# PROFIT & LOSS

## Profit or Gain :

If selling price is greater than C.P., the seller is said to have a profit or gain.

## Example :

If Rama sell a product or article in 50 rupees but the cost price is 40. Then Rama have a 10 rupees profit.

Here 50 rupees is the selling price (S.P) and 40 rupees is the cost price (C.P).

## Loss :

If selling price is less than cost price the seller is said to have incurred a loss.

## Example :

If Rama sell a product or article in 40 rupees but the cost price is 50. Then Rama have a 10 rupees loss.

Here 40 rupees is the selling price S.P and 50 rupees is the cost price C.P.

## IMPORTANT FORMULAE

- Profit = (S.P.)- (C.P.)
- Loss = (C.P.)-(S.P.)
- Loss or profit is always depend on C.P.
- Profit Percentage:

Profit % = (Profit x 100)/ C.P
- Loss Percentage:

Loss % = (Loss x 100)/ C.P
- Selling Price:

S.P =
[(100 + Gain
%/100) *C.P]
- Selling Price:

S.P. = [(100 - Gain
%/100) *C.P]
- Cost Price:

C.P. = [100/(100 + Gain %) * S.P.]
- Cost Price:

C.P. = [100/(100 - Gain %) * S.P.]
- If an article or product is sold at a gain of say 25%, then S.P. = 125% of C.P.
- If an article is sold at a loss of say, 25% then S.P. = 75% of C.P.