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Free Study Material for Rpf Constable Exam 31740487652

This document is a study guide for the Profit and Loss topic relevant to the RPF Constable Exam, covering essential concepts, formulas, and examples. It explains key terms such as Cost Price, Selling Price, Profit, Loss, and Discounts, along with calculations for profit and loss percentages. The guide also includes practice questions to reinforce understanding and application of the concepts.

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10 views6 pages

Free Study Material for Rpf Constable Exam 31740487652

This document is a study guide for the Profit and Loss topic relevant to the RPF Constable Exam, covering essential concepts, formulas, and examples. It explains key terms such as Cost Price, Selling Price, Profit, Loss, and Discounts, along with calculations for profit and loss percentages. The guide also includes practice questions to reinforce understanding and application of the concepts.

Uploaded by

milantuboi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Free Study Material for RPF Constable Exam

Topic: Profit and Loss

Profit and Loss (P&L) is an important topic in mathematics and business that helps in
understanding financial gains and losses. It is widely used in daily life, especially in shopping,
business transactions, and financial management. This guide explains Profit & Loss concepts
in a simple and easy-to-understand manner with formulas, examples, and shortcuts.

Table of Contents
1. Introduction to Profit & Loss
2. Important Terms in Profit & Loss
3. Basic Formulas of Profit & Loss
4. Understanding Cost Price (CP) and Selling Price (SP)
5. Discounts and Marked Price
6. Profit & Loss Percentage
7. Successive Discounts
8. Shortcuts and Tricks for Quick Calculations
9. Solved Examples and,
10. Practice Questions

Introduction to Profit & Loss


Profit and Loss are terms used in business and trade to calculate how much money is gained or lost
in a transaction. When a seller sells something for a price higher than the price at which it
was bought, a profit is made. If the selling price is lower than the purchase price, there is a
loss.
For example:
• If you buy a book for ₹200 and sell it for ₹250, you make a profit of ₹50.
• If you buy a toy for ₹300 and sell it for ₹250, you incur a loss of ₹50.
Understanding profit and loss helps in making smart financial decisions, whether you are a
business owner or a customer.

Important Terms in Profit & Loss


Before solving problems, let's understand the basic terms:

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Term Meaning Example
Cost Price (CP) The price at which an item is A shopkeeper buys a pen for ₹50. CP
purchased. = ₹50.
Selling Price (SP) The price at which an item is The shopkeeper sells the pen for
sold. ₹60. SP = ₹60.
Profit (P) The extra money earned when Profit = ₹60 - ₹50 = ₹10.
SP > CP.

Loss (L) The money lost when SP < CP. If the pen was sold for ₹40, Loss =
₹50 - ₹40 = ₹10.
Marked Price (MP) The original price of the item A shirt has a price tag of ₹500 before
before any discount. the discount. MP = ₹500.
Discount The amount was reduced from If a 10% discount is given, the final
the Marked Price. price will be ₹450.

Basic Formulas of Profit & Loss


Here are the essential formulas:

Profit Calculation:
Profit= Selling Price−Cost Price(SP>CP)\text{Profit} = \text{Selling Price} - \text{Cost Price} (SP
> CP)Profit=Selling Price−Cost Price(SP>CP)

Loss Calculation:
Loss=Cost Price−Selling Price(CP>SP)\text{Loss} = \text{Cost Price} - \text{Selling Price} (CP >
SP)Loss=Cost Price−Selling Price(CP>SP)

Profit Percentage (% Profit)


\text{Profit%} = \left( \frac{\text{Profit}}{\text{Cost Price}} \times 100 \right) \%

Loss Percentage (% Loss)


\text{Loss%} = \left( \frac{\text{Loss}}{\text{Cost Price}} \times 100 \right) \%

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Understanding Cost Price (CP) and Selling Price (SP)
The relationship between CP and SP determines whether we have a profit or a loss:
• If SP > CP → Profit
• If SP < CP → Loss
• If SP = CP → No Profit, No Loss
How to Find CP or SP?
• If Profit % is given:
• SP = \left( 1 + \frac{\text{Profit %}}{100} \right) \times CP
• If Loss % is given:
• SP = \left( 1 - \frac{\text{Loss %}}{100} \right) \times CP

Discounts and Marked Prices


Discounts are used to attract customers by reducing the price of an item.
Discount=Marked Price−Selling Price\text{Discount} = \text{Marked Price} - \text{Selling
Price}Discount=Marked Price−Selling Price \text{Discount %} = \left(
\frac{\text{Discount}}{\text{Marked Price}} \times 100 \right) \%
For example, if a ₹1000 phone has a 20% discount, the discount amount is ₹200, so the final price
is ₹800.

Profit & Loss Percentage


Scenario Formula
Profit % ProfitCP×100\frac{\text{Profit}}{\text{CP}} \times
100CPProfit×100
Loss % LossCP×100\frac{\text{Loss}}{\text{CP}} \times
100CPLoss×100
For multiple transactions, successive percentage formulas are used.

Successive Discounts
When multiple discounts are given, the final discount is calculated as:
Net Discount=A+B−(A×B100)\text{Net Discount} = A + B - \left( \frac{A \times B}{100} \right)Net
Discount=A+B−(100A×B)
Where A and B are successive discount percentages.

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Shortcuts and Tricks for Quick Calculations
• If an article is sold at a gain of 20%, the SP is:
• 120% of CP=120100×CP120\% \text{ of CP} = \frac{120}{100} \times CP120% of
CP=100120×CP
• If an article is sold at a loss of 15%, the SP is:
• 85% of CP=85100×CP85\% \text{ of CP} = \frac{85}{100} \times CP85% of CP=10085×CP
• If an item is sold at two successive profits of 10% and 20%, the total profit % is:
• 10+20+10×20100=32%10 + 20 + \frac{10 \times 20}{100} = 32\%10+20+10010×20=32%

Solved Examples
Example 1: Finding Profit %
A shopkeeper buys an item for ₹500 and sells it for ₹650. Find the profit %.
Profit=SP−CP=650−500=150\text{Profit} = SP - CP = 650 - 500 = 150Profit=SP−CP=650−500=150
\text{Profit %} = \left( \frac{150}{500} \times 100 \right) = 30\%
Example 2: Finding SP with a Discount
A shirt is marked at ₹1000 and a 20% discount is given. Find the final SP.
Discount=20100×1000=200\text{Discount} = \frac{20}{100} \times 1000 = 200Discount=10020
×1000=200 SP=1000−200=800SP = 1000 - 200 = 800SP=1000−200=800.

Practice Questions
1. A bicycle is bought for ₹2000 and sold at a 25% profit. Find the selling price.
2. A shopkeeper sells a watch for ₹720, incurring a 10% loss. Find the cost price.
3. A trader gives two successive discounts of 10% and 5%. Find the total discount.
4. An article is marked at ₹500 and sold at ₹425. Find the discount percentage.
5. A seller gains 20% profit after giving a 10% discount. Find the Marked Price if CP is ₹100.
This study guide explains Profit & Loss in the simplest way possible. Keep practicing to improve
your problem-solving skills.

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