Profit and Loss

Terms related to Profit and Loss

  • Cost price (C.P): Price at which an item is purchased.
  • Selling price (S.P): Price at which an item is sold.
  • Profit: When the selling price is greater than the cost price, it is called profit.
  • Loss: When the selling price is less than the cost price, it is called as loss.
  • Profit or loss per cent: Profit or Loss after selling an item of Rs. 100(C.P).
  • Discount: Discount is the reduction in the market price.
  • Market Price: Retailer marks the price on a label and attaches it to the articles.

Profit & Loss Calculation

Profit Calculation

Profit or Gain = selling price (S.P) – cost price (C.P)

Example

S.P = 150, C.P = 20

Profit OR Gain = (150-120) = 30



Loss Calculation

Loss = Cost price(C.P) – Selling price(S.P)

Example

C.P = 100, S.P = 90

Loss = (100-90) = 10

Note: Profit or Loss per cent is always calculated on cost price(C.P).


Formulas to calculate Profit & Loss

(i) % of Profit = Profit x 100
 Cost price
(ii) % of Loss = Loss x 100
 Cost price

(iii) In case of profit:

    S.P =C.P   100 + % of profit
          100
    C.P =   S.P x 100
    100 + % of profit

(iv) In case of Loss:

    S.P =C.P   100 – % of Loss
          100
    C.P =   S.P x 100
    100 – % of Loss
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