Profit & Loss Concepts and FormulasPoints to remember:1) Cost Price: It is the price at which a product is purchased. It is commonly abbreviated as C.P. 2) Selling Price: It is the price at which a product is sold. It is commonly abbreviated as S.P. 3) Profit or gain: If the selling price of a product is more than the cost price, there will be profit in the deal. Therefore, Profit or Gain = S.P.  C.P. 4) Loss: If the selling price of a product is less than the cost price, the seller will incur a loss. Therefore, Loss = C.P.  S.P. 5) Profit or Gain % =S.P. C.P ∗100→Profit ∗100 6) Loss % =C.P. S.P ∗100→Loss ∗100 7) If there is a profit or gain in the deal or transaction; 8) If there is a loss in the deal or transaction; Selling Price (S.P.) =(100  Loss %) ∗C.P. 100 And, the Cost Price (C.P.) =∗S.P. 9) If an article is sold at a profit of X%, the selling price would be equal to X% of cost price . 10) If an article is sold at a loss of X%, the selling price would be equal to (100X)% of cost price (100  X ∗C.P). 11) When a seller sells two similar items one at X% gain and another one at same (X %) loss, the seller always incurs a loss in the deal which is given by: Some quicker methods to solve the problems:1) If a seller claims that he is selling goods at cost price but uses false weight to earn profit; % Profit =(True Weight False Weight) ∗100False Weight Or,% Profit =∗100 2) If a seller sells a product at X% loss but uses weight Y instead of Z, the % Gain earned or % loss incurred is given by: = (100  X)Z100Y +ve sign will indicate profit and ve sign will indicate loss. 3) If a shopkeeper uses weight Y gm instead of 1 kg and incurs an X% loss on cost price, his actual gain or loss % is given by: = (100  X)100100Y +ve sign will indicate profit and ve sign will show the loss. 4) If a shopkeeper uses weight Y gm instead of 1 kg and earns a profit of X% on cost price, his actual gain or loss % is given by: = (100 + X)100100Y +ve sign will indicate profit and ve sign will indicate the loss. 5) If there are two successive profits of X% and Y% in a transaction, the resultant profit is given by: Resultant profit = (X + Y +XY)100 6) If there is a profit of X% and loss of Y% in a transaction, the resultant profit or loss is given by: Resultant profit or loss = X Y XY)100 +ve sign will indicate profit and ve sign will indicate the loss. 7) A seller sells a product at profit of X%. If he sells it for Rs. Z more, his profit would be Y%. In this case the Cost Price is given by: C.P. =8) If the cost price and selling price of a product are reduced by same amount (X), the cost price is given by: C.P. =(Initial profit % +Increase in profit %) ∗ X)Increase in profit % 9) If the cost price of P articles is equal to the selling price of Q articles, then profit % or loss % is given by: 10) If A sells a product to B at a gain or loss of P% and B sells it to C at a gain or loss of Q%, the final gain or loss is given by: (P+Q+PQ)100 +ve sign will indicate profit and ve sign will indicate the loss. 11) If a shopkeeper marks the products at P% above the cost price and gives the customer a discount of Q%, the final profit or loss % is given by = Aptitude Profit & Loss Test Paper 1 Aptitude Profit & Loss Test Paper 2 Aptitude Profit & Loss Test Paper 3 Aptitude Profit & Loss Test Paper 4 Aptitude Profit & Loss Test Paper 5
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