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Profit and Loss Basics:
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
Gain = (S.P.) - (C.P.)
Loss = (C.P.) - (S.P.)
Loss or gain is always reckoned on C.P.
Gain Percentage: (Gain %) = (Gain x 100)/C.P.
Loss Percentage: (Loss %)= (Loss x 100)/C.P.
Selling Price: (S.P.) = (100 + Gain %)/100 x C.P
Selling Price: (S.P.) = (100 - Loss %)/100 x C.P.
Cost Price: (C.P.) = 100 / (100 + Gain %) x S.P.
Cost Price: (C.P.) = 100 / (100 - Loss %) x S.P.
If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.
If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.
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:Loss % = (Common Loss and Gain %) / 100 = X2/100
If a trader professes to sell his goods at cost price
but uses false weights, then,Gain % = Error /{ (True Value) - (Error) } x 100 %
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