Profit and Loss – Concept for Aptitude Preparation
Definition:
Profit and Loss is a fundamental concept in mathematics and business that deals with calculating the gain or loss in a transaction. It helps in determining whether a deal is beneficial or not. This concept is widely used in competitive exams and real-life trade scenarios.
Key Terms:
- Cost Price (CP): The price at which an article is purchased.
- Selling Price (SP): The price at which the article is sold.
- Profit (Gain): When the selling price is higher than the cost price.
- Loss: When the selling price is lower than the cost price.
Basic Formulas:
- Profit: Profit = SP – CP (When SP > CP)
- Loss: Loss = CP – SP (When CP > SP)
- Profit Percentage: (Profit ÷ CP) × 100
- Loss Percentage: (Loss ÷ CP) × 100
- SP (when profit): SP = CP × (100 + Profit%) ÷ 100
- SP (when loss): SP = CP × (100 – Loss%) ÷ 100
- CP (when profit): CP = SP × 100 ÷ (100 + Profit%)
- CP (when loss): CP = SP × 100 ÷ (100 – Loss%)
Shortcut Tip:
Always compare SP and CP first. If SP is greater, there’s a profit; if SP is lesser, there’s a loss.
Profit & Loss – Type 1
Profit & Loss – Type 2
Profit & Loss – Type 3
Discount
Profit and Loss for Membership
Profit and Loss clear videos membership
| Term | Definition / Formula |
|---|---|
| Cost Price (CP) | The price at which an article is purchased. |
| Selling Price (SP) | The price at which an article is sold. |
| Profit | Profit = SP – CP (when SP > CP) |
| Loss | Loss = CP – SP (when CP > SP) |
| Profit % | Profit% = (Profit ÷ CP) × 100 |
| Loss % | Loss% = (Loss ÷ CP) × 100 |
| SP (when profit) | SP = CP × (100 + Profit%) ÷ 100 |
| SP (when loss) | SP = CP × (100 – Loss%) ÷ 100 |
| CP (when profit) | CP = SP × 100 ÷ (100 + Profit%) |
| CP (when loss) | CP = SP × 100 ÷ (100 – Loss%) |