Tips & Tricks: Profit & Loss

# Tips & Tricks: Profit & Loss - Tips & Tricks for Government Exams - Bank Exams

### Theory

• We try to provide all types of shortcut tricks on profit and loss here. Visitors please read carefully all shortcut examples. These examples here will help you to better understand profit and loss.
• Before doing anything we recommend you to do a math practice set. Choose any twenty math problems and write it down on a page. Using basic math formula do first ten maths of that page. You also need to keep track of the time. After solving all ten math questions write down total time taken by you to solve those questions. Now read our examples on profit and loss shortcut tricks and practice few questions. After finishing this do remaining questions using profit and loss shortcut tricks. Again keep track of Timing. This time you will surely see improvement in your timing. But this is not all you need. If you need to improve your timing more then you need to practice more.

### Tips

Before going to chapter we are follow some important facts and formula without this we are not able to calculate any profit or loss on any articles using shortcut tricks. When we purchase some item and then sell it we make profit or loss some time it depends on the cost price and selling price of an particular item.
Anything we learn in our school days was basics and that is well enough for passing our school exams. Now the time has come to learn for our competitive exams. For this we need our basics but also we have to learn something new. That’s where shortcut tricks are comes into action.

• Cost Price or CP
The Price at which a particular item or article is purchased, is called its Cost Price or in short called CP. Cost price is amount of money goes out from us when purchase any article or any particular item.
• Selling Price or SP
The price at which a particular item or article is sold, called its Selling Price or in short called SP.
Selling Price is a amount of money came in when selling by any thing.
• Profit or Gain
If Selling Price or SP of an item is more than Cost Price or CP, then vendor is said to have a Profit or Gain.

• Loss
If Selling Price or SP of an item is less than Cost Price or CP, the vendor said to have a Loss.

• Marked Price
When we purchase any item we saw the label on it as price or marked Price and that is said to be Marked Price or MP.

### Formula

• If Selling Price is more than Cost Price then it is called Profit or Gain.
Gain = SP – CP
15% Profit on an item means,
Cost price = 100%
Selling price = 115%
Profit = 15%
• If Cost Price is more than Selling Price then it is called Loss.
Loss = CP – SP
15% Loss on an item means,
Cost price = 100%
Selling price = 85%
Loss = 15%
• Profit and Loss is always calculated on Cost Price or CP.

### Solved Examples

Question for Tips & Tricks: Profit & Loss
Try yourself:A person saves 20 percent of his income. If the income of that person increased by 16 percent and he decided to save 25 percent, then find the percent increase in his saving as compared to previous one.

Question for Tips & Tricks: Profit & Loss
Try yourself:A person sell two horses for rupees 480 each. On the first horse he gains 25 percent and on the second horse he losses 25 percent. Find the percent gain or loss in the transaction.

Question for Tips & Tricks: Profit & Loss
Try yourself:P calculates his profit percent on selling price while Q calculates his profit percent on cost price. They notice that difference between their profits is 1000 rupees. If selling price of both P and Q are same and P gets 40% profit and Q gets 60% profit. Then find their selling price

The document Tips & Tricks: Profit & Loss | Tips & Tricks for Government Exams - Bank Exams is a part of the Bank Exams Course Tips & Tricks for Government Exams.
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## FAQs on Tips & Tricks: Profit & Loss - Tips & Tricks for Government Exams - Bank Exams

 1. What is profit and loss?
Ans. Profit and loss is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year. It helps determine the net profit or loss generated by a business.
 2. How is profit calculated?
Ans. Profit is calculated by subtracting the total expenses and costs from the total revenue generated. The formula for calculating profit is: Profit = Total Revenue - Total Expenses.
 3. What is the significance of profit and loss in business?
Ans. Profit and loss is significant in business as it provides a clear understanding of a company's financial performance. It helps in assessing whether a business is making a profit or incurring losses, which is essential for making informed decisions, attracting investors, and planning for future growth.
 4. How can one improve profitability in a business?
Ans. There are several ways to improve profitability in a business. Some strategies include reducing costs, increasing sales, improving operational efficiency, diversifying product or service offerings, implementing effective pricing strategies, and exploring new markets or customer segments.
 5. What are the key components of a profit and loss statement?
Ans. The key components of a profit and loss statement include revenue (sales), cost of goods sold (COGS), gross profit, operating expenses, net profit, and taxes. Revenue represents the total income generated from sales, while COGS includes the direct costs associated with producing or delivering the goods or services. Gross profit is derived by subtracting COGS from revenue, and operating expenses include all other expenses incurred during business operations. Net profit is the final result after deducting operating expenses from gross profit, and taxes are calculated based on the net profit.

## Tips & Tricks for Government Exams

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