Online Test paper1 (Profit and Loss)
Number of questions : 20 | Time : 30 minutes Take Test |

Underneath points make you to understand about profit and loss.

Cost price is defined as price at which an article is purchased.

Selling price is defined as price at which an article is sold.

When an article is sold out at more price than cost price in that case You will get profit. For Profit case SP should always greater than CP.

When an article is sold out at less price than cost price in that case You will get loss. For Loss case SP should always less than CP.

Profit is denoted by ‘P’. Loss is denoted by ‘L’. Selling price denoted by ‘SP’. Cost Price is denoted by ‘CP’.

Profit = Selling Price – Cost Price

P = SP - CP

Loss = Cost Price – Selling Price

L = CP – SP

Profit % = {Profit / Cost price} * 100%

= (P/CP) * 100%

Loss % = {Loss / Cost price} * 100%

= (L / CP) * 100%

Selling Price (SP) = {(100 + Gain %) / 100} * CP

Selling Price (SP) = {(100 – Loss %) / 100} * CP

Cost Price (CP) = {100 / (100 + Gain %)} * SP

Cost Price (CP) = {100 / (100 - Loss %)} * SP

1. Profit or Loss is always depends on cost price but not on selling price.

2. If an article is sold at a certain gain ‘X’ then Selling Price = (100 + X) % of Cost Price

3. If an article is sold at a certain loss ‘X’ then Selling Price = (100 - X) % of Cost Price

Previous year solved Questions:

1. Selling price of an article is Rs. 2220 and the percent profit earned is 20%. What is the cost price of the article?

A) Rs. 1750

B) Rs. 1876

C) Rs. 1776

D) Rs. 1850

E) None of these

Ans: D

Solution: Given data, Selling Price (SP) = 2220, Profit percentage = 20%

Cost Price (CP) = {100 / (100 + Gain %)} * SP

=> CP = {100 / (120)} *2220 = 1850

2. Profit earned by selling an article for Rs. 1450 is same as the loss incurred by selling the article for Rs. 1280. What is the cost price of the article?

A) 1385

B) 1405

C) 1355

D) 1365

E) None of these

Ans: D

Solution: Assume Cost price = X

According to the given data, 1450 – X = X – 1280 => 1450 + 1280 = 2X

Therefore X = 1365