Cost Price:

The price, at which an article is purchased, is called its cost price, abbreviated as C.P. Selling Price: The price, at which an article is sold, is called its selling prices, abbreviated as S.P. Profit or Gain: If S.P. is greater than C.P., the seller is said to have a profit or gain. Loss: If S.P. is less than C.P., the seller is said to have incurred a loss. IMPORTANT FORMULAE 1. 2. 3. 4. Gain = (S.P.) - (C.P.) Loss = (C.P.) - (S.P.) Loss or gain is always reckoned on C.P. Gain Percentage: (Gain %) Gain % = Gain x 100 C.P.

Profit and Loss for CLAT 2013

5. Loss Percentage: (Loss %) Loss % = Loss x 100 C.P.

6. Selling Price: (S.P.) SP = (100 + Gain %) 100 x C.P

7. Selling Price: (S.P.) SP = (100 - Loss %) 100 x C.P.

8. Cost Price: (C.P.)

C.P. =

100 (100 + Gain %)

x S.P.

9. Cost Price: (C.P.) C.P. = 100 (100 - Loss %) x S.P.

10. If an article is sold at a gain of say 35%, then S.P. = 135% of C.P. 11. If an article is sold at a loss of say, 35% then S.P. = 65% of C.P. 12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by: Loss % = Common Loss and Gain % 2 10 = x 10
2

13. If a trader professes to sell his goods at cost price, but uses false weights, then Gain % = Error (True Value) - (Error) x 100

%.

Exercise:
1. Alfred buys an old scooter for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the scooter for Rs. 5800, his gain percent is: A. C. 4 4 % 7 10% B. D. 5 5 11 %

12%

Answer: Option B Explanation: Cost Price (C.P.) = Rs. (4700 + 800) = Rs. 5500. Selling Price (S.P.) = Rs. 5800. Gain = (S.P.) - (C.P.) = Rs.(5800 - 5500) = Rs. 300. % 11 % 2. In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit? 5500 Gain % = 300 x 100 =5 5

A. C.

30% 100%

B. D.

70% 250%

Answer: Option B Explanation: Let C.P.= Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420. New C.P. = 125% of Rs. 100 = Rs. 125 New S.P. = Rs. 420. Profit = Rs. (420 - 125) = Rs. 295. % = 70% (approximately). 21 % 3. Some articles were bought at 6 articles for Rs. 5 and sold at 5 articles for Rs. 6. Gain percent is: 420 A. C. 30% 35% B. D. 1 33 % 3 44% Required percentage = 295 x 100 = 1475

Answer: Option D Explanation: Suppose, number of articles bought = L.C.M. of 6 and 5 = 30. C.P. of 30 articles = Rs. S.P. of 30 articles = Rs. Gain % = 11 25 x 100 5 6 6 5 x 30 x 30 = Rs. 25. = Rs. 36.

% = 44%.

4. When a plot is sold for Rs. 18,700, the owner loses 15%. At what price must that plot be sold in order to gain 15%? A. Rs. 21,000 B. Rs. 22,500

C.

Rs. 25,300

D.

Rs. 25,800

Answer: Option C Explanation: 85 : 18700 = 115 : x x= 18700 x 115 85 = 25300.

Hence, S.P. = Rs. 25,300 5. A trader mixes 26 kg of rice at Rs. 20 per kg with 30 kg of rice of other variety at Rs. 36 per kg and sells the mixture at Rs. 30 per kg. His profit percent is: A. C. No profit, no loss 8% B. D. 5% 10%

Answer: Option B Explanation: C.P. of 56 kg rice = Rs. (26 x 20 + 30 x 36) = Rs. (520 + 1080) = Rs. 1600. S.P. of 56 kg rice = Rs. (56 x 30) = Rs. 1680. Gain = 80 1600 x 100

% = 5%.