UNIT I

1. Ratio and Proportion

Ratio:

●​ A ratio is a relationship between two numbers showing how many times the first
number contains the second.​

●​ Expressed as a : b or a/b, where a and b are two quantities of the same kind and b ≠
0.​

●​ Example: If a class has 10 boys and 5 girls, the ratio of boys to girls = 10 : 5 = 2 : 1.​

Types of Ratios:

●​ Simple Ratio: Comparison of two quantities (e.g., 3:4).​

●​ Compound Ratio: The product of two or more ratios.​

If A : B = a : b and C : D = c : d, then compound ratio = ac : bd.​

●​ Inverse Ratio: When the antecedent and consequent are interchanged.​

Proportion:

●​ An expression that states two ratios are equal.​

●​ If a : b = c : d, then a, b, c, d are in proportion.​

●​ Written as a : b :: c : d, where b and c are means, and a and d are extremes.​

Types of Proportion:

1.​ Direct Proportion: When two quantities increase or decrease in the same ratio.​

2.​ Inverse Proportion: When one quantity increases and the other decreases.​

3.​ Continued Proportion: If a : b = b : c, then b is called the mean proportional.​

Gaining and Sacrificing Ratio (in partnerships):

●​ Gaining Ratio: When a partner gains a part of another’s share in profit.​

 ●​ Sacrificing Ratio: When a partner gives up a share of profit to another (e.g., when a
new partner is admitted).​

UNIT I – Chapter 2: Percentage

Definition:

●​ A percentage is a fraction or ratio with a denominator of 100.​

●​ The symbol % denotes percent.​

For example, 45% means 45 out of 100 or 45100\frac{45}{100}10045​.​

Basic Formulae:

1.​ Percentage (%) = PartWhole×100\frac{\text{Part}}{\text{Whole}} \times

100WholePart​×100​

2.​ Finding the value from percentage:​

Value=Percentage×Total100\text{Value} = \frac{\text{Percentage} \times
\text{Total}}{100}Value=100Percentage×Total​
3.​ Increase or Decrease Percentage:​
Change %=DifferenceOriginal Value×100\text{Change \%} =
\frac{\text{Difference}}{\text{Original Value}} \times 100Change %=Original
ValueDifference​×100
4.​ Converting a fraction to percentage:​
Percentage=Fraction×100\text{Percentage} = \text{Fraction} \times
100Percentage=Fraction×100
5.​ Converting percentage to a decimal:​
Decimal=Percentage100\text{Decimal} =
\frac{\text{Percentage}}{100}Decimal=100Percentage​

Types of Percentage Calculations:

1. Successive Percentage Changes:

●​ When a value changes by x% and then y%, use:​

Net % change=x+y+xy100\text{Net \% change} = x + y + \frac{xy}{100}Net %
change=x+y+100xy​

2. Comparison Between Two Quantities:

 ●​ To find how much more or less one quantity is than another in percentage:​
Difference %=DifferenceBase Value×100\text{Difference \%} =
\frac{\text{Difference}}{\text{Base Value}} \times 100Difference %=Base
ValueDifference​×100

3. Effect of Percentage on Price or Quantity:

●​ If the price of a commodity increases by x%, the reduction in consumption required to

maintain same expenditure:​
Required Decrease %=x100+x×100\text{Required Decrease \%} = \frac{x}{100 + x}
\times 100Required Decrease %=100+xx​×100

Common Percentage Values:

Fraction Percentag
e

1/2 50%

1/3 33.33%

1/4 25%

1/5 20%

1/6 16.67%

1/8 12.5%

3/4 75%

2/5 40%

Applications:

●​ Business and commerce: Profit/loss %, discount %, tax %, commission %, etc.​

●​ Interest calculations.​

●​ Salary and wage changes.​

●​ Comparing quantities (growth rate, success rate, etc.).​

UNIT I – Chapter 3: Average

Definition:

●​ Average is a value that represents the central or typical value in a set of data.​

●​ It is calculated by dividing the sum of all values by the number of values.​

Basic Formula:
Average=Sum of ObservationsNumber of Observations\text{Average} = \frac{\text{Sum of
Observations}}{\text{Number of Observations}}Average=Number of ObservationsSum of
Observations​

Types of Averages:

1. Simple Average (Arithmetic Mean):

●​ Most commonly used.​

●​ Example:​

○​ Marks of 5 students: 60, 70, 75, 80, 65​

○​ Average = 60+70+75+80+655=3505=70\frac{60 + 70 + 75 + 80 + 65}{5} =

\frac{350}{5} = 70560+70+75+80+65​=5350​=70​

2. Weighted Average:

●​ Used when different values have different levels of importance (weights).​

●​ Formula:​
Weighted Average=∑(wi⋅xi)∑wi\text{Weighted Average} = \frac{\sum (w_i \cdot
x_i)}{\sum w_i}Weighted Average=∑wi​∑(wi​⋅xi​)​
Where:​

○​ xix_ixi​= value​

○​ wiw_iwi​= weight of each value​

Special Average Formulas:

1. Average Speed (for different distances):

Average Speed=Total DistanceTotal Time\text{Average Speed} = \frac{\text{Total
Distance}}{\text{Total Time}}Average Speed=Total TimeTotal Distance​
2. Average Speed (for same distance):

If a person covers the same distance at two different speeds, say aaa and bbb, then:

Average Speed=2aba+b\text{Average Speed} = \frac{2ab}{a + b}Average Speed=a+b2ab​

Important Tips:

●​ If the average of n items is A, then the total sum = A×nA \times nA×n​

●​ If a new value is added, the new average becomes:​

New Average=Old Sum+New Valuen+1\text{New Average} = \frac{\text{Old Sum} +
\text{New Value}}{n + 1}New Average=n+1Old Sum+New Value​
●​ If one value is removed:​
New Average=Old Sum−Removed Valuen−1\text{New Average} = \frac{\text{Old
Sum} - \text{Removed Value}}{n - 1}New Average=n−1Old Sum−Removed Value​

Applications of Averages:

●​ Business: Average sales, average profit.​

●​ Education: Average marks.​

●​ Statistics: Used to analyze data.​

●​ Finance: Average income, expenses, etc.​

UNIT II – Chapter 1: Simultaneous Equations

Definition:

●​ Simultaneous equations are a set of two or more algebraic equations involving the
same variables.​

●​ The solution of simultaneous equations is the set of variable values that satisfy all the
equations simultaneously.​

Standard Form (Two variables):

{a1x+b1y=c1a2x+b2y=c2\begin{cases} a_1x + b_1y = c_1 \\ a_2x + b_2y = c_2
\end{cases}{a1​x+b1​y=c1​a2​x+b2​y=c2​​

Where xxx and yyy are variables.

Methods to Solve Simultaneous Equations:

1. Substitution Method:

●​ Solve one equation for one variable in terms of the other.​

●​ Substitute this expression in the second equation to find the value of one variable.​

●​ Use this value to find the second variable.​

Example:

x+y=10x−y=2x + y = 10 \\ x - y = 2x+y=10x−y=2

From equation 1: x=10−yx = 10 - yx=10−y

Substitute in 2: (10−y)−y=2⇒10−2y=2⇒y=4(10 - y) - y = 2 \Rightarrow 10 - 2y = 2

\Rightarrow y = 4(10−y)−y=2⇒10−2y=2⇒y=4

Then, x=10−4=6x = 10 - 4 = 6x=10−4=6

2. Elimination Method:

●​ Multiply equations if necessary to make coefficients of one variable equal.​

●​ Add or subtract the equations to eliminate one variable.​

●​ Solve for the remaining variable, then substitute back.​

Example:

2x+3y=134x−3y=112x + 3y = 13 \\ 4x - 3y = 112x+3y=134x−3y=11

Add: (2x+3y)+(4x−3y)=13+11⇒6x=24⇒x=4(2x + 3y) + (4x - 3y) = 13 + 11 \Rightarrow 6x =

24 \Rightarrow x = 4(2x+3y)+(4x−3y)=13+11⇒6x=24⇒x=4

Substitute in first: 2(4)+3y=13⇒3y=5⇒y=532(4) + 3y = 13 \Rightarrow 3y = 5 \Rightarrow y

= \frac{5}{3}2(4)+3y=13⇒3y=5⇒y=35​

3. Cross-Multiplication Method:

Used for solving two equations in the form:

a1x+b1y=c1a2x+b2y=c2a_1x + b_1y = c_1 \\ a_2x + b_2y = c_2a1​x+b1​y=c1​a2​x+b2​y=c2​

Formula:
xb1c2−b2c1=yc1a2−c2a1=1a1b2−a2b1\frac{x}{b_1c_2 - b_2c_1} = \frac{y}{c_1a_2 -
c_2a_1} = \frac{1}{a_1b_2 - a_2b_1}b1​c2​−b2​c1​x​=c1​a2​−c2​a1​y​=a1​b2​−a2​b1​1​

Types of Solutions:
Type Condition Graphical Interpretation

Unique Solution a1a2≠b1b2\frac{a_1}{a_2} \ne Lines intersect at one

\frac{b_1}{b_2}a2​a1​​=b2​b1​​ point

No Solution a1a2=b1b2≠c1c2\frac{a_1}{a_2 Lines are parallel

} = \frac{b_1}{b_2} \ne
\frac{c_1}{c_2}a2​a1​​=b2​b1​​=c2​c
1​​

Infinite Solutions a1a2=b1b2=c1c2\frac{a_1}{a_2 Lines coincide

} = \frac{b_1}{b_2} =
\frac{c_1}{c_2}a2​a1​​=b2​b1​​=c2​c
1​​

Applications:

●​ Solving real-life business problems involving two variables.​

●​ Examples: Cost and revenue analysis, supply and demand, price and quantity.​

UNIT II – Chapter 2: Preparation of Invoice

Definition:

●​ An invoice is a commercial document issued by a seller to a buyer that lists the

products, quantities, and agreed prices for goods or services.​

●​ It also includes other charges such as tax, discount, freight, etc., and shows the total
amount payable.​

Key Components of an Invoice:

1.​ Invoice Number – A unique identification number.​

 2.​ Date – Date when the invoice is issued.​

3.​ Seller’s Details – Name, address, GSTIN, contact details.​

4.​ Buyer’s Details – Name, address, contact, GSTIN (if applicable).​

5.​ Description of Goods/Services:​

○​ Item name​

○​ Quantity​

○​ Rate per unit​

○​ Total amount​

6.​ Trade Discount – Reduction in price allowed by seller to buyer.​

7.​ Tax (GST) – Applied on taxable goods and services.​

○​ CGST (Central GST)​

○​ SGST (State GST)​

○​ IGST (Integrated GST, for interstate sales)​

8.​ Freight or Delivery Charges – Added if seller bears transportation cost.​

9.​ Total Invoice Amount – Amount payable after all additions and deductions.​

Important Concepts:

1. Trade Discount:

●​ A discount given on listed price (before tax).​

●​ Not shown in books of accounts separately.​

●​ Deducted before calculating tax.​

Example: If price = ₹1,000 and trade discount = 10%,​

Then discount = ₹100, and net price = ₹900

2. Tax Calculation (e.g., GST):

 ●​ Tax is charged after trade discount is deducted.​

Formula:

GST Amount=Tax Rate×Net Price after Discount\text{GST Amount} = \text{Tax Rate} \times
\text{Net Price after Discount}GST Amount=Tax Rate×Net Price after Discount

Sample Invoice Structure:

Item Qty Rate Total Trade Discount Tax % Tax Amt Final Amt

Pen 10 ₹20 ₹200 10% = ₹20 18% ₹32.4 ₹212.4

s

Steps to Prepare an Invoice:

1.​ Write seller and buyer details.​

2.​ List items with quantity and rate.​

3.​ Calculate total price.​

4.​ Deduct trade discount (if any).​

5.​ Apply GST or any other tax.​

6.​ Add freight or other charges (if applicable).​

7.​ Total the invoice.​

8.​ Add payment terms (like due date, mode of payment).​

Applications:

●​ Widely used in business transactions for billing.​

●​ Basis for recording in accounting books.​

●​ Important for calculating tax liabilities.​

UNIT III – Chapter 1: Determinants

Definition:

●​ A determinant is a scalar (numerical) value that can be computed from a square

matrix.​

●​ It is used to determine whether a matrix has an inverse, to solve systems of linear

equations, and in various areas of business mathematics.​

Notation:

●​ The determinant of a matrix AAA is denoted as |A| or det(A).​

Determinant of a 2×2 Matrix:

If

A=[abcd]A = \begin{bmatrix} a & b \\ c & d \end{bmatrix}A=[ac​bd​]

Then the determinant of A is:

∣A∣=ad−bc|A| = ad - bc∣A∣=ad−bc

Determinant of a 3×3 Matrix:

For matrix

A=[a1b1c1a2b2c2a3b3c3]A = \begin{bmatrix} a_1 & b_1 & c_1 \\ a_2 & b_2 & c_2 \\ a_3 &
b_3 & c_3 \end{bmatrix}A=​a1​a2​a3​​b1​b2​b3​​c1​c2​c3​​
∣A∣=a1(b2c3−b3c2)−b1(a2c3−a3c2)+c1(a2b3−a3b2)|A| = a_1(b_2c_3 - b_3c_2) -
b_1(a_2c_3 - a_3c_2) + c_1(a_2b_3 -
a_3b_2)∣A∣=a1​(b2​c3​−b3​c2​)−b1​(a2​c3​−a3​c2​)+c1​(a2​b3​−a3​b2​)

This is also called the rule of Sarrus or cofactor expansion method.

Properties of Determinants:

1.​ If two rows (or columns) are identical, the determinant = 0.​
 2.​ Swapping two rows or columns changes the sign of the determinant.​

3.​ Multiplying a row or column by a constant multiplies the determinant by that

constant.​

4.​ If all elements in a row or column are zero, the determinant is 0.​

5.​ Determinant of identity matrix = 1​

Application of Determinants:

1. Solving Simultaneous Equations using Cramer’s Rule:

For equations:

a1x+b1y=c1a2x+b2y=c2a_1x + b_1y = c_1 \\ a_2x + b_2y = c_2a1​x+b1​y=c1​a2​x+b2​y=c2​

Create 3 determinants:

●​ D=∣a1b1a2b2∣D = \begin{vmatrix} a_1 & b_1 \\ a_2 & b_2 \end{vmatrix}D=​a1​a2​​b1​b2​​

●​ Dx=∣c1b1c2b2∣D_x = \begin{vmatrix} c_1 & b_1 \\ c_2 & b_2

\end{vmatrix}Dx​=​c1​c2​​b1​b2​​

●​ Dy=∣a1c1a2c2∣D_y = \begin{vmatrix} a_1 & c_1 \\ a_2 & c_2

\end{vmatrix}Dy​=​a1​a2​​c1​c2​​

Then:

x=DxD,y=DyDx = \frac{D_x}{D}, \quad y = \frac{D_y}{D}x=DDx​​,y=DDy​​

Business Applications:

●​ Solving linear models in economics and commerce.​

●​ Used in matrix algebra to find inverse and rank.​

●​ Optimization problems and input-output analysis.​

UNIT III – Chapter 2: Matrix

Definition:

●​ A matrix is a rectangular arrangement of numbers, symbols, or expressions in rows

and columns.​

●​ It is used to represent and solve systems of equations, manage data, and perform
linear algebra operations.​

Notation:

●​ A matrix is usually represented by a capital letter like A, and its elements by small
letters with two subscripts.​

Example:

A=[a11a12a21a22]A = \begin{bmatrix} a_{11} & a_{12} \\ a_{21} & a_{22}

\end{bmatrix}A=[a11​a21​​a12​a22​​]

Order of a Matrix:

●​ A matrix with m rows and n columns is called an m × n matrix (read as "m by n").​

Types of Matrices:

1.​ Row Matrix – Only one row.​

[123]\begin{bmatrix} 1 & 2 & 3 \end{bmatrix}[1​2​3​]​

2.​ Column Matrix – Only one column.​

[456]\begin{bmatrix} 4 \\ 5 \\ 6 \end{bmatrix}​456​​

3.​ Square Matrix – Same number of rows and columns.​

2×2,3×3,2 \times 2, 3 \times 3,2×2,3×3, etc.​

4.​ Diagonal Matrix – All non-diagonal elements are zero.​

5.​ Scalar Matrix – A diagonal matrix with all diagonal elements equal.​

6.​ Identity Matrix (I) – A square matrix with 1s on the diagonal and 0s elsewhere.​

7.​ Zero or Null Matrix – All elements are zero.​

Matrix Operations:

1. Addition and Subtraction:

●​ Matrices of the same order can be added or subtracted.​

●​ Add corresponding elements:​

[1234]+[5678]=[681012]\begin{bmatrix} 1 & 2 \\ 3 & 4 \end{bmatrix} + \begin{bmatrix} 5 & 6 \\

7 & 8 \end{bmatrix} = \begin{bmatrix} 6 & 8 \\ 10 & 12 \end{bmatrix}[13​24​]+[57​68​]=[610​812​]

2. Scalar Multiplication:

●​ Multiply every element of the matrix by a scalar (number).​

3. Matrix Multiplication:

●​ Multiply row elements of first matrix with column elements of second matrix.​

●​ Matrix multiplication is not commutative, i.e., AB≠BAAB \ne BAAB=BA​

Transpose of a Matrix (Aᵗ):

●​ Interchange rows and columns.​

A=[1234]⇒AT=[1324]A = \begin{bmatrix} 1 & 2 \\ 3 & 4 \end{bmatrix} \Rightarrow A^T =

\begin{bmatrix} 1 & 3 \\ 2 & 4 \end{bmatrix}A=[13​24​]⇒AT=[12​34​]

Inverse of a Matrix (A⁻¹):

●​ Exists only for square matrices.​

●​ If A⋅A−1=IA \cdot A^{-1} = IA⋅A−1=I, then A−1A^{-1}A−1 is the inverse.​

●​ Used to solve simultaneous equations.​

Determinant & Adjoint (used for Inverse):

For a 2×2 matrix:

A=[abcd]⇒∣A∣=ad−bcA = \begin{bmatrix} a & b \\ c & d \end{bmatrix} \Rightarrow |A| = ad -

bcA=[ac​bd​]⇒∣A∣=ad−bc

Inverse:

A−1=1∣A∣⋅adj(A)A^{-1} = \frac{1}{|A|} \cdot \text{adj}(A)A−1=∣A∣1​⋅adj(A)

Applications of Matrices in Business:

●​ To solve systems of linear equations.​

●​ In inventory and production management.​

●​ Economic modeling and financial analysis.​

●​ Input-output models in economics.​