PROFIT AND LOSS

OVERVIEW
Formula and Basics
Shortcuts
Gist of Profit and Loss
Exercises
 Formula
Profit = SP – CP Loss = CP – SP

% profit = × 100

% loss = × 100
Formula

SP = × CP SP = × CP

CP = × SP CP = × SP
 Formula

When two articles are sold at a same selling price getting a

gain of x% on the first and loss of x% on the second, then
the overall % of loss in the transaction is
Loss =
 Gist of Profit and loss
A Person buys a book for Rs.200 and sells it for Rs.225. What
will be his gain percent?

Formula method: Percentage method:

% profit = × 100 100% --------- 200

% profit = × 100 x% --------- 25

% profit = 25 / 2 = 12.5% x = 25 / 2 = 12.5%

 Gist of Profit and loss
A Person buys a watch for Rs.500 and sells it for Rs.300.
What will be his loss percent?

Formula method:
Percentage method:
% profit = × 100
100% --------- 500
x% --------- 200
% profit = × 100
x = 200 / 5 = 40%
% profit = 200 / 5 = 40%
 Gist of Profit and loss
A Gold bracelet is sold for Rs.14500 at a loss of 20%. What is
the Cost of the bracelet
Formula method: Percentage method:

CP = × SP 100% --------- x

CP = × 14500 80% --------- 14500

CP = 181.25 × 100 x = 145000 / 8

= Rs.18125 = Rs.18125
 Gist of Profit and loss
A Calculator is bought for Rs.350 and sold at a gain of 15%.
What is the selling price of the calculator?

Formula method: Percentage method:

SP = × CP 100% --------- 350

SP = × 350 115% ------------ x

SP = Rs.402.5 x = Rs.402.5
 Gist of Profit and loss
By Selling a Watch for Rs.2400, a shopkeeper makes a profit of 25%.
Then, his %profit if he has sold it for Rs.2040 is?

Formula method:
CP = × SP Percentage method:

% profit = × 100 125% --------- 2400

CP = × 2400 = Rs.1920 x% ---------- 2040

% profit = × 100 x = 106.25% = 6.25% profit

= 120 / 1920 × 100 = 6.25%
 Gist of Profit and loss
By Selling an article for Rs.720, a man loses 10%. At what price
should he sell it to gain 5%?

Formula method:
Percentage method:
CP = × SP
90% --------- 720
CP = × 720 = Rs.800
105% ----------- x
SP = × CP
x = Rs.840
SP = × 800 = Rs.840
EXERCISE
John purchased 20 dozens of Apples at the rate of Rs.350 per dozen. He sold
each one of them at the rate of Rs.30. What was his percentage profit?
Formula method: Percentage method:
Total CP of Apples = Rs.350 * 20 = Rs.7000 100% --------- 7000
Total apples = 20 * 12 = 240 x% ----------- 7200
Total SP of apples = Rs.30 * 240 = Rs.7200 x = 102.85%
% profit = (SP – CP)/CP * 100 = 200/7000 * 100 = 2.85%
100 eggs are bought at the rate of Rs.450 and sold at the rate of Rs.36 per
dozen. The percentage of profit or loss is?

Formula method: Percentage method:

CP of 1 egg = 450/100 = Rs.4.5 100% --------- 4.5

SP of 1 egg = 36/12 = Rs.3 x% ----------- 3

%loss = 4.5 – 3/4.5 * 100 x = 66.66% = 33.33% loss

= 1.5 / 4.5 * 100 = 33.33%
A shopkeeper sells one commodity for Rs.780 at a gain of 30% and another for
Rs.950 at a loss of 5%. His total gain or loss percent is?
Percentage method:
Formula method: CP1 = 100% ------ x
130% ------ 780
CP1 = × SP = × 780 = Rs.600 x = 780 * 100 / 130 = Rs.600

CP2 = × SP = × 950 = Rs.1000 CP2 = 100% ------ x

95% ------ 950
x = 950 * 100 / 95 = Rs.1000
% profit = × 100 = × 100
100% ------ 1600
% profit = 130 / 16 = 8 % = 8.125% x% ------ 1730
x = 1730 / 16 = 108.125%
A person sells 30 Lemons per rupee and suffers a loss of 4%.
Find how many lemons per rupee to be sold to have a gain of 20%?

SP of 30 lemon at 4% loss = Rs.1 SP of 30 lemons at 4% loss: 96% ------- 1

CP of 30 lemon = × SP = × 1 = CP of 30 lemons at 20% gain: 120% ------ x

SP of 30 lemon at 20% gain = × CP 96% ------- 1

120% ------ x
= × =
CP of 30 lemons at 20% gain : x = Rs.5/4
30 lemons ------ Rs. No. of lemons per rupee =
x lemons ------ Rs. 1 = 24 lemons
x = 30
x = 24 lemons
By selling 80 metres of wire a person gains the cost price of 20
metres. Find the gain per cent.

Let CP of 80 m wire = Rs.80

Gain of 20 m = Rs.20

SP of 80 m = 80 + 20 = Rs.100

% profit = × 100 = × 100 = 25%

Two Watches are sold at Rs.15000 each at 12% loss and 12% gain
respectively. What is its loss or gain percentage?

% loss = = = 1.44%
A shopkeeper marks his good at such a price that he can deduct 10% for cash
and yet make 20% profit. Find the marked price of an item which costs him
Rs.100.

Let CP be Rs.100
Let CP = Rs.100, then SP = Rs.120
Then SP at 20% profit = Rs.120
90% ------ 120
Good is being sold at 10% for Rs.120
100% -------- x
Marked price = × 120
= Rs.133.33 x = Rs.133.33
A Trader selling rice at cost price, uses 800 grams instead of 1 kg.
What is his gain percent.

let CP of 1 kg rice = Rs.1000 (1 gram = Re.1)

SP at CP 1 kg of Rice = Rs.1000

But he uses 800 grams instead of 1 kg,

Then, CP of 1 kg rice = Rs.800
SP of 1 kg rice should be = Rs.800

% profit = × 100 = × 100 = 25%

Riya sold her car for Rs. 50,000 less than what she bought if for and lost
8%. At what price should she have sold the car, if she wanted to gain as
much as she lost in the first transaction?
• A. Rs. 6,25,000
• B. Rs. 6,50,000
• C. Rs. 6,75,000
• D. Rs. 6,37,000
• E. Rs. 7,00,000
• If the selling price is doubled, the profit triples. Find the profit
percent.
A 66 ⅔ B 100 C 105 ⅕ D 120
• A farmer bought toffees at 6 for a rupee. How many for a rupee must
he sell to gain 20% ?
• A rice dealer bought 60 kg of rice worth Rs. 30 per kg and 40 kg of rice
worth Rs. 35 per kg. He mixes the two and sells the mixture at Rs. 40
per kg. What is the percentage profit in this deal
discount
The CP of Two types of coffee beans are Rs.150 per kg and Rs.180 per kg
respectively. On mixing them in the ratio 3 : 5, the mixture is sold at Rs.200 per
kg. In the whole transaction, the gain percent is:

CP of 8 kg of coffee = 150 * 3 + 180 * 5 = Rs.1350

SP of 8 kg of coffee = 200 * 8 = Rs.1600

% Gain = (1600 – 1350)/1350 * 100

= 250/1350 * 100

%Gain = 18.5%
A trader marks his articles 20% above the cost price and allows his
customer 10% reduction on their bills. What is his % Gain?

Let CP be Rs.100; then MP = Rs.120

Then SP = 10% on MP = 120 - 10% of 120

= Rs.108

% Profit = (108 – 100)/100 * 100 = 8%

Madhu bought two articles for Rs.1000 each. She sold one at loss of
10% and other at 5% profit. Find the gain or loss percent.
SP1: 100% ----- 1000
90% ----- x
SP1 = × CP = × 1000 = Rs.900 SP1 = Rs.900

SP2 = × CP = × 1000 = Rs.1050 SP1: 100% ----- 1000

105% ----- x
% loss = × 100 = × 100 = 2.5% SP1 = Rs.1050

% profit: 100% ----- 2000

x% ------1950
x = 97.5% = 2.5% loss
A businessman bought a company shares at 10% discount on its original price.
He sold it at a 30% increase on the price he bought it. What percent of profit
did he make on the original price?

Let Original Price be Rs.100

100% ----- 90
Then CP = Rs.90
130% ------- x
SP at gain SP = × CP
x = Rs.117
= × 90 = Rs.117
1. A shopkeeper offers ‘Buy 1 Get 1 Free’ offer on t-shirt marked at Rs. 2,400. If
after a sale, theshopkeeper earns a profit of 33.33%. Then what is the actual
price of the t-shirt?

A. Rs. 900
B. Rs. 800
•C. Rs. 1200
•D. Rs. 1000
•E. Rs. 1500
1. Every year before the festive season, a shopkeeper increases the price of the
products by 35% andthen introduces two successive discounts of 10% and 15%
respectively. What is his percentage loss or gain?
A. 3.27% loss
B. 3.27% gain
C. No profit, no loss
D. 8.875% loss
E 8.875% gain
partnership
1. A total profit of Rs. 36,000 is to be distributed among Rajesh, Salesh and Rajeev such tha Rajesh:Salesh ::
5 : 4 and Salesh : Rajeev :: 8 : 9 . What is the share of Rajeev?
•A. Rs. 12,000
•B. Rs. 24,000
•C. Rs. 10,000
•D. Rs. 20,000
• A, B, and C subscribe to Rs. 50,000 for a business. A subscribes Rs.
4000 more than B and B Rs. 5000 more than C. Out of a total profit of
Rs. 35,000, A receives:
• A 8400 B 11900 C 13600 D 1470