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Profit

This document outlines key concepts and formulas for calculating profit and loss in business transactions. It defines cost price (CP) as the price an item is purchased for, and selling price (SP) as the price an item is sold for. It states that if SP is greater than CP there is a profit, and if SP is less than CP there is a loss. Several formulas are provided to calculate gain, loss, gain/loss percentage, and to determine SP or CP when other variables are known. The key formulas calculate gain as SP - CP, loss as CP - SP, and express gain/loss percentage as the gain or loss amount divided by the CP.

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45 views2 pages

Profit

This document outlines key concepts and formulas for calculating profit and loss in business transactions. It defines cost price (CP) as the price an item is purchased for, and selling price (SP) as the price an item is sold for. It states that if SP is greater than CP there is a profit, and if SP is less than CP there is a loss. Several formulas are provided to calculate gain, loss, gain/loss percentage, and to determine SP or CP when other variables are known. The key formulas calculate gain as SP - CP, loss as CP - SP, and express gain/loss percentage as the gain or loss amount divided by the CP.

Uploaded by

safsdf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MPORTANT 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

1.

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

2.

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

3.

Loss or gain is always reckoned on C.P.

4.

Gain Percentage: (Gain %)

Gain x 100
C.P.

Gain % =

5.

Loss Percentage: (Loss %)

Loss x 100
C.P.

Loss % =

6.

Selling Price: (S.P.)

(100 + Gain %)
SP =

7.

100

x C.P

Selling Price: (S.P.)

(100 - Loss %)
SP =

8.

100

x C.P.

Cost Price: (C.P.)

100
C.P. =

9.

Cost Price: (C.P.)

(100 + Gain %)

x S.P.

100
(100 - Loss %)

C.P. =

x S.P.

10.

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

11.

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

12.

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:

Common Loss and Gain %


Loss % =

13.

10

10

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

Error
Gain % =

(True Value) - (Error)

x 100
%.

Profit and loss formulas for calculating profit% and loss%:


I. Gain = (SP) - (CP)
II. Loss = (CP) - (SP)
III. Gain% = (gain / CP 100)%
IV. Loss % = (loss/ CP 100)%
V. To find SP when CP and gain% or loss% are given:
SP = [(100 + gain %) / 100] CP
SP = {(100 - loss%) /100} CP
VI. To find CP when SP and gain% or loss% are given:
CP = {100/(100 + gain%)} SP
CP = {100 /(100 - loss%)} SP

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