IBPS Preparation Questions & Answers Section Wise

Profit and Loss Formulas

When we purchase some item and then sell it, we make profit or loss some times it depends on the Cost Price and Selling Price of a particular item.

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

Cost Price is amount of money goes out from us when we purchase any article or item.

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

Selling Price is an amount of money came in when we sell an item or article.

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

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

5. Marked Price: When we purchase any item or article we see the marked price or listed price printed on the label.

6. Profit or Gain = Selling Price (S.P.) - Cost Price (C.P.)

Example: 30% Profit on an article i.e cost price Rs.100/- Selling Price Rs.130/-

7. Loss = Cost Price (C.P.) - Selling Price (S.P.)

Example: 30% Loss on an article i.e cost price Rs.100/- Selling Price Rs.70/-

Profit and Loss is always calculated on Cost Price

Gain%=(Gain∗100C.P.)Loss%=(Loss∗100C.P.)S.P.=(100+Gain%100×C.P.)S.P.=(100−Loss%100×C.P.)C.P.=(100100+Gain%×S.P.)C.P.=(100100−Loss%×S.P.)$\begin{array}{rl}& Gain\mathrm{\%}=\left(\frac{Gain\ast 100}{C.P.}\right)\\ & Loss\mathrm{\%}=\left(\frac{Loss\ast 100}{C.P.}\right)\\ & S.P.=(\frac{100+Gain\mathrm{\%}}{100}\times C.P.)\\ & S.P.=(\frac{100-Loss\mathrm{\%}}{100}\times C.P.)\\ & C.P.=(\frac{100}{100+Gain\mathrm{\%}}\times S.P.)\\ & C.P.=(\frac{100}{100-Loss\mathrm{\%}}\times S.P.)\end{array}$

8. 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:

(x10)2$\begin{array}{r}{\left(\frac{x}{10}\right)}^2\end{array}$

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

Gain%=[ErrorTrue value - Error×100]%$\begin{array}{r}Gain\mathrm{\%}=[\frac{Error}{\text{True value - Error}}\times 100]\mathrm{\%}\end{array}$

Profit and Loss Shortcut Methods

1. A person incurs a loss of 5% be selling a watch for Rs. 1140. At what price should the watch be sold to earn 5% profit?

1. Rs.1200
2. Rs.1230
3. Rs.1260
4. Rs.1290
5. None of these

Answer: C

Explanation:

Let the new S.P. be x, then.

(100 - loss%):(1st S.P.) = (100 + gain%):(2nd S.P.)

(95 ÷ 1140) = (105 ÷ x)

x = 1260

2. If the cost price of 12 bananas is equal to the selling price of 8 bananas, the gain percent is ?

1. 12%
2. 50%
3. 30%
4. 60%
5. None of these

Answer: B

Explanation:

We know we will need gain amount to get gain percent, right. So lets get gain first.

Let the cost price of 1 banana is Re 1
Cost of 8 bananas = Rs 8
Selling price of 8 bananas= 12
Gain = 12 - 8 = 4

Gain%=(GainCost∗100)%=(48∗100)%=50%$\begin{array}{r}Gain\mathrm{\%}=(\frac{Gain}{Cost}\ast 100)\mathrm{\%}\\ =(\frac{4}{8}\ast 100)\mathrm{\%}=50\mathrm{\%}\end{array}$

3. A shopkeeper fixes the marked price of an item 35% above its cost price. The percentage of discount allowed to gain 8% is?

1. 18%
2. 20%
3. 22%
4. 24%
5. None of these

Answer: B

Explanation:

Let the cost price = Rs.100/-

then, Marked price = Rs.135/-

Required gain = 8%,

So Selling price = Rs.108/-

Discount = 135 - 108 = 27

Discount% = (27/135)*100 = 20%

Profit and Loss Questions & Answers

IBPS Preparation Questions & Answers Section Wise