A Complete Guide on Quantitative Aptitude for Banking & Insurance Examinations

Chapter

04 Profit and Loss

Theory:
Cost Price (CP): The money paid by the shopkeeper to the manufacturer or whole -seller to buy goods is called the cost
price (cp) of the goods purchased by the shopkeeper.
Selling Price (SP): The price at which the shopkeeper sells the goods is called selling price (s.p) of the goods sold by
the shopkeeper to the customer.

p
Profit: If the selling price of an article is more than its cost price, then the dealer (or shopkeeper) makes a
profit (or gain)
i.e., Profit = SP – CP; SP > CP

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Loss: If the selling price of an article is less than its cost price, the dealer suffers a loss
i.e., Loss = CP – SP; CP > SP
Some Important Formulae:
(i) Profit = SP – CP
(ii) Loss = CP – SP
Profit

gr
(iii) Profit percentage = 100 %
CP
Loss
(iv) Loss percentage = 100 %
CP
(100 Profit%) CP (100 Loss%) CP
(v) S.P =

100 SP
100
100 SP
100
m
(vi) C.P =
100 Profit% 100 Loss%
(vii) SP = (100 + x)% of CP; when Profit = x% of CP
xa
(viii) SP = (100 – x)% of CP; when Loss = x% of CP

Example 1: A man purchases an item for Rs. 120 and he sells it at a 20 percent profit, find his selling price
100 Profit% 100 20 120
Sol. SP = CP = 120 120 Rs. 144
100 100 100
te

Note: Profit /Loss percentage is always calcualated on C.P. unless otherwise stated.

Example 2: Find the cost price of an article which is sold for Rs. 200 at a loss of 20%
100 100
Sol. CP = 200 = Rs. 250
ce

SP
100 Loss% 100 20
Concept 1:
MARK UP AND DISCOUNT
Marked Price: To avoid loss due to bargaining by the customer and to get profit over the cost price, the trader increases
the cost price. This increase is known as markup and the increased price (i.e., cp+markup) is called the
marked price or printed price or list price of the goods.
@

Marked Price = CP + markup

(%marked)×CP
Marked Price = CP + 100
Generally goods are sold at marked price, if there is no further discount, then in this case selling price
equals marked price.
Discount: Discount means reduction of marked price to sell at a lower rate or literally discount means concession.
Basically, it is calculated on the basis of marked price.
Selling price = Marked price – Discount
(%Discount)×MP
Selling price = MP –
100

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Example: If the cost price of an articale is Rs. 300 and the percent markup is 30%. What is the marked price?
30
Sol. MP = CP + (%markup on CP) = 300 + 100 × 300= Rs. 390
Concept 2:
Dishonest Dealer Case: If a trader professes to sell his goods at cost price, but uses false weights, then
Error True weight − False weight
% gain =  100 ⇒ %gain =  100
True value − Error False weight
Example: A shopkeeper sold an article at cost price but use the weight of 960 gm in place of 1 kg weight. Find his profit%?
True weight − False weight 1000 − 960 40 25 1
Sol. Profit% =  100 =  100 =  100 = =4 %
False weight 960 960 6 6

p
Concept 3:
Where two articles are sold at same price but one of them at a profit and another at a loss and the percentage profit is the

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same as the percentage loss, In this case there is always a loss.
2 2
 Common Profit or Loss%   %value 
Loss% =   =  10 
 10   
Example: Each of two car is sold for Rs. 1000. The first one is sold at 25% profit and the other one at 25% loss. What is the
percentage loss or gain in the deal?

gr
Sol. Total s.p =
100  1000
CP of 1st car =  Profit = 25%
125
= Rs. 800
100  1000
CP of 2nd car =
75

m
Loss = 25%

1
= Rs. 1333
3
xa
1
2133 − 2000
1 CP − SP 3
Total CP = Rs. 2133 ⇒ Loss% =  100 =  100 = 6.25%
3 CP 1
2133
3
or, Using Shortcut Formula
2 2
 %value   25 
te

Loss% =   =   = 6.25 %
 10   10 
Concept 4:
xy
When two successive discounts on an article are x% and y% resp. then net discount: (𝑥 + 𝑦 − 100) %
ce

Example: A shopkeeper given two sucessive discount of 50% and 50% find the real (equivalent) discount?
Sol. Let MP = Rs. 100
Cost after 1st discount of 50% = 100 – 50% of 100 = Rs. 50
Cost after 2nd discount of 50% = 50 – 50% of 50 = Rs. 25
Price after both discount = Rs. 25
@

100 − 25
% discount =  100 = 75%
100
or, Using Shortcut Formula
xy
% discount = x + y − [where x = 50%, y = 50%]
100
50  50
= 50 + 50 − = 100 – 25 = 75%
100

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Solved Examples

1. There is a profit of 20% on the cost price of an article. 5. A book vendor sold a book at a loss of 10%. Had he
Find the profit percent when calculated on selling sold it for Rs. 108 more, he would have earned a profit
price? of 10%. Find the cost of the book.
Sol. Let the cost price of an article be Rs. 100 Sol. Let the CP article = x
then, Profit = 20% of 100 = Rs. 20 𝑥(100−10) 90𝑥 9𝑥
SP = = 100 = 10 [Loss of10%]
Selling price = Cost price + profit 100
9𝑥 110𝑥
= 100 + 20 = Rs. 120 + 108 = [If vendor sold for Rs. 108 more]
10 100

p
Profit% when calculated on SP 110𝑥 9𝑥 11𝑥 9𝑥
20 100 100
− 10 = 108 10
− 10 = 108
= 120 × 100 = 6
2x = 1080 x = Rs. 540

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2. By selling a bicycle for Rs. 2850, a shopkeeper gains
6. A person bought some article at the rate of 5 per rupee
14%. If the profit is reduced to 8%, find the selling
and the same number at the rate of 4 per rupee. He
price of bicycle?
SP×100 2850×100 mixed both the types and sold at the rate of 9 for Rs. 2.
Sol. CP = =
100+Profit% 100+14 In this business he suffered a loss of Rs. 3. Find th total
2850×100
= 114
= Rs. 2500 no. of articles bought by him?
SP of article for 8% Profit Sol. Let the person buys 10 articles

gr
CP  ( 100 + Profit%) 2500  108 Total CP = Rs. (5 × 5 +
1 5×1 5
) = Rs. (1 + 4) = Rs. 4
9
SP = = 4
100 100 2 20
SP of 10 articles = 9 × 10 = Rs.
= 25 × 108 = Rs. 2700 9
 9 20   81 − 80  1
3. The selling price of 12 articles is equal to the cost price Loss = Rs.  −  =   = Rs.
of 15 articles. Find the gain percent?
Sol. Let the CP of 1 article = Rs. x
m  4 9   36 
1
36
If loss is Rs. 36, then number of articles = 10
Cost Price of 15 article = Rs. 15x If loss is Rs. 3, number of articles = 36 × 10 × 3 = 1080
Selling Price of 12 article = Rs. 15x
xa
15 7. A man buys a field of agricultural land for Rs. 360000.
SP of 1 article = Rs. x 1 1 2
12 He sell 3 rd rd sat a loss of 20% and that a gain of
3 5
15x 3x x
Gain = −x = = 25%. At what price must he sell the remaining field so
12 12 4
x as to make an overall profit of 10%?
Gain  100 4  100
te

110
Gain%= = = 25% Sol. SP of total agricultural field= Rs. (360000 × 100)
CP x
= Rs. 396000 [overall profit of 10%]
4. A fruit seller buys some fruits at the rate of 11 for Rs. 1
SP of 3 rd of the field
10 and the same number at the rate of 9 for Rs. 10. If
ce

1 80
all the fruits are sold for Rs. 1 each. Find the gain or =  360000  Loss of 20% ⇒ Rs. 96000
loss percent? 3 100
Sol. In these types of question, we have to take the LCM of 2
SP of th of the field
number of individual things. 5
Number of fruits of each type he bought 2 125
= LCM of 11 and 9 = 99 =  360000  [Gain of 25%] ⇒ Rs. 180000
@

5 100
Total number of fruits = 99 × 2 = 198 SP of the remaining field
10 10 = Rs. (396000 – 96000 – 180000) = Rs. 120000
CP of 198 fruits =  99 +  99
11 9
= 90 + 110 = Rs. 200 8. One trader calculates the prcentage of profit on the
SP = 198 × 1 = Rs. 198 buying price and another calculates on the selling
CP–SP 200−198
Loss% = CP × 100 = 200 × 100 price. When their selling price are the same, then
2 difference of their actual profit is Rs. 85 and both claim
= 200 × 100 = 1%
to have made 20% profit. What is the selling price of
each?
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Sol. For first trader, Sol. Let the labelled price of the article be Rs. x
Let the CP of the article of Rs. 100, SP = Rs. 120  100 − 20  4x
Cost Price = x   = Rs.
For second trader, SP of the article = Rs. 120  100  5
Gain = 20% [For both the traders]  100 + 30  13
Selling Price = x   = Rs. x
Let the CP be x  100  10
120 − x 20 13 4 13x − 8x x
 100 = 20 ⇒ 120 – x = 6 Profit = x− x = = [SP – CP]
120 5 10 5 10 2
⇒ 120 – x = 24 ⇒ x = 120 – 24 = Rs. 96 x
5 125
%Profit = 2  100 =  100 = = 62.5%
Gain = Rs. 24 [SP – CP] 4x 8 2
5

p
Difference of gain = 24 – 20 = Rs. 4
If the difference of gain be Rs. 4, then 12. A shopkeeper sold an article for Rs. 400 after giving
20% discount on the labelled price and made 20%
SP = Rs. 120

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profit on cost price. What was the percentage profit,
When the difference be Rs. 85, then had he not given the discount?
120 400  100
SP =  85 = Rs. 2550 Sol. Labelled Price = [Before discount of 20%]
4 80
1 1
= Rs. 500
9. If the sales tax be reduced from 3 2 % to 3 3 %. What Cost Price of article

gr
difference does it make to person who purchases an 400  100 1000
= = Rs. [20% profit on CP]
article whose marked price is Rs. 8400? 120 3
1 1 1000 1500 − 1000
Sol. Initial sales tax, = 3 2 % Final sales tax= 3 3 % 500 −
Profit% = 3  100 = 3  100
Difference in percentage of sales tax 1000 1000
1 1
= (3 2 − 3 3) %
1 1 1
m =
500
3
 100 = 50%
3

Req. diff. = 6 % × 8400 = 6 × 100 × 8400= Rs. 14 1000

13. A reduction of 20% in the price of mangoes enables a
xa
10. A man sells two cycle for Rs. 1710. The cost price of person to purchase 12 more for Rs. 15. Find the price
the first is equal to the selling price of the second. If the of 16 mangoes before reduction?
first is sold at 10% loss and the second at 25% gain, Sol. Let the price of 1 mango be x paise
Number of mangoes for
what is his total gain or loss?
1500
Sol. Rs. 15 = [Rs. 1 = 100 paise]
x
te

New price of one mango = ( 80% of x ) paise

80 4
=
 x = x paise
100 5
ce

 1500  5 
Number of mangoes for Rs. 15 =  
 4x 
Total CP = (CP of 1st Cycle) + (CP of 2nd Cycle) 7500 1500
− = 12 [Diff. as mentioned in the Ques.]
= 100 + 80 = Rs. 180 4x x
x = 31.25
Total SP = (SP of 1st Cycle) + (SP of 2nd Cycle) Cost of 16 mangoes before reduction
@

= 90 + 100 = Rs. 190 31.25  16

= = Rs. 5
CP : SP = 180 : 190 = 18 : 19 100
19−18
Profit = 19
× 1710 = Rs. 90 14. A garment company declared 15% discount for
wholesale buyers. Mr. Hemant bought garments from
11. Ashish bought an article with 20% discount on the the company for Rs. 8500 after getting discount. The
labelled price. He sold the article with 30% profit on fixed up selling price of garments in such a way that he
the labelled price. What was his percent profit on the earned a profit of 10% on original company price.
price he bought? What is the total selling price?

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8500  100 Sol. Total number of books = 5000

Sol. Original Company price = = Rs. 10000
100 − 15 he gives free book = 500
4
Let the total selling price be Rs. x. SP of Ist part = 3000  200  = Rs. 480000
Now, according to the question, 5
2
x − 10000 [20% Discount on rd of rest]
 100 = 10 [Profit of 10%] 3
10000
100x – 1000000 = 100000 ⇒ x = Rs. 11000 SP or IInd part = 1500 × 200 = Rs. 300000
1
Total selling price = Rs. 11000 [Price is MP of rd of the rest]
3
15. A publisher published 5000 books in 5 lakh rupees. If Total SP = 480000 + 300000 = Rs. 780000

p
2 80
he gives 500 books in free, rd of the rest he sell on Total SP after Commission =  780000
3 100
[20% Commission]

ou
1
20% discount and remaining rd on M.P. He also = Rs. 624000
3
Total CP = Rs. 5,00,000, Total SP = Rs. 6,24,000
gives 20% commission of the total selling. Find the
Net profit = 6,24,000 – 5,00,000 = 1,24,000
profit% of the publisher if market price of each book
124000
is Rs. 200? Profit% =  100 = 24.8%
500000

gr
1. A man buys an article for Rs. 27.50 and sells it for Rs. 8. A man sold two cows at Rs. 1995 each. On one he lost
28.60. Find the gain percent? 10% and on the other he gained 10%. What his gain or
(a) 4%
(d) 10%
(b) 3%
(e) None of these
(c) 5%
m loss percent?
(a) 4% (b) 2% (c) 0.5%
(d) 1% (e) None of these
2. If a radio is purchased for Rs. 490 and sold for Rs.
465.50. Find the loss%? 9. Two discounts of 40% and 20% equal to a single
xa
(a) 6% (b) 5% (c) 4% discount of?
(d) 3% (e) None of these (a) 48% (b) 53% (c) 52%
(d) 60% (e) None of these
3. Find SP when CP = Rs. 56.25 and Gain = 20%?
(a) Rs. 72 (b) Rs. 67.5 (c) Rs. 50 10. Amit purchased 13 chair of Rs. 115 each and sold all at
Rs. 1220. Then find the profit or Loss on the
te

(d) Rs. 75 (e) None of these

transaction
4. Find SP when CP = Rs. 80.40, loss = 5%? (a) Rs. 280 Loss (b) Rs. 275 Loss (c) Rs. 325 Profit
(a) Rs. 81 (b) Rs. 84.72 (c) Rs. 76.38 (d) Rs. 350 Profit (e) None of these
(d) Rs. 82.9 (e) None of these
11. Some articles were bought at 6 articles for Rs. 5 and
ce

5. Find CP when SP = Rs. 40.60, gain = 16%? sold at 5 articles for Rs. 6. Gain percent is:
(a) Rs. 35 (b) Rs. 50 (c) Rs. 75 1
(a) 30% (b) 33 3% (c) 35%
(d) Rs. 89 (e) None of these
(d) 44% (e) None of these
6. If the cost price is 96% of the selling price, then what 12. The cost price of 12 tables is equal to the selling price
is the profit percent?
@

of 16 tables. The loss percent is

(a) 5.72% (b) 3.72% (c) 8.92% (a) 15% (b) 20% (c) 25%
(d) 2.8% (e) None of these (d) 30% (e) None of these
7. A discount dealer professes to sell his goods at cost 13. A sells a bicycle to B at a profit of 20% and B sells it to
price but uses a weight of 960 gms instead of a Kg C at a profit of 25%. If C pays Rs. 1500, what did A pay
weight. Find his gain%? for it?
27 8 25
(a) % (b) 3 (c) % (a) Rs. 825 (b) Rs. 1000 (c) Rs. 1100
4 6
21 (d) Rs. 1125 (e) None of these
(d) 4
% (e) None of these

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