Profit & Loss
Profit & Loss/ Profit & Loss for IB/ Profit & Loss for CDS/ Profit & Loss for IBPS PO/ Profit & Loss for IBPS Clerk/ Profit & Loss for RRB/ Profit & Loss for RBI
Definitions related to Profit & Loss
- Cost Price = CP : Price at which the product is bought.
- Selling Price = SP : Price at which the product is sold.
- Marked Price ( MP ) : Price displayed on the product. (labelled price, MRP, printed price etc.)
CP = Cost Price & SP = Selling Price
=> when SP > CP = Profit, seller makes profit.
P = SP – CP ; P% = ( P / CP ) x 100
=> when CP > SP = Loss, seller suffers a loss.
L = CP – SP ; L% = ( P / CP ) x 100
* Cost price is always fixed; hence, Loss & Profit are always calculated on Cost Price
Discounts = D : The concession given by the seller on the marked price ( MP ) of the product.
Discount = M P – S P
Discount %, D% = (Discount) / (M P) ×100
SHORT CUTS: For two successive profits or losses on an item, the formula for the resultant profit / loss % is :-
A+ B+ ( AB / 100)
Note: Both ‘A’ and ‘B’, here are profit / loss percentages. For profit use ‘+’ sign and for loss use ‘–’ sign.
If result is in + then, there is an overall profit, if it is in ‘–’ then there is an overall loss.
1. If two items, which have the same CP, are sold such that one is at a profit of X% whereas the other is at a loss of X%. We can say that in this case, there is neither loss nor profit.
2. However, if two items with the same SP, are sold such that one is at a profit of x% whereas the other is at a loss of x%.
it causes Loss, and is given by:
Overall Loss% = x*x / 100
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