PROFIT, LOSS & DISCOUNT

Cost Price:

The price for which an article is bought is called cost price.

Selling Price:

The price at which an article is sold is called selling price.

Profit (Gain):

The different between the selling price and cost price is called the profit, when selling
price is greater than cost price.

Loss:

The different between the cost price and selling price is called the loss when cost price
is greater than selling price.

Marked Price:

The price on the label is called marked price.

Discount:

The reduction made on the ‘marked price’ of an article is called discount. When no
discount is given ‘selling price’ is the same as ‘marked price’.

Important formula in profit & loss:

1. Profit = Selling Price – Cost Price

2. Loss = Cost Price – Selling Price
Profit
3. Profit % = × 100
cost Price
Loss
4. Loss % = × 100
Cost Price
Profit % ×cost Price
5. Profit =
100
100+Profit %
6. Selling Price = ( ) Cost Price
100
100−Loss %
7. Selling Price = ( ) Cost Price
100

8. Selling Price = Marked Price – Discount

100
9. Cost Price = Selling Price × ( )
100+Profit %
100
10. Cost Price = Selling Price × ( )
100−Loss %
 PROFIT, LOSS & DISCOUNT

Discount
11. % Discount = × 100
Marked Price

Important points:

1. If two items are sold each at Rs. x, one at a gain of P % and the other at a loss of P %
p2
there is an overall loss given by %.
100

2. If cost price of two items is same and % loss and % gain on the 2 items are equal then
net loss or net profit is zero.

3. By using false weight if a substance is sold at cost price the overall gain % is given by

100+gain % True scale or weight

=
100 false scale or weight

ab
4. In case of successive discount a % and b % the effective discount is (a + b − )%
100