Jaspreet Kaur PowerPoint Presentation

Profit & Loss

Formula-

SP > CP --> Profit  => S.P. – C.P. = Profit SP < CP ---> Loss  => C.P. – S.P. = LossCharges such as transportation cost, labor cost, salary or wages paid,

installation charge etc. are called expenses and these has to be added to the C.P to get actual profit.

Profit% = Profit/C.P X 100Loss% = Loss/C.P X 100 Profit and Loss is always depended on Cost price only If you have 100% of cost price and you get 125% selling price it means you

have profit of 25%

Practice Questions-• Example 1: Dia bought rice bag rupees 500 per bag. Due to spoilage, she had to

sold them for rupees 450 per bag. Find the gain or loss%.• Solution: • Here, C.P = Rupees 500 per bag                S.P = Rupees 450 per bag                As S.P < C.P, Therefore Dia suffer a loss.               Loss = C.P – S.P = 500 – 450 = Rupees 50 per bag                Loss% = Loss/C.P X 100 = 50/150 X 100 = 33.33%

Example 2: Mr Ravi bought a washing machine for rupees 15,000 and sold it for rupees 17,000. Find his profit or loss percent.Solution: • Here, C.P = Rupees 15,000               S.P = Rupees 17,000              As S.P > C.P, therefore Ravi made a profit.               Profit = S.P – C.P = 17,000 – 15,000 = Rupees 2000               Profit % = Profit/C.P X 100 = 2,000/15,000 X 100 = 13.33% Example 3:A bag was sold at 90 with a loss of 25%. At what price it was purchased?Solution:• Selling price (S.P.) 90 is 25% less than C.P. From the above short cut, express selling price in terms of cost price as below: 90 = CP × (75/100) = ¾(C.P.) Therefore, C.P. = 90 × (4/3) = 120

Formula-

Marked Price, Selling Price and Discount: The price marked on an article is its marked price (MP) or list price. Discount is the rebate on marked price. Discount is the is the difference between marked price and selling price (SP) D= MP ― SP Discount percent is always computed over MP. i.e. D% = (D/MP) × 100%

Practice Questions-Example 1:• A shirt marked at 40 was sold at 35. What is discount percent?• Solution: Discount, d = 40 ― 35 = 5. Applying the above formula  d% = (d/MP) × 100%, the discount percentage is: d% = (5/40) × 100% = 12.5%

Example 2:• A traveler’s bag was marked at 120. It was sold after being discounted by 25%. What was

the selling price?• Solution:Amount of discount is d = 25 % (120) = (25/100) × 120 = 30Now, SP = MP – discount = 120 – 30 = 90Short-cut:We can as well apply the above short cut for calculation:Since SP is 25% decrease (discount is decrease) on MP, we can write:SP = (75/100) × 120 = 90

Example 3:• At what price should an object be marked to make a profit of 20% on its purchase price 80

after being discounted by 20%?• Solution:Here, CP = 80.SP = 20% increase (profit) on 80 (CP),Therefore, SP = (120/100) × 80 = 96Now, SP = 80% of MP, because of 20% discount on MP.Therefore, SP = (80/100) × MPi.e. 96 = (80/100) × MPMP = 96 × (100/80) = 120

MCQ-

• The ratio of the cost price to the selling price is 4:5 then calculate profit percentage.

a) 24%b) 25%c) 22%d) None of these

• A person incurs 5% loss by selling watch a Rs. 1140 what should be its watch to sale to gain 5% of profit?

a) Rs. 1260b) Rs.1212c) Rs.1213d) Rs.3231

• A book is sold for 27.50 with the profit of 10% . If it were sold for 25.75 what will be the profit or loss percentage?

a) If Profit 3%b) If loss 3%c) If Loss 4%d) If profit 4%

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