| Profit and Loss Online Practice Tests | ||
| Profit and Loss Quiz 1 | Profit and Loss Quiz 2 | Profit and Loss Quiz 3(Inactive) |
Profit and Loss Basic: Concept
The Profit and Loss (P&L) is used to determine the market price of a commodity and the profitability of a firm. Every product has a cost and a selling price. Based on these pricing, we could calculate the profit or loss for a specific product. The key words discussed here include cost price, fixed, variable, and semi-variable cost, selling price, marked price, list price, margin, & so on.
Cost Price: The amount paid for an item is called its cost price, abbreviated as C.P.
Selling Price: The amount it is sold for is called its selling price, abbreviated as S.P.
Profit or Gain: If the Selling Price is greater than the Cost Price, the seller is said to have a profit or gain.
Loss: If the Selling Price is less than the Cost Price, the seller is said to have incurred a loss.
Marked Price Formula (MP): This Price is labelled by shopkeepers to offer a discount to the customers.
Profit and Loss Important Formulas
| Profit and Loss Terms | Formulas |
| $$Discount$$ | $$Marked \ Price – Selling \ Price$$ |
| $$Discount \%$$ | $$ \frac{Discount}{Marked\ price}\times 100 $$ |
| $$Gain $$ | $$Selling \ Price – Cost \ price$$ |
| $$Gain \%$$ | $$ \frac{Gain}{Cost\ price} \times100$$ |
| $$Loss$$ | $$Cost \ price – Selling \ Price$$ |
| $$Loss\%$$ | $$ \frac{Loss}{Cost\ price} \times100$$ |
| $$Selling\ Price: (S.P.) (if S.P > C.P)$$ | $$(\frac{100+gain\%}{100})\times C.P$$ |
| $$Selling\ Price: (S.P.) (if S.P < C.P)$$ | $$(\frac{100+loss\%}{100})\times C.P$$ |
| $$Cost\ Price: (C.P.) (if S.P > C.P)$$ | $$(\frac{100}{100+gain\%})\times S.P$$ |
| $$Cost\ Price: (C.P.) (if S.P < C.P)$$ | $$(\frac{100}{100+Loss\%})\times S.P$$ |
| 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: | $$(\frac{x}{10})^2$$ |
|
If a trader professes to sell his goods at cost price, but uses false weights, then Gain% |
$$[\frac{error}{True\ value – error}\times 100]\%$$ |
|
If there are two successful profits, say x% and y%, then the net percentage profit equals to |
$$[x+y+(\frac{xy}{100})]$$ |
| If the profit is x%, and loss is y%, then the net percentage of profit or loss will be | $$[x-y-(\frac{xy}{100})]$$ |
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Sample Questions
Q1) A person buys a bicycle of Rs. 4600 and he went for repair. A selling price of an article is Rs. 5300 at 6% profit. Find the repairing cost.
a) Rs. 100
b) Rs. 300
c) Rs. 400
d) Rs. 200
Answer: C
Let the repairing cost be x,
Profit % = (SP – CP)/ CP × 100
6 = (SP/CP – 1) × 100
6/100 = (SP/CP – 1)
3/50 = (SP/CP – 1)
1 + 3/50 = SP/CP
53/50 = 5300/ (4600 + x)
1/50 = 100/ (4600 + x)
(4600 + x) = 100 × 50
(4600 + x) = 5000
x = 5000 – 4600
x = 400
Repairing cost is Rs. 400
Q2) A man purchase a table fan for Rs. 120/-. Find the selling price if he incurred a loss of 5%.
a) Rs. 114/-
b) Rs. 120/-
c) Rs. 130/-
d) Rs. 140/-
Answer: A
Loss% = (CP – SP)/CP × 100
5 = (CP – SP)/CP × 100
5/100 = 1 – SP/CP
1/20 = 1 – SP/120
1 – 1/20 = SP/120
19/20 = SP/120
SP = 114/-
Q3) Cost Price of a Book is Rs. 3000 at loss of 20%. Find the selling price.
a) Rs. 2500
b) Rs. 1200
c) Rs. 2000
d) Rs. 2400
Answer: D
Loss % = (CP – SP)/CP × 100
20 = (1 – SP/CP) × 100
20/100 = (1 – SP/CP)
1/5 = (1 – SP/CP)
1 – 1/5 = SP/CP
4/5 = SP/3000
SP = 2400
Q4) The cost price of textbook is Rs. 60 and selling price of the textbook is Rs. 90. Find the profit percent of the textbooks.
a) 40%
b) 30%
c) 50%
d) 20%
Answer: C
Profit % = (SP – CP)/ CP × 100
= (90 – 60)/ 60 × 100
= 30/60 × 100
= 100/2
= 50%
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Q5) A cost price of bike is Rs. 1200/- and repairing cost is Rs. 300/-. Selling price of bike is Rs. 2000/-. Find the profit percent.
a) 11.11%
b) 9.09%
c) 66.67%
d) 33.34%
Answer: D
CP = 1200 + 300 = Rs. 1500/-, SP = Rs. 2000/-
Profit Percent = (SP – CP)/ CP × 100
= (2000 – 1500)/ 1500 × 100
= 500/1500 × 100
= 100/3
= 33.34%
Q6) A selling price of a box is Rs. 2600/- at 30% profit. Find the cost price.
a) Rs. 1500/-
b) Rs. 1800/-
c) Rs. 2000/-
d) Rs. 2500/-
Answer: C
Profit % = (SP – CP)/ CP × 100
30 = (SP/ CP – 1) × 100
30/100 = (SP/ CP – 1)
3/10 = (SP/ CP – 1)
1 + 3/10 = SP/ CP
13/10 = SP/ CP
13/10 = 2600/CP
CP = 2000/-
Q7) Cost price of 120 gram gold is equal to selling price of 150 gram gold. Find the profit or loss percent.
a) 15%
b) 20%
c) 25%
d) 30%
Answer: B
According to the article,
120 × CP = 150 × SP
SP/ CP = 120/150 = 4/5
Loss% = (CP – SP)/ CP × 100
= (1 – SP/CP) × 100
= (1 – 4/5) × 100
= 100/5
= 20%
Q8) Difference between selling price at 5% profit and 8% loss is Rs. 104/-. Find the cost price.
a) Rs. 850/-
b) Rs. 900/-
c) Rs. 700/-
d) Rs. 800/-
Answer: D
According to the question,
105/100 × CP – 92/100 × CP = 104
105 × CP – 92 × CP = 10400
13 × CP = 10400
CP = 10400/13
CP = Rs. 800/-
These are some example problems on profit and loss, we hope you like it.
Profit and Loss FAQs
1. What is profit and loss in aptitude?
Profit and loss is a basic concept in quantitative aptitude that deals with the calculation of gain or loss in a transaction. It is widely used in SSC, Banking, Railway, and other competitive exams.
2. What is the formula for profit and loss?
The most important formulas are: Profit = Selling Price (SP) − Cost Price (CP) Loss = Cost Price (CP) − Selling Price (SP) Profit % = (Profit / CP) × 100 Loss % = (Loss / CP) × 100
3. How do you calculate profit percentage?
Profit percentage is calculated using this formula: Profit % = (Profit ÷ Cost Price) × 100 Example: If CP = 100 and SP = 120 Profit = 20 → Profit % = 20%
4. What is the trick to solve profit and loss questions quickly?
Some quick tricks include: Use percentage method instead of full calculation Assume CP = 100 for easier calculation Convert ratios into percentages Memorize common fraction-to-percentage values These tricks help solve questions faster in exams.
5. What is the difference between profit and gain?
There is no difference in meaning. Both “profit” and “gain” refer to the amount earned when the selling price is higher than the cost price.
6. What is the difference between loss and discount?
Loss occurs when SP < CP Discount is a reduction on the marked price (MP) Discount does not always mean loss, because profit can still exist after discount.
7. How important is profit and loss for competitive exams?
Profit and loss is a very important topic. It is frequently asked in: SSC exams Banking exams (IBPS, SBI) Railway exams Insurance exams Usually, 2–5 questions appear in exams.