PROFIT AND LOSS

 CP = Cost Price = The price at which an object is Purchased

 SP = Selling Price = The price at which the object is Sold.
When SP < CP → Loss = CP - SP
When SP > CP → Profit = SP - CP
Note: Loss% and Profit% both are calculated upon CP
Profit% = [Profit/CP] * 100
Loss% = [Loss/CP] * 100
 When profit% is given, say, 10% profit
If 10% profit, then we simply do SP = 1.1*CP

If CP is given, then SP is calculated, and if SP is given then

CP is calculated (CP = SP/1.1)

When loss% is given, say, 10% loss

For 10% loss, SP becomes 90% of SP = 0.9*CP

If CP is given, then SP is calculated, and if SP is given, then

CP is calculated (CP = SP/0.9)
  DISCOUNT:
Discount (if SP < MP) = MP - SP i.e.
SP = MP - Discount

MP → - Discount → = SP

Always Remember: Discount is deducted from Marked

Price. So, Discount is always calculated on MP

And %Discount = [Discount/MP]*100

Means to say, if 500Rs is MP and 50Rs is discount, then

discount% = [50/500]*100 = 10%
SP and MP relation

if 10% discount is there, then SP becomes [100-discount%] of MP,

means SP = 90% of MP, means SP = 0.9*MP

So, if MP is given, we can calculate SP and if SP is given, then MP is

calculated (MP = SP/0.9)

 If markup is there and after discount, there is a profit, then: CP < SP

< MP
 If markup is there and after discount, there is no profit no loss, then:
CP = SP < MP
 If markup is there and after discount, there is a loss, then, SP < CP
< MP
 SUCCESSIVE DISCOUNTS
 3 successive discounts of 10%, 20% and 30% then to
calculate effective discount we assume that marked price
is 100,
 then final value becomes 0.90 × 0.80 × 0.70 × 100 = 0.54
× 100 = 50.4
 Total discount = 49.6%.

 When there  are two successive Profit of x % and y % then

the resultant profit  per cent is given by 
If there is a Profit of  x% and loss of  y %  in a transaction,
then the  resultant profit or loss% is given by 

FALSE WEIGHT PROBLEMS:

If a trader professes to sell his goods at cost price, but uses
false weights, then 
If a person sells two similar articles, one at a gain of a% and
another at a loss of a%, then the seller always incurs a loss
which is given by

Loss%=(a/10)^2 %

 If a‘ th part of some items is sold at x% loss, then required

gain per cent in selling rest of the items in order that there is
neither gain nor loss in whole transaction, is

(ax)/(1-a)%
 If cost price of 'a' articles is equal to the selling price of 'b'
articles, then profit percentage
=(a-b)*100/b

 If a dealer sells his goods at a% profit on cost price and

uses b% less weight, then his percentage profit will be
(b+a)/(100-b)X100%

 If 'a' part of an article is sold at x% profit/loss, 'b' part

at y% profit/loss and c part at z% profit/loss and finally there
is a profit/loss of Rs. R, then Cost price of entire article=RS.
(R*100)/(ax+by+cz)
 QUESTIONS:
1. A man buys an item for Rs 30 and sells it at for Rs.36. Find his gain
percent.
A. 25% B. 20% C. 30% D. 25.5%
SOL. B

2. A sells a good to B at a profit of 20% and B sells it to C at a profit of

25%, if C pays Rs.225 for it, what amount A paid for it.?
A. Rs. 150 B. Rs. 430 C. Rs. 250 D. Rs. 330
SOL. A
3. The profit earned on selling an article for Rs.634 is equal to the
loss on selling the same article for 466 what is the cost price?
A. Rs. 550 B. Rs. 230 C. Rs. 370 D. Rs. 350

SOL.A

4. If a man purchases 11 oranges for Rs.10 and sells 10 oranges

for Rs.11. how much profit or loss percent does he make?
A. Rs. 23 B. Rs. 25 C. Rs. 21 D. Rs. 20

SOL. C
5.If the value of an item depreciate 10% annually what will be its
value in 2 years if present value is Rs.3500.
A. Rs. 2350 B. Rs. 2835 C. Rs. 3480 D. Rs. 3775

SOL. B

6.By selling an article for Rs 20.80 a dealer makes a profit of 30%.

By how much should be increase his selling price so as to make a
profit of 40%?
A. Rs. 1.5 B. Rs. 1.6 C. Rs. 1.3 D. Rs. 1.4

SOL. B
7. 100 oranges are bought at the rate of Rs. 350 and sold at the
rate of Rs. 48 per dozen. The percentage of profit or loss is :
A. 14 2/7 % gains B. 14 2/7% loss
C. 15 % gains D.15 % loss
SOL.A

8. A man sells two flats at the rate of Rs. 1.995 lakhs each. On one
he gains 5% and on the other, he loses 5%. His gain or loss
percent in the whole transaction is :
A. 0.25 % loss B. 0.25 % gains
C. 2.5 % loss D. 3.5 % gains
SOL. A
9. The profit earned by selling an article for Rs. 900 is double the
loss incurred when the same article is sold for Rs. 450. At what
price should the article be sold to make 25% profit?
A. Rs. 750 B.Rs.700 C. Rs. 900 D. Rs. 600

SOL. A

10. A dishonest dealer uses a scale of 90 cm instead of a meter

scale and claims to sell at cost price. His Profit is :
B. 9 % B.10 % C. 11 % D. None of these

SOL. D
11. A man gains 20% by selling an article for a certain price. If he
sells it at double the price, the percentage of profit will be :
A. 40 % B. 140 % C. 80 % D. 150 %
SOL.B

12.An article when sold for Rs. 200 fetches 25 percent profit. What
would be the percentage profit/loss if 6 such articles are sold for
Rs. 1056?
B. 10% loss B. 10% profit C. 5% loss D. 5% profit
SOL. B
13. A man sells a horse for Rs.600 gaining there by 1/5 th of the
selling price. At what price would he have sold it to lose 1/4 th of
the then selling price?
A. Rs.384 B. Rs.350 C. Rs.375
D. Rs.348 E. Rs.400
SOL. A

14. A shopkeeper earns a profit of 12% on selling a book at 10%

discount on the printed price. The ratio of the cost price and the
printed price of the book is:
A. 45 : 56 B. 50 : 61 C. 99 : 125
D. 36 : 79 E. 63 : 92
SOL.A
15. A trader had 6 quintals of rice. He sold a part of it at 7%
profit and the rest at 17% profit, so that he made a total profit of
11%. How much rice did he sell at 17% profit?

A. 200 kg B. 220 kg C. 240 kg D. 260 kg

E. None of these

SOL. C
16. Paresh purchased an I-pod for Rs. 7500 and sold it at the gain
of 24%. From that amount he purchased another I-pod and sold it
at the loss of 20%. What is his overall gain/loss?

A. Loss of Rs. 100 B. Gain of Rs. 60

C. Loss of Rs. 60 D. Neither gain nor loss
E. Gain of Rs. 100

SOL.C
17. A person sold a scooter at a profit of 10%. If he had sold it for
Rs. 3000 more, he would have gained 20%. Find the CP of
scooter?
A. Rs. 12000 B. Rs. 14000 C. Rs. 20000 D. Rs. 23000
E. Rs. 30000

SOL. E

18 .A dealer buys an article marked at Rs. 25000 with 20% and

5% off. He spends Rs. 2000 on its repair and sells it for Rs. 25000.
What is his gain or loss per cent?
A. 21% loss B. 10% loss C. 19% gain D. 27% gain
E. 29% gain
SOL. C
19. A trader earns a profit of 20% by selling a basket
containing 80 mangoes whose cost is Rs. 240 but he gives
one-fourth of it to another trader at cost price and sells the
remaining mangoes. In order to earn the same profit, at
what price must he sell each mango?

A. Rs. 2 B. Rs. 4 C. Rs. 6 D. Rs. 7 E. Rs. 10

SOL. B
20.Rohit bought paper sheets for Rs 7200 and spent Rs
200 on transport. Paying Rs 600, he had 330 boxes made,
which he sold at Rs 28 each. His profit percentage is ?

A. 15.5 B.60 C.40 . D .35

E. None of these

SOL.A
21. By selling 45 lemons for Rs 40, a man loses 20 %. How
many should he sell for Rs 24 to gain. 20 % in the transaction ?

A.16 B .20 C.18 D .22 E. None of these

SOL. C
22. Ram purchased 120 reams of paper at Rs 80 per ream.
He spent Rs 280 on transportation, paid octroi at the rate of
40 paisa per ream and paid Rs 72 to the coolie. If he wants
to have a gain of 8 %, what must be the selling price per
ream?

A.90 B.89 C.87.48 D.86

E .None of these

SOL.A
23. A bought a radio set and spent Rs 110 on its repairs. He
then sold it to B at 20% profit, B sold it to C at a loss’ of 10 %
and C sold it for Rs 1188 at a profit of 10 %. What is the
amount for which A bought the radio set?

A.Rs 850 B.Rs 930 C.Rs 890 D.Rs 950

E. None of these

SOL. C
24. A merchant sells his two cars – one at 15% loss and
another at 12% profit. If the cost prices of the two cars are in
the ratio of 1:2, what is his percent profit or loss?

A. 3% profit B. 2% loss
C. 2% profit D. 1.2%loss
E. None of these

SOL.A
25. A shopkeeper labeled the price of his articles so as to earn a
profit of 30% on the cost price. He then sold the articles by
offering a discount of 10% on the labeled price. What is the
actual percent profit earned in the deal?

A.18% B.15% C. 20% D. Cannot be determined

E. None of these

SOL. E
26. A shopkeeper sold a TV set for Rs. 17,940 with a
discount of 8% and gained 19.6%. If no discount is
allowed, then what will be his gain per cent?

A. 25% B. 26.4% C. 24.8% D. 30%

E. None of these

SOL.D
27. By selling an article at 80% of its marked price, a merchant
makes a loss of 12% what will be the per cent profit or loss
made by the merchant if he sells the article at 95% of its
marked price?

A. 5.5% profit B. 1% loss C. 5% profit D. 4.5 profit

E. None of these

SOL. D
28. Even after reducing the marked price of a transistor by
Rs. 32, a shopkeeper makes a profit of 15%. If the cost price
be Rs. 320, what percentage of profit would he have made
if he had sold the transistor at the marked price?

A. 25% B. 20% C. 10% D. 15%

E. None of these

SOL. A