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Profit and Loss

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12 views17 pages

Profit and Loss

hope it helps guys

Uploaded by

merryjancorda12
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PROFIT

& LOSS
By Group 7:
• Honey Lyn Lumajin Creig Seven Aleman
• Januz Nacional Imee Jim Dogoldogol
• Angelie Olivares Alaica Borres
• Jeah Aguilar Jamela Lomugdang
• Apple Dino Julianna Magcanam
Learning Objectives:
 Differentiate Profit from Loss

 Determine how to get a profit and a loss in business


transactions.

 Solve simple problems related to situations arising in


everyday life involving profit and loss.
Terms to Remember;
Profit
 It is the amount left from the revenue (or sales) after all costs (or
expenses) had been deducted.
 It is defined as a gain in business.
Loss
 It is what occurred when the cost and expenses exceed the revenue or
sales.
Selling Price
 Is the amount at which the product is to be sold.
Cost Price
 Is the total cost involved in selling a product. This involves purchase price
(fixed cost) and all other expenses (variables cost) that are incurred before a
product is sold.
Importance of profit
and loss statement
A profit and loss statement (P&L), or income statement or
statement of operations, is a financial report that provides a
summary of a company’s revenues, expenses, and profits/losses
over a given period of time. The P&L statement shows a company’s
ability to generate sales, manage expenses, and create profits. It is
prepared based on accounting principles that include revenue
recognition, matching, and accruals, which makes it different from
the cash flow statement.
Formula:
Profit / Loss = Revenue – Cost
Note: The result is a profit if it is positive and loss if it is
negative.

Profit percent / Loss percent =

Note: The percent is always taken with the respect to the cost
Examples
 Alexa bought a bag for ₱800. She spent ₱50 for transportation in
going the store. For the following day she sold the bag for ₱1000.
Determine how much her profit and how much is the profit percent.

Given:
Cost of Sales: Php800
Transportation Expense: Php50
Selling Price: Php1000
Expenses: 800 + 50 = 850

P/L = Revenue – Cost


= 1000 – 850
Profit = 150
Given:
Cost: Php850 Profit: 150
Sales: Php1000

Profit
Profit % = x 100
Cost

= 150 x 100
850

= 0.1765 x 100
= 17.65%
 Janine bought two digital cameras at ₱15,490 each. She sold one
of the cameras to her friend at ₱13,500, while the other one was sold
to his neighbor at ₱16,200. How much is Nicole’s profit or loss and
how much is her profit or loss percent?

Given:
Cost = 15,490
= 2 (15,490) = 30, 980

Selling Price = 13,500 + 16,200 = 29,700

P/L = Revenue – Cost


= 29,700 – 30,980
Loss = - 1280
Given:
Cost: 30,980
Selling Price: 13,500 + 16,200 = 29,700
Loss = - 1280

Loss
Loss % = x 100
Cost

= - 1280 x 100
30,980

= 4.13%
Formula for Selling Price:
If there is a profit, the formula is

Selling Price = Cost Price x (1 + % profit)

If there is a loss, the formula is

Selling Price = Cost Price x (1 - % loss)


Examples
 A dealer bought a car for ₱720,000. How much must he resell the car to be
assured of a 20% profit?

Given:
Cost: Php720,000
Profit %: 20%
SP = Cost x (1 + % profit)
= 720, 000 x (1 + 0.20)
= 720, 000 x (1.20)
= 864,000

Selling Price = 864,000


 Shyra bought a cellphone for Php30,000 and sold it for Php23,400.
What is the % loss?

Given:
Cost: Php30,000
Selling Price: Php23,400 P/L = Revenue – Cost
= 23,400 – 30,000 = - 6,600
Loss = - 6,600

Loss
Loss % = x 100
Cost

= - 6,600 x 100
30,000

Loss % = 22%
Let’s
Explore
your
Knowledge!
Answer This!
 Identify what Terms is given

1.) It is an amount at which the product is to be sold.

2.) Occurred when the cost and expenses exceed the revenue or
sales.

3.) The amount left from the revenue after all costs had been
deducted.

4.) Total cost involved in selling a product.


 Solve the Following Problem

5-7.) Lourie bought a condominium unit for ₱5,150,000 and sold


it for ₱6,900,600. How much was the % profit?

8-10.) Daniella is engaged in a buy and sell business of perfumes.


She bought 10 boxes of perfumes. Each box costs Php12,000 and
contains a dozen of perfume bottles. She is planning to sell one
perfume bottle at Php1,500. What is her expected profit on the
10 boxes of perfume? And how much is the percent profit?

Note: Send your answers to Honey Lyn Lumajin


Thank You
Everyone!
Janine bought two digital cameras at ₱15,490 each. She sold one of
the cameras to her friend at ₱13,500, while the other one was sold
to his neighbor at ₱16,200. How much is Nicole’s profit or loss and
how much is her profit or loss percent?

Shyra bought a cellphone for Php30,000 and sold it for Php23,400. What
is the % loss?

 Lourie bought a condominium unit for ₱5,150,000 and sold it for


₱6,900,600. How much was the % profit?

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