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PROFIT AND LOSS

Quantitative Aptitude For:
*Bank PO,SBI PO,IBPS PO Exams *Postal Sorting Assistant Exams *SSC Combined Graduate Level Exams *LIC AAO and All other competitive examinations

Akshay Almast

2013

Profit and Loss

PROFIT & LOSS Definitions: Cost Price: The price at which

an article is purchased is called the cost price or C.P. Selling Price: The price at which an article is sold is called the selling price or S.P. Marked (List) Price: The Price that is indicated or marked on the article is called marked price or M.P. Profit (Gain): If S.P. is greater than C.P., the seller is said to have a profit (gain). Loss: If S.P. is less than C.P., the seller is said to have a loss. Discount: It is reduction given on the Marked Price or List Price of an article.

12. If a trader professes to sell his

goods at Cost Price, but uses false weight, then Gain (Profit) Percent, =[
Error True Value (Error)

x 100]%

13. If a trade gets x% profit and

x% loss in selling two similar articles, then in over all transaction, there is always a loss which is

Loss %= ( )2
10

14. If an article is sold at a gain of

49%, then SP= 149% of CP.

15. If an article is sold at a loss of

49%, then SP= 51% of CP.
Mostly Asked Questions (Fully Solved)

Formulae:
1. Gain= (SP)-(CP) 2. Loss= (CP)-(SP) 3. Gain %= ( 4. Loss %= ( 5. SP= 6. SP= 7. CP= 8. CP=
Gain x 100 CP Loss x 100

CP 100+Gain %

100 (100Loss %) 100 100 (100+Gain %) 100 (100Loss %)

x CP x CP x SP x SP
D M.P.

Que.:- If the cost price of 12 pens is equal to the selling price of 8 pens, the gain percent is: Sol.:- Let C.P. of each pen be Rs.1. Then, C.P. of 8 pens= Rs.8 S.P. of 8 pens= Rs.12. Gain Gain%= ( x 100) = ( x 100) % 8 = 50%. Que.:- A shopkeeper purchased 70 kg of potatoes for Rs. 420 and sold the whole lot at the rate of Rs.6.50 per kg. What will be his gain percent? Sol.:- C.P. of 1kg potatoes, 420 = Rs. ( ) = Rs. 6.
70
2

C.P. 4

9. Discount= MP-SP 10. Discount%= ( 11. SP= (

100D% 100

x 100)

x MP)

Race Express/One-Step Towards Success

Profit and Loss

S.P. of 1kg potatoes= Rs. 6.50. Gain Gain%= ( x 100) =( =

C.P. 0.50 6

x 100) %

25 3

= 8 %.
3

Que.:- 100 oranges are bought at the rate of Rs.350 and sold at the rate of Rs.48 per dozen. The percentage of profit or loss is: 350 Sol.:- C.P. of 1 orange= Rs. ( ) 100 = Rs. 3.50. 48 S.P. of 1 orange= Rs. ( ) 12 = Rs. 4. Here, CP < SP Gain Gain%= ( x 100) =( =
C.P. 0.50 3.50 100 7

Que.:- Some articles were bought at 6 for Rs. 5 and sold at 5 for Rs. 6. Gain percent is: Sol.:- Suppose, number of articles bought= L.C.M. of 6 & 5= 30. 5 C.P. of 30 articles= Rs. ( x 30) 6 = Rs. 25. 6 S.P. of 30 articles= Rs. ( x 30) 5 = Rs. 36. Gain Gain%= ( x 100) = ( x 100) % 25 = 44%. Que.:- A fair price shopkeeper takes 10% profit on his goods. He lost 20% goods during theft. His loss percent is: Sol.:- Suppose he has 100 items. Let C.P. of each item be Rs.1. Total cost= Rs.100. No. of items left after theft= 80. S.P. of each item= Rs. 1.10 Total sale= Rs. (1.10 x 80) = Rs. 88. Hence, Loss%= (
Loss x 100 12 CP
C.P. 11

x 100) %
2 7

% or 14 %.

Que.:-A man gains 20% by selling an article for a certain price. If he sells it at double the price, the percentage of profit will be: Sol.:- Let C.P. =Rs. x. Then, S.P. = Rs. (120% of C.P.) = Rs. (120% of x) 6 = Rs.
5

=(

100

x 100) % = 12%.

New S.P. = Rs. (2 x

12

6 5

= Rs. 5 Profit= (SP-CP) 12 Profit= Rs. ( ) = Rs.

7 5 7 5

Profit% = ( x x 100) % 5 = 140%.

Race Express/One-Step Towards Success

Que.:- A trader marked the price of his commodity so as to include a profit of 25%. He allowed discount of 16% on the marked price. His actual profit was: Sol.:- Let C.P. be Rs. 100. Then, marked price= Rs. 125. S.P. = 84% of Rs. 125 84 = Rs. ( x 125)
100
3

Profit and Loss D

= Rs. 105. Profit%= (SP-CP) % = (105-100) % = 5%. Que.:- A shopkeeper sells 25 articles at Rs. 45 per article after giving 10% discount and earns 50% profit. If the discount is not given, the profit gained is: Sol.:- S.P. of 1 article= Rs. 45. Let marked price of each article be Rs. x. Then, S.P. = 90% of Rs. x 90 45 =
100

Discount%= (

=(

M.P. 11 110

x 100) x 100) %

= 10 %. Que.:- A trader marked his goods at 20% above the cost price. He sold half the stock at the marked price, one quarter at a discount of 20% on the marked price and the rest at a discount of 40% on the marked price. His total gain is: Sol.:-Let C.P. of whole stock=Rs. 100. Then, Marked Price of whole Stock= Rs. 120. M.P. of M.P. of
1 2 1 4

x= Rs. ( 90 = Rs. 50. 100 C.P. =

45 x 100

) x SP

stock= Rs. 60. stock= Rs. 30.

= Rs. ( x 45) 150 = Rs. 30. Gain Required Profit%= ( x 100) =( =

C.P. 20 30 200 3

(100+Gain %) 100

Total S.P. is = Rs. [60+(80% of 30)+(60% of 30)] = Rs. (60+24+18) = Rs. 102. Hence, Gain%= (S.P. C.P.) % = (102-100) % = 2%. Que.:- The marked price of a watch was Rs. 720. A man bought the same for Rs. 550.80 after getting two successive discounts, the first being 10%. What was the second discount rate? Sol.:- Let the 2nd discount rate be x %. Then,
(100-x) % of 90 % of 720= 550.80

x 100) %

%
2 3

= 66 %. Que.:- A trader marked the selling price of an article at 10% above the cost price. At the time of selling, he allows certain discount and suffers a loss of 1%. He allowed a discount of: Sol.:- Let C.P. =Rs. 100. Then, Marked Price= Rs. 110. S.P. = Rs. 99. Discount = (M.P.-S.P.) = Rs. (110-99) = Rs. 11.
Race Express/One-Step Towards Success

(100) 100

90 100

x 720= 550.80
4

Profit and Loss 55080 21 20 20

100 = (

9 x 72

) = 85

Gain= Rs. ( Gain%= (

) = Rs.

100 = 85 x = (100-85) = 15. 2nd discount rate= 15 %. Que.:- A fan is listed at Rs. 1500 and a discount of 20% is offered on the list price. What additional discount must be offered to the customer to bring the net price to Rs. 1104? Sol.:- S.P. after 1st discount, = Rs. (
80 100

20

x x 100) % = 5 %.

Que.:- A man buys an article for 10% less than its value and sells it for 10% more than its value. His gain or loss percent is: Sol.:- Let the article be worth Rs. x. C.P. = 90% of Rs. x = Rs. = Rs. Gain= Rs. ( = Rs. Gain%= (
9 10 11 10 11 10 9

S.P. = 110% of Rs. x Here, CP < SP

10

x 1500)

= Rs. 1200. Net S.P. = Rs. 1104. Discount on Rs. 1200= Rs. 96. Required discount= (M.P. x 100) % =(1200 x 100) % = 8 %. Que.:- A cloth merchant sold half of his cloth at 20% profit, half of the remaining at 20% loss and the rest was sold at the cost price. In the total transaction, his gain or loss will be: Sol.:- Let C.P. of whole be Rs. x. C.P. of C.P. of
1 2 1 4
96 D

5 Gain x 100 CP 10 5 9 2 9

=( x

x 100) %

= 22 % >20 %. Que.:- A man bought apples at the rate of 8 for Rs. 34 and sold them at the rate of 12 for Rs. 57. How many apples should be sold to earn a net profit of Rs. 45? Sol.:- C.P. of 1 apple= Rs. ( )
8 34

stock= Rs. stock= Rs.

2 4

= Rs. 4.25. S.P. of 1 apple= Rs. ( )

12 57

Total S.P., = Rs. [(120% of 2 ) + (80% of 4) + 4] = Rs. (

3 5

+ + ) = Rs.
5 4

21 20

Here, CP < SP
Race Express/One-Step Towards Success

= Rs. 4.75. Profit on each apple, = (S.P. C.P.) = (4.75 4.25)

5

Profit and Loss

= Rs. 0.50. No. of apples required= (0.50)= 90. Que.:- A man buys two dozen bananas at Rs. 16 per dozen. After selling 18 bananas at the rate of Rs. 12 per dozen, the shopkeeper reduced the rate to Rs. 4 per dozen. The percent loss is: Sol.:- C.P. = Rs. (16 x 2) = Rs. 32. S.P. = Rs. (12 x 1.5 + 4 x 0.5) = Rs. (18+2) = Rs. 20. Loss%= (
Loss x 100 CP 12 32
45

Que.:- A person incurs 5% loss by selling a watch for Rs. 1140. At what price should the watch be sold to earn 5% profit? Sol.:- Let new S.P. be Rs. x. Then,
(100-loss%):(1st S.P.) = (100+gain%):(2nd S.P.)

(100-5%):(1140)=(100+5%): x 95 : 1140 = 105 : x x=(

1140 x 105 95

) = 1260.

S.P. = Rs. 1260. Que.:- A man loses 10% by selling an article for Rs. 180. At what price should he sell it to gain 10%? Sol.:- Let new S.P. be Rs. x. Then,
(100-loss%):(1st S.P.) = (100+gain%):(2nd S.P.)

=(

x 100) % = 37.5 %.

Que.:- A man buys a cycle for Rs. 1400 and sells it at a loss of 15%. What is the S.P. of the cycle? Sol.:- S.P. = 85 % of C.P. = 85 % of Rs. 1400 = Rs. (
85 100

(100-10%):(180)=(100+10%):x 90:180=110: x x=(

180 x 110 90

) = 220.

SP = Rs. 220. Que.:- A tradesman sold an article at a loss of 20%. If the SP had been increased by Rs. 100, there would have been a gain of 5%. What was the cost price of the article? Sol.:- Let the C.P. be Rs. x. Then, (105% of x) - (80% of x)=100 25% of x = 100
25 100 4

x 1400)

= Rs. 1190. Que.:- When a plot is sold for Rs.18,700 the owner loses 15 %. At what price must the plot be sold in order to gain 15%? Sol.:- Let new S.P. be Rs. x. Then,
(100-loss%):(1st S.P.) = (100+gain%):(2nd S.P.)

= 100

(100-15%):(18,700)=(100+15%): x

85 : 18,700 = 115 : x x=(

18,700 x 115 85

= 100 x = 400. So, C.P. = Rs. 400.

6

) = 25,300.

S.P. = Rs. 25,300.

Race Express/One-Step Towards Success

Profit and Loss

Que.:- A man bought a horse and a carriage for Rs. 3000. He sold the horse at a gain of 20% and the carriage at a loss of 10%, thereby gaining 2% on the whole. Find the cost of the horse. Sol.:- Let the C.P. of the horse be Rs. x.
Then, C.P. of the carriage = Rs. (3000- x).

= Rs. 18.70 Let MP be Rs. x. Then, SP = 85% of x 18.70 =

85 100 18.70 x 100 85

x=(

= 22. MP = Rs. 22. Que.:- List price of an article at a showroom is Rs. 2000 and it is being sold at successive discounts of 20% and 10%. Its net selling price will be: Sol.:- S.P. = 90% of 80% of Rs. 2000 = Rs. (
90 100

20% of x 10% of (3000- x) = 2% of 3000

20 100 5

3000 10 3000 10

= 60 = 60

10 x 15000 + 5 x = 3000 15 x = 15000 + 3000 = 18000 x=

18000 15

= 1200.

80 100

x 2000)

Hence, C.P. of the horse = Rs. 1200. Que.:- On selling 17 balls at Rs. 720, there is a loss equal to the cost price of 5 balls. The cost price of a ball is: Sol.:- CP of 17 balls - SP of 17 balls = CP of 5 balls. CP of 17 balls - CP of 5 balls = SP of 17 balls. CP of 12 balls = SP of 17 balls = Rs. 720. CP of 1 ball = Rs. (
720 12

= Rs. 1440. Que.:- The price of an article is raised by 30% and then two successive discounts of 10% each are allowed. Ultimately, the price of the article is: Sol.:- Let the original price be Rs.
100. Then, marked price = Rs. 130. Final price = 90% of 90% of Rs. 130

= Rs. (

90

100

90 100

x 130)

) = Rs. 60.

= Rs. 105.30. Increase in price= (105.30-100)% = 5.3 %. Que.:- By selling an article at of

Que.:- A pair of articles was bought for Rs. 37.40 at a discount of 15%. What must be the marked price of each of the articles? Sol.:- SP of each article = Rs. (
37.40 2

the marked price, there is a loss of 25%. The ratio of the marked price and the cost price of the article is:
7

Race Express/One-Step Towards Success

Profit and Loss

Sol.:- Let cost price = Rs. 100. Then,

2 5

of (Marked Price) = 75
75 x 5 2 375 2

Sol.:- S.P. of 1 saree = Rs. 266. Let the labelled price of each saree be Rs. x. Then, x = Rs. (
266 95 95 100

Marked Price = Rs. ( = Rs. Required Ratio, =

375 2

= 266

x 100) = Rs. 280.

100 112

Now, S.P. = Rs. 280, profit = 12 %. C.P. of 1 saree = Rs. ( x 280) = Rs. 250. Que.:- An item when sold for Rs. 1,690 earned 30% profit on the cost price. Then the cost price is: Sol.:- Cost price =Rs. (
100 130

: 100

= 375 : 200 = 15 : 8. Que.:- A shopkeeper sells a badminton rackets, whose marked price is Rs. 30, at a discount of 15% and gives a shuttle cock costing Rs. 1.50 free with each racket. Even then he makes a profit of 20%. His cost price per racket is: Sol.:- Marked Price = Rs. 30. S.P. = Rs. [(
85 100

x 1,690)

= Rs. 1,300. Que.:- A dealer purchased a washing machine for Rs. 7,660. After allowing a discount of 12% on its marked price, he still gains 10%. Find the marked price of the washing machine. Sol.:- Cost price = Rs. 7,660. S.P. = 110% of Rs. 7,660 = Rs. (
110 100

x 30) - 1.50]

= Rs. (25.50 - 1.50) = Rs. 24. Let C.P. be Rs. x. Then, 120% of x = 24 x=(
24 120

x 100)

= Rs. 20. Que.:- A shopkeeper sold sarees at Rs. 266 each after giving 5% discount on labelled price. Had he not given the discount, he would have earned a profit of 12% on the cost price. What was the cost price of each saree?

x 7,660)

= Rs. 8,426. Let marked price be Rs. x. Then, S.P. = 88% of x 8,426 = ( x=(
88 100 8,426 x 100 88

x = Rs. 9,575. Marked Price = Rs. 9,575.

Race Express/One-Step Towards Success

Profit and Loss

Que.:- A dealer marks his goods 20% above cost price. He then allows some discount on it and marks a profit of 12%. The rate of discount is: Sol.:- Let Cost Price = Rs. 100. Then, M.P. = Rs. 120, S.P. = Rs. 112. Discount= (MP-SP) = Rs. (120-112) = Rs. 8. Discount% = (
D M.P. 8

Rs. 200 more, he would make a profit of 5%. The cost price of the article is: Sol.:- Let cost price be Rs. x. Then, SP = (105% of x) - (80% of x) 200 = 25% of x 200 =
25 100 200 x 100 25

x = Rs. (

) = Rs. 800.

x 100) x 100) %
2 3

=( =

120 20 3

% or 6 %.

Que.:- A trader marked his product 20% higher than his cost price and then gives 20% discount on the marked price. The profit or loss for selling the product is: Sol.:- Let Cost Price = Rs. 100. Then, Marked Price = Rs. 120. S.P. = (
100D% 100 10020% 100

Que.:- A man purchased an article and sold it to B at a profit of 25% and B sold it to C at a loss of 10% and C paid Rs. 675 for it. For how much did A purchase it (in Rs.)? Sol.:- 125% of 90% of A = Rs. 675
125 100 45 40

90 100

x A = 675

x A = 675
675 x 40 45

A=

= Rs. 600.

x MP) x 120)

=(

= Rs. 96. Here, CP > SP Loss = (CP-SP) = (100-96) = 4 Loss% = (

Loss x 100 CP 4 x 100 100

Que.:- A sells a bicycle to B at a profit of 20%. B sells it to C at a profit of 25%. If C pays Rs. 225 for it, the cost price of the bicycle for A is: Sol.:- 125% of 120% of A = Rs. 225
125 100 30 20

120 100

x A = 225

x A = 225
225 x 20 30

=(

)%

A=

= Rs. 150.

= 4 %. Que.:- A man sold an article at a loss of 20%. If he could sell it for

Race Express/One-Step Towards Success

Que.:- A fair price shopkeeper takes 10% profit on his goods.

Profit and Loss

He lost 20% goods during theft. His loss percent is: Sol.:- Suppose he has 100 items. Let C.P. of each item be Rs. 1. Total cost = Rs. 100. Number of items left after theft = 80. S.P. of each item = Rs. 1.10. Total sale = Rs. (1.10 x 80) = Rs. 88.
Hence,Loss%= (
12 100

Que.:- A dishonest dealer uses a scale of 90 cm instead of a metre scale and claims to sell at cost price. His profit is: Sol.:- Gain% = (
Gain x 100 CP 10 90

=(

x 100) %
1 9

= 11 %. Que.:- 300 bananas were purchased at Rs. 128 a hundred. What should be the selling price per dozen, if a profit of Rs.66 is to be made? Sol.:- Cost Price of 300 Bananas, =
128 100

x 100) %= 12%.

Que.:- At what percent above the cost price must a shopkeeper mark his goods so that he gains 20% even after giving a discount of 10% on the marked price? Sol.:- Let C.P. = Rs. 100. Then, S.P. = Rs. 120. Let marked price be Rs. x. Then, S.P. = 90% of x 120 =
90 100 120 x 100 90 1 3 1 3

x 300 = Rs. 384

Profit = Rs. 66 Given Selling Price of 300 Bananas, = 384 + 66 = Rs. 450 Selling Price per dozen, =
450 300

x 12 = Rs. 18.

x=(

) = 133

Marked Price = 33 % above CP. Que.:- A man sold 18 cots for Rs. 16,800, gaining thereby the cost price of 3 cots. The C.P. of a cot is: Sol.:- (SP of 18 cots)-(CP of 18 cots) = (CP of 3 cots) (CP of 21 cots) = (SP of 18 cots) = Rs. 16,800. (CP of 1 cot)= Rs. (
16,800 21

Que.:- A sells an article to B at a gain of 10%. B sells it to C at a gain of 7 %. C disposes of it at

a loss of 25%. If the prime cost to the manufacturer A was Rs. 3200,then find the price obtained by C. Sol.:- A buys an article for Rs. 3200 and sells it at a gain of 10%. Cost Price to B = Rs. (
3200 x 110 100 15

)= Rs. 800.

B sells it at a gain of Cost Price to C=Rs. (

2 3200 x 110 x107.5 (100 x 100)

%, )
10

Race Express/One-Step Towards Success

Profit and Loss 81 100 117 100

C sells it at a loss of 25 %, Price Obtained by C is = Rs. (

3200 x 110 x 107.5 x 75 (100 x 100 x 100)

+ 162 = x + 17% of x =

36 x = 16200 x = Rs. 450. Que.:- It costs Re. 1 to photocopy a sheet of paper. However, 2% discount is allowed on all photocopies done after first 1000 sheets. How much will it cost to copy 5000 sheets of paper? Sol.:- Total cost, =Rs. [1x1000+(100-2)% of 1x4000] =Rs. (1000+0.98 x 4000) =Rs. (1000+3920) =Rs. 4920. Que.:- If by selling 110 apples, the C.P. of 120 apples is realised, the gain percentage is: Sol.:-Let C.P. of each apple be Rs. 1. C.P. of 110 apples = Rs. 110 S.P. of 110 apples = Rs. 120 Gain % = (110 x 100) % = 9 11 %. Que.:- By selling 12 toffees for a rupee, a man loses 20%. How many for a rupee should he sell to get a gain of 20%? Sol.:- Let S.P. of 12 toffees be Rs. x. Then, 80 : 1 = 120 : x x=(
120 80
10 1

= Rs. (3200 x 1.1 x 1.075 x 0.75) = Rs. 2838. Que.:- A sold a tape-recorder to B for Rs. 4,860 at a loss of 19%. Again B sold it to C at a price that would give A, a profit of 17%. The gain of B is: Sol.:- Cost of tape-recorder paid by A = 4860 x
100 81

= Rs. 6000. Cost of tape-recorder paid by C = 6000 x

117 100

= Rs. 7020. Gain of B = Rs. (7020-4860) = Rs. 2160. Gain % = (

Gain x 100 CP 2160 x 100 4860

) )
4 9

=( =

400 9

% or 44 %.

Que.:- If the selling price of a product is increased by Rs. 162, then the businessman will make a profit of 17% instead of a loss of 19%. The cost price of the product is: Sol.:- Let the cost price be Rs. x. if loss is 19%, then the selling Price would have been, x - 19% of x, i.e.,
81 100

)= .
2 3 2

For Rs. , toffees sold = 12. For Rs. 1 , toffees sold, = (12 x ) = 8.
3
11

Race Express/One-Step Towards Success

Profit and Loss

Que.:- The cash difference between the selling prices of an article at a profit of 4% and 6% is Rs. 3. The ratio of the two selling prices is: Sol.:- Let C.P. of the article be Rs. x. Then, Required ratio, =
104% 106%

x = 60. Weight used = (1000 - 60) = 940 gms. Que.:- A shopkeeper cheats to the extent of 10% while buying as well as selling, by using false weights. His total gain is: Sol.:Rule: Gain % =
(100+ %)2 100 (100+10)2

104 106

52 53

= 52:53.

Que.:- Peter bought an item at 20% discount on its original price. He sold it with 40% increase on the price he bought it. The new sale price is by what percent more than the original price? Sol.:- Let the original price be Rs. 100. Then, C.P. = Rs. 80. S.P. = 140% of Rs. 80 = Rs. (
140 100

100

Gain %= [ =(

100 1210010000 100

100] % )% *****

= 21 %.

x 80)

= Rs. 112. Required Percentage, = (112 - 100) % = 12%. Que.:- A dishonest dealer professes to sell his goods at cost price. But he uses a false weight and thus gains 6

%.

For a kg, he uses a weight of: Sol.:- Let error = x gms. Then,
1000 100 1000

x 100 = 6 =
300 47

18 47

47 x = 3 (1000 - x) 50 x = 3000
12

Race Express/One-Step Towards Success