Chapter 21) PROFIT AND LOSS In the exams, many questions are asked on this topic. This chapter is largely based on the concepts of percentage. Therefore, you must learn the rules mentioned in Percentage chapters before starting this chapter, Cost Price: The price paid by the purchaser for buying the article is called cost price of the article. Selling Price: The price at \hi article. the article is sold by the seller is called selling price of the Profit: The article is said to be sold at profit, if its Selling Price is more than its Cost Price. Profit = Selling Price ~ Cost Price Selling Price = Cost Price + Profit Loss: The article is said to be sold at loss, if its Selling Price is less than its Cost Price: Loss = Cost Price ~ Selling Prive Selling Price = Cost Price ~ Loss PRO! AND LOSS PER CENT Profi/Loss per cent is relation between Profit/Loss and Cost Price of an article. Therefore Profit or Loss per cent is always cal >lcted on Cost Price, unless mentioned otherwise. Profit, , Profit (per cent)= Tost price ” Loss. Loss (per cent) = Tost price “10 Example: An article costing Rs. 10 is sold for a profit of Rs. 2. Find profit percent, Solution: Profit per cent = j3; x 100 = 20% When the article is sold at Profit: Selling Price = Cost Price « 100+ Profitpercentage ing Pri 100 Cost Price = Selling Price « {597 Pratit percentage 210 vuunnien wure unoudilerProfit and Loss. an ‘When the article is sold at Loss: Selling Price = Cost Price « 100" Loss percentage " . 100 Cost Price = Selling Price * T§9—Toss percentage CALCULATING PROFIT PER CENT WHEN GAIN IN ARTICLES IS GIVEN If on selling ‘x’ articles, a man gains equal to the cost price of ‘y’ articles Then Profit = ‘To convert the fraction into percentage, multiply the fraction by 100. i selling ‘x’ articles, a man gains equ: selling price of *y’ articles, Then Profit = ae x=y ‘To convert the fraction into percentage, multiply the fraction by 100. Note: Loss is denoted by negative profit. MORE FORMULAE 1. A shopkeeper marks his goods at x% above the cost price and then allows y% discount on the marked price, then, His profit percent = x y~ 735 If price of an article is marked x% above the cost price and x% discount is allowed on its marked price. Then lass per cent = 715; 3. If two articles are sold for the same selling price. On selling first article, 2 man gains x% and on selling the other article he loses x%, in such cases there will be always loss, and 2 = X2 j, (Common Gain and Loss Loss % To * oO 4. If two articles are sold for the same selling price. On selling first, a man gains x% and on selling the other he gains y% 100 2 Then profit percentage inthe transaction = “Oyp*22* 24 Note: Negative value of ‘numerator’ denotes loss. 5. | RELATION BETWEEN PROFIT/LOSS AND COST PRICE/ SELLING PRICE. WHEN THE ARTICLE IS SOLD AT PROFIT: We know that Cost price + Profit = Selling price + Cost Price < Selling Price vuuniien wure Curnoudriner212 Quick Arithmetic ©. If we shift from Cost Price to Selling price.(i.e. to bigger base), smaller fraction is required and vice-versa. (a) Ifprofit is © of cost price, then Profit is —L- of the selling price. x+i Example: If profit on selling a commodity is 4 of cost price, then Profitis 54 = | of the selling price. (b) Ifprofiis 1 of selling price, then Profit is 4; of the cost price. Example: If profit on selling a commodity is $ of selling price, then Profitis 54; = } ofthe cost price WHEN THE ARTICLE IS SOLD AT LOSS: We know that, Cost price ~ Loss = Selling price ©. Cost Price > Selling Price + If we shift from Cost Price to Selling price (i.e. to smaller base), bigger fraction is required and vice-versa. (a) If Lossis + of cost price, Then Loss is =; of the selling price Example: I loss on selling a commodity is $ of cost price, ‘Then Loss is sort of the selling price () If Lossis + of selling price, Then Loss is 1; ofthe cost price Example: If loss on selling a commodity is } of selling price, then Vuuren ware CurnouarinterProfit and Loss 213 Loss is 54; = } of the cost price 6, On selling an article for Rs. x, a person ears a% profit. In order to earn b% profit. he must 100+b sell the article for Rs. x * jo0+a 100 + Desired Profi [ New Selling price = Old Selling Price « T00 > Initial Prot ant Example: Ifon selling an article for Rs. 220, a shopkeeper cams 10% profit, what should be the selling Price if desired profit is 20%? Solution: 100 + 20 = 220 x 100+ 20 _ 499, 120 Rs 2 New Selling Price = 220 « 765-79 = 220 jig = Rs. 240 7.| If two articles are sold ~ first article at x% profit and the second article at y% loss, thus making no profit, no loss in the transaction, ‘Then Cost Price of the two articles are in the ratio of y : x. Proof: Let cost price of two articles is Rs.a and Rs.b respectively. Then profit on first article = 755 ‘And loss on second article = % Since there is no profit or no loss in the bargain. ax. by 100 100 . ax=by ©. Cost of first article : Cost of second article = Loss % on second article : Profit % on first article 8. Aman purchases some articles (@ “a’ articles for Rs.b and sells them @ *x" articles for Rs.y. Then his profit % in the transaction is 4—* Note: (ay ~ bx) is difference in cross multiplication of the four numbers as explained below: " Note: Negative value of (ay — bx) denotes loss. Vuuren ware Curnouarier