Profit & Loss Basic Concepts, Questions, Formula By Arun Sir

Profit and Loss Basic Concepts

Profit and loss are the terms used to identify whether a deal is profitable or not. We use these terms very often in our daily lives. If the selling price is greater than the cost price, then the difference between the selling price and cost price is called profit. If the selling price is less than the cost price, then the difference between the cost price and the selling price is called loss. The price at which a product is purchased is called its cost price. The price at which a product is sold is called its selling price.

Profit(P)

The amount gained by selling a product with more than its cost price.

Loss(L)

The amount the seller incurs after selling the product less than its cost price, is mentioned as a loss.

Marked Price Formula (MP)

This is basically labelled by shopkeepers to offer a discount to the customers in such a way that,

Discount = Marked Price – Selling PriceAnd Discount Percentage = (Discount/Marked price) x 100

Profit and Loss Formulas

Now let us find profit formula and loss formula.

  • The profit or gain is equal to the selling price minus cost price.
  • Loss is equal to cost price minus selling price.
Profit or Gain = Selling price – Cost PriceLoss = Cost Price – Selling Price

The formula for the profit and loss percentage is:

Profit percentage = (Profit /Cost Price) x 100Loss percentage = (Loss / Cost price) x 100

Profit and Loss Tricks

You have learned until now how to calculate profit as well as loss and also the percentage of them. Now let us learn some tricks or formulas to solve maths problems based on gain and loss, starting from the general formulas.

  1. Profit, P = SP – CP; SP>CP
  2. Loss, L = CP – SP; CP>SP
  3. P% = (P/CP) x 100
  4. L% = (L/CP) x 100
  5. SP = {(100 + P%)/100} x CP
  6. SP = {(100 – L%)/100} x CP
  7. CP = {100/(100 + P%)} x SP
  8. CP = {100/(100 – L%)} x SP
  9. Discount = MP – SP
  10. SP = MP -Discount
  11. For false weight, profit percentage will be P% = (True weight – false weight/ false weight) x 100.
  12. When there are two successful profits say m% and n%, then the net percentage profit equals to (m+n+mn)/100
  13. When the profit is m% and loss is n%, then the net % profit or loss will be: (m-n-mn)/100
  14. If a product is sold at m% profit and then again sold at n% profit then the actual cost price of the product will be: CP = [100 x 100 x P/(100+m)(100+n)]. In case of loss, CP = [100 x 100 x P/(100-m)(100-n)]
  15. If P% and L% are equal then, P = L and %loss = P2/100

Practice Questions

The cost of a Microwave and a Purifier together is Rs. 22000. If by selling the Microwave at a profit of 15% and the Purifier at a loss of 12.5% a total profit of 5% is made, what is the cost price of the Microwave?

Rs. 16000

Rs. 14000

Rs. 8000

Rs. 10000

Rs. 13000

A shopkeeper has two Dish washers A and B. Dish washers A is sold at a profit of 18% and Dish washers B at a loss of 12% and there is no loss or no gain in the whole transaction. If the cost price of the Dish washers A is Rs. 6000, what is the amount of loss by selling the Dish washers B?

Rs. 1080

Rs. 1200

Rs. 1100

Rs. 1020

Rs. 950

The marked price of a blanket is 50% more than its cost price. Two successive discounts of 15% and 12% are given on the marked price. What is the profit or loss percent after selling at discount?

12%

13.5%

15%

12.2%

16.5%

A shopkeeper sells a book at 20% profit. Had he bought it for 12% less and sold it for Rs. 50 less, he would have earned 25% profit. What is the actual selling price of the book?

Rs. 500

Rs. 600

Rs. 640

Rs. 800

None of these

A dishonest shopkeeper sells hand sanitizer at cost price but he mixes water and earns %. Find the ratio of mixture and hand sanitizer in the mixture.6 : 53 : 27 : 65 : 4None of theseA man buys some masks at 5 masks in Rs. 12 and same number of masks at 5 masks in Rs. 15. He sold all of them at 5 masks in 15 rupee. What is his overall gain or loss percent?

%

%

%

%

None of these

By selling 108 PPE kit Anjana suffer a loss equal to the selling price of 12 PPE kit. What is the percentage of loss?15%20%12%10%8%If 12 kg of cotton price costing Rs. 60/kg is mixed with 30 kg of cotton of Rs. 50/kg and 18 kg of Rs. 70/kg and the mixture is sold at 25% profit. What is the selling price of the mixture?

Rs. 4350

Rs. 4820

Rs. 4550

Rs. 4400

None of these

A shopkeeper sold an almirah for Rs. 9720 with a discount of 10% and earns 8% profit. If no discount is given then what will be his profit percent?

30%

24%

25%

16%

20%

The cost price of a blanket is Rs. 660 more than the cost price of bedsheet. Blanket was sold at a profit of 30% and bedsheet was sold at a loss of 20%. If the ratio of selling prices of blanket and bedsheet is 13 : 5, what is the cost price of bedsheet?

Rs. 1100

Rs. 1200

Rs. 1320

Rs. 1500

None of these

The profit earned by selling chair for Rs. 1620 is equal to the loss incurred by selling the same chair for Rs. 1140. If the shopkeeper earns 25% profit, at what price should the chair be sold?

Rs. 1520

Rs. 1675

Rs. 1725

Rs. 1825

Rs. 1875

Mithali purchased a microphone at Rs. 5400 then fixed it at Rs. 600 and he paid its transport fee of Rs. 400. If she sold it at 40% profit, what is the selling price of the microphone?

Rs. 8960

Rs. 8690

Rs. 8780

Rs. 8850

None of these

By selling a saree a shopkeeper earns 150% of the cost price. If the cost price increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit?

90%

80%

125%

50%

100%

Sushant sold a sofa to Anjana at 30% loss, then Anjana sold it to Sanjana at 50% profit and finally Sanjana sold it back to Sushant at 20% profit. In this whole process what is the percentage loss or profit of Sushant?

60%

56%

70%

50%

None of these

A shopkeeper sells the book at the rate of Rs. 150 each and earns a commission of 12%. He also sells fountain pen at the rate of Rs. 90 each and earns a commission of 10%. If he sells 15 books and 20 fountain pens, what will be his total commission?

Rs. 540

Rs. 400

Rs. 450

Rs. 600

None of these

Mahika calculates her profit percentage on the selling price whereas Prakshi calculates on the cost price. The difference between the profits of them is Rs. 180 and the selling prices of both of them are same. If both of them get 25% profit, what is the selling price?

Rs. 3600

Rs. 3000

Rs. 2700

Rs. 4000

Rs. 4500

A person sells two shirts for Rs. 5400. The selling price of the second shirt is equals to the cost price of the first one. If the first one is sold at 50% profit and the second at 25% profit, what is the total profit by selling both the shirts?

Rs. 2000

Rs. 2100

Rs. 2400

Rs. 2250

None of these

A shopkeeper allows a discount of 24% on the marked price of a bottle. The shopkeeper charges sales tax of 15% on the discounted price. If the selling price of the bottle is Rs. 1748, what is the marked price of the bottle?

Rs. 1700

Rs. 2700

Rs. 2400

Rs. 2000

None of these

Mithul allowed a discount of 25% on marked price of Rs. 16,000 on an article and incurred a loss of 20%. If he wants to earn Rs. 600, what discount should he allow on the marked price?

10%

7.5%

3.5%

5%

2.5%

The marked price of an item is 40% above the cost price. He allowed two successive discounts of 25% and 12% to a customer. If he incurred the loss of Rs. 380, at what price did he sell the item to the customer?

Rs. 4720

Rs. 5250

Rs. 4870

Rs. 4620

None of these

Anant buys 1500 kg of Chole. He sells one-fifth of the chole at 6% profit, one-fourth at 5% profit and the remaining at 10% profit. If he had sold the whole lot at 8% profit, he would have gained Rs. 3 more. What is the cost price of the chole per kg?

Rs. 3

Rs. 4

Rs. 5

Rs. 2.5

None of these

A shopkeeper buys some quantity of rice. If he sells it at Rs. 32 per kg, suffers loss of Rs. 3600 but when he sells it at Rs. 45 per kg, he gains Rs. 2250. How much quantity of rice does he buy?

450 kg

320 kg

400 kg

540 kg

None of these

A shopkeeper sold his goods at 40% profit and along with this he used weights of 800 gm instead of 1 kg. What is his total profit percentage?

50%

80%

75%

60%

None of these

After allowing a discount of 40% on the marked price, a shopkeeper earns 25%. What is the ratio of the cost price and marked price respectively?

10 : 13

19 : 23

9 : 16

12 : 25

None of these

Manik purchased 40 dozen banana at Rs. 80 per dozen. He sold 25 dozens of it at 20% profit and the remaining at 30% profit. What is his overall profit percentage?

22.5%

20%

23.75%

27.20%

30%

Aashi buys two bags for a total cost of Rs. 1000. By selling one for 5/6 of its cost and the other for 6/5 of its cost, the total profit earn by her is Rs. 68. What is the cost of the higher priced bag?

Rs. 640

Rs. 540

Rs. 700

Rs. 720

None of these

A shopkeeper sold a teddy bear for Rs. 504. If the profit percentage is equals to the cost price, what is the cost price?

Rs. 250

Rs. 280

Rs. 150

Rs. 180

Rs. 200

A shopkeeper sells a wallet at 20% profit. If he sells it at double the price, what will be the percentage of profit?

80%

140%

150%

100%

40%

Aniket marks the price on a towel such a way that after given 10% discount, he earns a profit of 25%. If a customer is wrongly given a discount of 19% instead of 10%, then what will be the profit percentage of Aniket?

20%

15%

10%

12%

None of these

Mohit invests in mutual fund of two different companies A and B in the ratio of 5 : 3 and the percentage of return on A to B in the ratio of 4 : 1. What is total earning of Mohit, if the amount earned on A is Rs. 340 more than that of B?

Rs. 460

Rs. 400

Rs. 510

Rs. 480

None of these

A person sells two shirts for Rs. 5400. The selling price of the second shirt is equals to the cost price of the first one. If the first one is sold at 50% profit and the second at 25% profit, what is the total profit by selling both the shirts?

Rs. 2000  

Rs. 2100  

Rs. 2400  

Rs. 2250  

None of these

A shopkeeper allows a discount of 24% on the marked price of a bottle. The shopkeeper charges sales tax of 15% on the discounted price. If the selling price of the bottle is Rs. 1748, what is the marked price of the bottle?

Rs. 1700  

Rs. 2700  

Rs. 2400  

Rs. 2000  

None of these

Mithul allowed a discount of 25% on marked price of Rs. 16,000 on an article and incurred a loss of 20%. If he wants to earn Rs. 600, what discount should he allow on the marked price?

10%  

7.5%  

3.5%  

5%  

2.5%

The marked price of an item is 40% above the cost price. He allowed two successive discounts of 25% and 12% to a customer. If he incurred the loss of Rs. 380, at what price did he sell the item to the customer?

Rs. 4720  

Rs. 5250  

Rs. 4870  

Rs. 4620  

None of these

Anant buys 1500 kg of Chole. He sells one-fifth of the chole at 6% profit, one-fourth at 5% profit and the remaining at 10% profit. If he had sold the whole lot at 8% profit, he would have gained Rs. 3 more. What is the cost price of the chole per kg?

Rs. 3  

Rs. 4  

Rs. 5  

Rs. 2.5  

None of these

A shopkeeper buys some quantity of rice. If he sells it at Rs. 32 per kg, suffers loss of Rs. 3600 but when he sells it at Rs. 45 per kg, he gains Rs. 2250. How much quantity of rice does he buy?

450 kg  

320 kg  

400 kg  

540 kg  

None of these

A shopkeeper sold his goods at 40% profit and along with this he used weights of 800 gm instead of 1 kg. What is his total profit percentage?

50%  

80%  

75%  

60%  

None of these

After allowing a discount of 40% on the marked price, a shopkeeper earns 25%. What is the ratio of the cost price and marked price respectively?

10 : 13  

19 : 23  

9 : 16  

12 : 25  

None of these

Manik purchased 40 dozen banana at Rs. 80 per dozen. He sold 25 dozens of it at 20% profit and the remaining at 30% profit. What is his overall profit percentage?

22.5%  

20%  

23.75%  

27.20%  

30%

Aashi buys two bags for a total cost of Rs. 1000. By selling one for 5/6 of its cost and the other for 6/5 of its cost, the total profit earn by her is Rs. 68. What is the cost of the higher priced bag?

Rs. 640  

Rs. 540  

Rs. 700  

Rs. 720  

None of these

A shopkeeper sold a teddy bear for Rs. 504. If the profit percentage is equals to the cost price, what is the cost price?

Rs. 250  

Rs. 280  

Rs. 150  

Rs. 180  

Rs. 200

A shopkeeper sells a wallet at 20% profit. If he sells it at double the price, what will be the percentage of profit?

80%  

140%  

150%  

100%  

40%

Aniket marks the price on a towel such a way that after given 10% discount, he earns a profit of 25%. If a customer is wrongly given a discount of 19% instead of 10%, then what will be the profit percentage of Aniket?

20%  

15%  

10%  

12%  

None of these

Mohit invests in mutual fund of two different companies A and B in the ratio of 5 : 3 and the percentage of return on A to B in the ratio of 4 : 1. What is total earning of Mohit, if the amount earned on A is Rs. 340 more than that of B?

Rs. 460  

Rs. 400  

Rs. 510  

Rs. 480  

None of these  

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