**PROFIT & LOSS**

**Tip #1**

If an article is sold at a gain of say, 35% then S.P. = 135% of C.P.

**Tip #2**

If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.

**Tip #3**

**Tip # 4**

**IMPORTANT FACTS**

*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 % = | Gain x 100 | ||

C.P. |

- Loss Percentage: (Loss %)

Loss % = | Loss x 100 | ||

C.P. |

- Selling Price: (S.P.)

SP = | (100 + Gain %) | x C.P | ||

100 |

- Selling Price: (S.P.)

SP = | (100 – Loss %) | x C.P. | ||

100 |

- Cost Price: (C.P.)

C.P. = | 100 | x S.P. | ||

(100 + Gain %) |

- Cost Price: (C.P.)

C.P. = | 100 | x S.P. | ||

(100 – Loss %) |

- 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 % | 2 | = | x |
2 | . | ||||

10 | 10 |

- If a trader professes to sell his goods at cost price, but uses false weights, then

Gain % = | Error | x 100 | %. | |