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Q1. Two persons P and Q enter into a business. P puts ₹ 14,000 more than Q, but P has invested for 8 months and Q has invested for 10 months. If P’s share is ₹ 400 more than Q’s share out of the total profit of ₹ 2,000, what is the capital contributed by P?   (2024)
(a) ₹ 30,000
(b) ₹ 26,000
(c) ₹ 24,000
(d) ₹ 20,000

Previous Year Topic Wise Questions With Solutions: Profit, Loss & Discount | CSAT Preparation - UPSCView Answer  Previous Year Topic Wise Questions With Solutions: Profit, Loss & Discount | CSAT Preparation - UPSC

Ans: (a)
Let Q invested Rs. X for 10 months and P invested Rs. (X + 14000) for 8 months.
Now, in the profit of Rs.2000, P’s share is Rs. 1200 and Q’s share is Rs. 800.
We know that, the profit is divided in the ratio of contribution.
So, {8 × (X + 14000)} / (10X) = 1200/800 Or 8X + 112000 = 15X Or 7X = 112000
Or X = Rs. 16000
Hence, money invested by Q = Rs. 16000
So, money invested or contributed by P = Rs. 16000 + Rs. 14000 = Rs. 30000

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FAQs on Previous Year Topic Wise Questions With Solutions: Profit, Loss & Discount - CSAT Preparation - UPSC

1. What is the basic formula for calculating profit and loss in a business transaction?
Ans.The basic formula for calculating profit is: Profit = Selling Price (SP) - Cost Price (CP). Conversely, for loss, the formula is: Loss = Cost Price (CP) - Selling Price (SP). If SP is greater than CP, the transaction results in profit; if CP is greater than SP, it results in loss.
2. How is discount calculated on marked price, and what is the difference between marked price and selling price?
Ans.Discount is calculated using the formula: Discount = Marked Price (MP) × Discount Rate/100. The marked price is the original price set by the seller before any discounts are applied, while the selling price is the final price after the discount has been deducted. Therefore, Selling Price = Marked Price - Discount.
3. What role do profit and loss calculations play in business decision-making?
Ans.Profit and loss calculations are crucial for business decision-making as they help determine the financial health of the business. By analyzing profit margins, businesses can set competitive pricing, manage costs, and make informed decisions regarding investments, inventory, and market strategies.
4. Can you explain the concept of profit percentage and how to calculate it?
Ans.Profit percentage is a measure of profitability expressed as a percentage of the cost price. It is calculated using the formula: Profit Percentage = (Profit/Cost Price) × 100. This ratio helps businesses assess the efficiency of their operations and pricing strategies.
5. What is the importance of understanding discounts in retail pricing strategies?
Ans.Understanding discounts is vital in retail pricing strategies as it influences consumer purchasing behavior. Discounts can attract customers, boost sales volume, and clear out inventory. Retailers must balance the discount offered with their profit margins to ensure overall profitability while remaining competitive in the market.
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