Profit and Loss

IMPORTANT FACTS

Cost Price:

The price, at which an article is purchased, is called its cost price, abbreviated as C.P.

Selling Price:

The price, at which an article is sold, is called its selling prices, abbreviated as S.P.

Profit or Gain:

If S.P. is greater than C.P., the seller is said to have a profit or gain.

Loss:

If S.P. is less than C.P., the seller is said to have incurred a loss.

IMPORTANT FORMULAE

Gain = (S.P.) - (C.P.)

Loss = (C.P.) - (S.P.)

Loss or gain is always reckoned on C.P.

Gain Percentage: (Gain %)

    Gain % =(Gain x 100/C.P).

Loss Percentage: (Loss %)

    Loss % =((Loss x 100)/C.P.)

Selling Price: (S.P.)

    SP =((100 + Gain %) /100x C.P)

Selling Price: (S.P.)

    SP =((100 - Loss %)/100x C.P).

Cost Price: (C.P.)

    C.P. =(100/(100 + Gain %)x S.P).
Cost Price: (C.P.)

    C.P. =(100/(100 - Loss %)x S.P).

If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.

If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.

When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:

    Loss % =(Common Loss and Gain %/10)2=(x/10)2 .

If a trader professes to sell his goods at cost price, but uses false weights, then

    Gain % =(Error/(True Value) - (Error)x 100) %.

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