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 Page 1


Profit
and Loss
Page 2


Profit
and Loss
Profit and loss are important whenever goods are bought
and sold. 
Whenever a shopkeeper sells an item more than he has
bought it for, he has made a profit. But if he sells it for
lesser than the price at which he bought it, he makes a
loss.
Page 3


Profit
and Loss
Profit and loss are important whenever goods are bought
and sold. 
Whenever a shopkeeper sells an item more than he has
bought it for, he has made a profit. But if he sells it for
lesser than the price at which he bought it, he makes a
loss.
Cost prices (CP) : It is the amount at
which the shopkeeper buys an article.
Selling price (SP) : It is the amount at
which the shopkeeper sells the article
to the customer.
Whenever the selling price is more
than the cost price, it is a profit.
Profit = Selling price – Cost Price
Page 4


Profit
and Loss
Profit and loss are important whenever goods are bought
and sold. 
Whenever a shopkeeper sells an item more than he has
bought it for, he has made a profit. But if he sells it for
lesser than the price at which he bought it, he makes a
loss.
Cost prices (CP) : It is the amount at
which the shopkeeper buys an article.
Selling price (SP) : It is the amount at
which the shopkeeper sells the article
to the customer.
Whenever the selling price is more
than the cost price, it is a profit.
Profit = Selling price – Cost Price
When the selling price is less than
the cost price it is a loss.
Loss = Cost price – Selling Price
If the selling price and cost price
are equal, there is no profit or loss.
Page 5


Profit
and Loss
Profit and loss are important whenever goods are bought
and sold. 
Whenever a shopkeeper sells an item more than he has
bought it for, he has made a profit. But if he sells it for
lesser than the price at which he bought it, he makes a
loss.
Cost prices (CP) : It is the amount at
which the shopkeeper buys an article.
Selling price (SP) : It is the amount at
which the shopkeeper sells the article
to the customer.
Whenever the selling price is more
than the cost price, it is a profit.
Profit = Selling price – Cost Price
When the selling price is less than
the cost price it is a loss.
Loss = Cost price – Selling Price
If the selling price and cost price
are equal, there is no profit or loss.
T h a n k
Y o u
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FAQs on PPT: Profit & Loss - Mathematics for Class 5

1. What is profit and loss?
Ans. Profit and loss refer to the financial gain or loss resulting from the difference between the revenue earned and the expenses incurred by a business or individual within a specific period.
2. How is profit calculated?
Ans. Profit is calculated by subtracting total expenses from total revenue. The formula for calculating profit is Profit = Total Revenue - Total Expenses.
3. What is the significance of profit and loss statement?
Ans. The profit and loss statement provides a clear overview of a business's financial performance by showing its revenue, expenses, and resulting profit or loss. It helps in assessing the business's profitability and making informed decisions.
4. How can one improve profitability based on the profit and loss statement?
Ans. By analyzing the profit and loss statement, one can identify areas where expenses can be reduced, revenue can be increased, or inefficient processes can be improved to enhance profitability.
5. Can a business have a loss instead of a profit?
Ans. Yes, a business can incur a loss if its total expenses exceed its total revenue. This may happen due to various factors such as low sales, high operating costs, or unexpected expenses.
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