Profit and Loss
Subject: Mathematics | Topic: Profit and Loss
For TLT, ECT, PST, JEST & All Competitive Exams
Every time something is bought and sold, there is either a Profit or a Loss. Understanding how to calculate these is essential for everyday business and is one of the most frequently tested topics in the Mathematics section of TLT, ECT, PST, and JEST exams.
Key Terms
- Cost Price (C.P.): The price at which an item is purchased.
- Selling Price (S.P.): The price at which an item is sold.
- Profit: When S.P. is greater than C.P.
- Loss: When S.P. is less than C.P.
Basic Formulas
| Situation | Formula |
|---|---|
| Profit | Profit = S.P. − C.P. |
| Loss | Loss = C.P. − S.P. |
| Profit Percentage | Profit % = (Profit / C.P.) × 100 |
| Loss Percentage | Loss % = (Loss / C.P.) × 100 |
| Selling Price (when Profit % known) | S.P. = C.P. × (100 + Profit%) / 100 |
| Selling Price (when Loss % known) | S.P. = C.P. × (100 − Loss%) / 100 |
Solved Examples
Example 1: Finding Profit
A shopkeeper buys a item for Rs. 200 and sells it for Rs. 250. Find the profit.
Solution: Profit = S.P. − C.P. = 250 − 200 = Rs. 50
Example 2: Finding Profit Percentage
Using the same example (C.P. = Rs. 200, Profit = Rs. 50), find the profit percentage.
Solution: Profit % = (50 / 200) × 100 = 25%
Example 3: Finding Loss
A trader buys an item for Rs. 500 and sells it for Rs. 450. Find the loss.
Solution: Loss = C.P. − S.P. = 500 − 450 = Rs. 50
Example 4: Finding Loss Percentage
Using the same example (C.P. = Rs. 500, Loss = Rs. 50), find the loss percentage.
Solution: Loss % = (50 / 500) × 100 = 10%
Example 5: Finding Selling Price from Profit %
An item costs Rs. 400 and is sold at a profit of 15%. Find the Selling Price.
Solution: S.P. = C.P. × (100 + Profit%) / 100 = 400 × 115 / 100 = Rs. 460
Why This Topic Matters
Profit and Loss builds directly on earlier topics like Percentage, making it an easy, high-scoring area once percentages are clear. It is one of the most consistently repeated word-problem topics in the Mathematics section of TLT, ECT, PST, and JEST exams.
Practice MCQs
1. What is the formula for Profit?
a) C.P. − S.P. b) S.P. − C.P. c) S.P. + C.P. d) S.P. / C.P.
2. A shopkeeper buys an item for Rs. 200 and sells it for Rs. 250. Find the profit.
a) Rs. 30 b) Rs. 40 c) Rs. 50 d) Rs. 60
3. What is the formula for Profit Percentage?
a) (Profit / S.P.) × 100 b) (Profit / C.P.) × 100 c) (C.P. / Profit) × 100 d) (S.P. / Profit) × 100
4. A trader buys an item for Rs. 500 and sells it for Rs. 450. Find the loss percentage.
a) 5% b) 8% c) 10% d) 12%
5. An item costs Rs. 400 and is sold at a profit of 15%. Find the Selling Price.
a) Rs. 415 b) Rs. 440 c) Rs. 460 d) Rs. 480
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