 + r)*CP / 100 and CP = (100*SP) / (100 + r)
- If there is a loss of r% , then SP = (100 - r)*CP / 100 and CP = (100*SP) / (100 - r)
- When there are two successive profits of x% and y% then the resultant profit percent is given by (x + y + (x*y / 100) ) %
- When there are two successive losses of x% and y% then the net loss per cent is given by (-x -y + (x*y / 100) ) %
- Where there is a profit of x% and loss of y% then the resultant profit or loss per cent is given by (x - y - (x*y / 100) )%
- If the cost of both the item be S. One is sold at a loss of r % and the other at a gain of R% , then Cost price of item sold at loss = (S* (100 + R)) / ((100 - r)+(100 + R)) Cost price of item sold at gain = (S* (100 - r)) / ((100 - r) + (100 + R))
- If 'a' part is sold at l% profit, 'b' part is sold at m% profit and 'c' part is sold at n% profit. If rs 'R' is earned as overall profit , then the value of total consignment = (R * 100) / (al + bm + cn)
- If a certain number of articles are purchased at 'r' a rupee and the same number at 'R' a rupee . He mixes them together and sells them at 'M' a rupee. Then, gain per cent or loss per cent =[(2Rr / M(r+R)) -1]* 100 % According as the sign +ve or -ve , If M = (r+R)/2 there is always loss. If r=R=M there is neither gain nor loss
- If cost price of 'n' articles is equal to the selling price of 'm' articles, then Profit Percentage = ((n - m) / m) * 100 % (n>m) and Loss Percentage =((m - n) /m )* 100% (m>n)
SELLING PRICE = MARKED PRICE - DISCOUNT
- If discount allowed is r%, then selling price = (100 - r) * marked price / 100
- If a shopkeeper marks his items at x% above the cost price and allows customers a discount of y% for cash, then there is (x - y - (xy / 100))% profit or loss according to positive or negative sign , respectively.
- Single discount equivalent to three successive discounts r1%, r2% and r3% = [1 - (1 - r1/100)*(1 - r2/100)*(1 - r3/100)] * 100%
- If marked price price of an item is rs x and the successive discount rates are r1% , r2% , r3% and so on , then selling price of item SP = x * (1 - r1/100 ) * (1 - r2/100 ) * (1 - r3/100)
kindly attempt the exercises too :)
| PROFIT AND LOSS EXERCISE 1 |
| PROFIT AND LOSS EXERCISE 2 |
| PROFIT AND LOSS EXERCISE 3 |
| HINTS AND SOLUTIONS 1 PROFIT AND LOSS |
| HINTS AND SOLUTIONS 2 PROFIT AND LOSS |
| HINTS AND SOLUTIONS 3 PROFIT AND LOSS |
| HINTS AND SOLUTIONS 4 PROFIT AND LOSS |
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