## Profit and Loss

**Candidates preparing for upcoming exams** You will know how important and practice demanding topic Quant Section is in Banking Exams… keeping this need of yours in mind. **BankersAdda has brought an important topic Profit and Loss…**Now it is not difficult to solve any kind of problem related to this topic…Candidates are advised to read this article completely so that **This topic should become your strength and not your weakness.**..So what are you waiting for, keep reading the article…

## Profit and Loss

Profit and loss are terms that are used to find out whether a transaction is profitable or not. We also use the concept of profit and loss in our daily life. Mostly we use this concept to calculate loss or profit on a product. The price at which we buy a product is called cost price and the price at which a product is sold is called selling price. There is also a marked price which means the price which is printed on a product. So in this article, we are going to discuss profit and loss formulas, concepts/concepts, tricks, questions and examples.

## Profit & Loss: Bank Exams

Profit and Loss is one of the examiner’s favorite topics which is usually asked in banking exams. Profit and Loss questions are asked in Prelims as well as Mains exam with difference in difficulty level. Instead of attempting questions initially, clear your concepts/concepts once and then practice Profit and Loss questions. Most of the candidates make the mistake of jumping straight to short tricks instead of learning the main concepts so we will provide all the profit and loss formulas and also try to clear your concepts. Keep reading this article to know, see and understand the questions and examples of profit and loss.

## Profit and Loss: Basic Terms

Here we have given below some basic formulas of profit and loss which will help you to solve the questions quickly.

### Cost Price

The price at which an item is purchased is called its purchase price (CP).

### Selling Price

The price at which a commodity is sold is called its selling price (SP).

### Profit

When the selling price is more than the purchasing price, it is called profit.

### Loss

When the selling price is less than the purchasing price, it is called loss.

### Marked Price or List Price and Discount

Marked price is the price that is marked on the product or also called quoted price. This is the price at which the product is quoted or intended to be sold. However, the seller may decide to give a discount to the buyer and the actual selling price may differ from the face value. If there is no discount in the product then marked price is same as selling price.

The amount of discount given will always be calculated on the marked price. This can be expressed as a discount percentage

Discount Percent = ( Selling Price (SP) / Face value (MP) × 100

## Profit Loss: Formulas

**Profit =**Selling Price – Cost Price**loss =**Cost Price – Selling Price**Cost Price =**Selling Price (No Profit No Loss)**Profit percentage =**(Profit × 100)/(CP)**Loss percentage =**(Damage × 100)/(CP)

## Profit and Loss: Tricks

See, tricks are nothing but a way to reduce the steps to calculate the answer, only if you know the basics you can understand the logic behind the tricks. So we have provided some profit and loss tricks below which you can use while solving similar questions.

- Profit, P = SP – CP; SP>CP
- Loss, L = CP – SP; CP>SP
- P% = (P/CP) x 100
- L% = (L/CP) x 100
- SP = {(100 + P%)/100} x CP
- SP = {(100 – L%)/100} x CP
- CP = {100/(100 + P%)} x SP
- CP = {100/(100 – L%)} x SP
- Discount = MP – SP
- SP=MP-Discount
- When two different articles are sold at the same selling price getting a gain of x% on the first and loss of x% on the second, then the overall% loss in the transaction is given by (x/10)² %. (Note: In such questions there is always a loss.)
- A merchant uses faulty measures and sells his goods at gain/loss of x%. The overall % gain/loss(g) is given by (100+g)/(100+x)=(True measure)/(Faulty measure). (Note: If the merchant sells his goods at cost price, then x = 0.)
- A merchant uses y% less weight/length and sells his goods at gain/loss of x%. The overall % gain/loss is given by (((y+x)/(100-y))×100)%

## Profit & Loss: Dishonest Dealer Concept

Dishonest Dealers and faulty weights, Profit and Loss is an important topic which is generally asked in all competitive exams. In this subject, we face these types of problems in which the shopkeeper sells the goods at cost price but still, he makes profit on those goods. This can only be possible if he gives the customer a quantity less than that stated on the product. A dishonest businessman shows that he is selling the product at cost price in the welfare of the customer but in this he loses his weight.

For example, if the shopkeeper sells a 1 liter packet of milk at its cost price but he gives only 800 ml of milk in that packet. In this case he is giving 800 ml of milk to a customer and charging the customer the amount of 1000 ml. Hence, we can say that 800 ml is the cost price and 1000 ml is the selling price. Hence, by selling 800 ml milk, he is getting a profit of 200 ml milk.

Percentage Profit = ((Selling Price – Cost Price)/(Cost Price))×100

Percentage Profit = ((1000-800)/800)×100 = 25%

## Profit and Loss: Questions

**Q1. ****What will be the single discount equivalent to two consecutive discounts of 25% and 24%?**

(a) 46%

(b) 43%

(c) 40%

(d) 33%

(e) 49%

**Q2. ****I bought 16 pencils at Rs 9 per dozen and sold them all at Rs 12 per dozen. What is the total profit percentage in this transaction?**

**Q3. ****A seller marks an article 160% more than its cost price. After this he gives two consecutive discounts of 20% and 25% and still he gets 56% profit on it. If the marked price of the article is Rs 520, then find its selling price?**

(a) Rs 320

(b) Rs 312

(c) Rs 240

(d) Rs 324

(e) Rs 230

**Q4. ****A milkman buys some milk. If he sells it at Rs 5 per litre, he makes a loss of Rs 300, but when he sells it at Rs 6 per litre, he makes a profit of Rs 250. How much milk did he buy?**

(a) 550 liters

(b) 300 liters

(c) 250 liters

(d) 800 liters

(e) 650 liters

**Q5. ****A trader sells two articles for Rs 4,800, making neither total loss nor profit. If he sells one article at a profit of 20%, then at what percent loss is the other article sold?**

**Q6. ****How many kg of tea priced at Rs 25 per kg should be mixed with 30 kg of tea priced at Rs 30 per kg so that the mixed variety becomes worth Rs. 30 per kg should be 10% profit?**

(a) 30 kg

(b) 32 kg

(c) 36 kg

(d) 42 kg

(e) 34 kg

**Q7. ****A product is priced at Rs 9450 after receiving 10% discount which includes 5% tax on the selling price. Find the marked price (in rupees) of the product?**

(a) 8500

(b) 9000

(c) 10000

(d) 9500

(e) 10500

**Q8. ****Instead of selling an article at 10% profit, a shopkeeper marks the article 30% more than the cost price and gives a discount of 10%. In this process he gets Rs 56 more profit. Find the purchase price of the item.**

(a) Rs 400

(b) Rs 1000

(c) Rs 800

(d) Rs 600

(e) Rs 500

**Q9. ****A person purchases four bicycles at a discount of 20% on the marked price of each bicycle. If the sum of discount given and profit received on all 4 cycles is 2560, then find the difference between marked price and cost price of one cycle.**

(a) 520

(b) 640

(c) 1220

(d) 880

(e) 690

**Q10. ****Veer buys an article for Rs 480. He sold it at 12% loss and received some money and with that money he again buys an item and sells it at 25% profit. What percentage of profit did he get from this transaction?**

(a) 16%

(b) 12%

(c) 10%

(d) 14%

(e) 20%