Profit and Loss
Profit and Loss is a key topic in quantitative aptitude that deals with calculating gains, losses, cost price, selling price, and percentages. It is widely asked in banking, SSC, CMAT, and placement exams.
Fundamental Principles
Cost Price (CP)
The price at which an item is purchased.
Selling Price (SP)
The price at which an item is sold.
Profit
When SP > CP, Profit = SP − CP.
Loss
When CP > SP, Loss = CP − SP.
Profit Percentage
Profit% = (Profit / CP) × 100.
Loss Percentage
Loss% = (Loss / CP) × 100.
Essential Formulation Tips
- Always assume CP = 100 for percentage-based questions.
- Use direct formulas instead of long calculations.
- Check whether question is based on CP or SP.
- Convert percentage into fraction for faster solving.
Shortcut Execution Techniques
- Profit% = (SP − CP) / CP × 100.
- SP = CP × (100 + Profit%) / 100.
- SP = CP × (100 − Loss%) / 100.
- Successive discounts: a + b − (ab/100).
Contextual Inquiries (FAQs)
Q: What is the fastest way to solve profit and loss questions?
A:
Q: What are the most important topics in profit and loss?
A:
Example Breakdown: Basic Profit Example
Very common question.Profit = SP − CP = 600 − 500 = 100.
Profit% = (100 / 500) × 100 = 20%.
Final Answer: 20%.
Example Breakdown: Loss Example
Shortcut-based question.SP = CP × (100 − Loss%) / 100.
SP = 800 × 90/100 = 720.
Final Answer: Rs. 720.
Example Breakdown: Discount Example
Important exam concept.Discount = 20% of 1000 = 200.
SP = 1000 − 200 = 800.
Final Answer: Rs. 800.
Profit & Loss Practice Questions
Solve important profit and loss questions for banking, SSC, CMAT, and placement exams.
Q1. If CP = Rs. 400 and SP = Rs. 500, find profit%.
Q2. An item is sold at 20% profit for Rs. 600. Find CP.
Q3. Find SP if CP = Rs. 1000 and loss = 15%.