Profit & Loss | Mental Maths - Class 1 PDF Download

Introduction to Profit and Loss

Profit and loss are terms used to find out if we made money or lost money when buying and selling things.

• Profit is when we sell something for more than what we paid for it.
• Loss is when we sell something for less than what we paid for it.

For example:

• If you buy a toy for Rs. 100 and sell it for Rs. 120, you make a profit of Rs. 20.
• If you buy a toy for Rs. 100 and sell it for Rs. 80, you make a loss of Rs. 20.

Important Terms related to Profit and Loss

Let's explore the meanings of these terms individually:

1. Cost Price (C.P.): The price at which you buy something.

   • Example: You buy a notebook for Rs. 50. So, the cost price is Rs. 50.

2. Selling Price (S.P.): The price at which you sell something.

   • Example: You sell the notebook for Rs. 60. So, the selling price is Rs. 60.

3. Profit (P): When the selling price is higher than the cost price, the difference is called profit.

   • Example: Selling Price (Rs. 60) - Cost Price (Rs. 50) = Profit of Rs. 10.

4. Loss (L): When the selling price is lower than the cost price, the difference is called loss.

   • Example: Cost Price (Rs. 50) - Selling Price (Rs. 40) = Loss of Rs. 10.

5. Marked Price (M.P.): The price written on the item, before any discounts.

   • Example: A shirt is marked for Rs. 500, but you sell it for Rs. 450. The marked price is Rs. 500.

6. Discount: The reduction in the marked price.

   • Formula: Discount = Marked Price - Selling Price.
   • Example: If the marked price is Rs. 100 and the selling price is Rs. 80, the discount is Rs. 20.

Profit and Loss Formulas

Profit Formula:

• Profit = Selling Price (S.P.) - Cost Price (C.P.)
• Example: If S.P. is Rs. 200 and C.P. is Rs. 150, Profit = Rs. 200 - Rs. 150 = Rs. 50.

Loss Formula:

• Loss = Cost Price (C.P.) - Selling Price (S.P.)
• Example: If C.P. is Rs. 150 and S.P. is Rs. 100, Loss = Rs. 150 - Rs. 100 = Rs. 50.

Profit Percentage (P%):

• Profit Percentage = (Profit / Cost Price) × 100
• Example: If Profit is Rs. 50 and Cost Price is Rs. 150, Profit Percentage = (50 / 150) × 100 = 33.33%.

Loss Percentage (L%):

• Loss Percentage = (Loss / Cost Price) × 100
• Example: If Loss is Rs. 50 and Cost Price is Rs. 150, Loss Percentage = (50 / 150) × 100 = 33.33%.

Profit and Loss Examples

Example 1 (Profit):

• A shopkeeper buys a pen for Rs. 20 and sells it for Rs. 30.
• Profit = Selling Price - Cost Price = 30 - 20 = Rs. 10.

Example 2 (Loss):

• A shopkeeper buys a book for Rs. 100 and sells it for Rs. 80.
• Loss = Cost Price - Selling Price = 100 - 80 = Rs. 20.

These are some common examples of the profit and loss concept in real life, which we observe regularly.

Fun Questions to Practice

1. Question 1:

   • If you buy a toy for Rs. 50 and sell it for Rs. 60, how much profit did you make?
   • Answer: Profit = Rs. 60 - Rs. 50 = Rs. 10.

2. Question 2:

   • If the cost price of a notebook is Rs. 80 and the selling price is Rs. 100, what is the profit percentage?
   • Answer: Profit Percentage = (100 - 80) / 80 × 100 = 25%.

3. Question 3:

   • A shopkeeper buys a shirt for Rs. 200 and sells it for Rs. 180. What is the loss percentage?
   • Answer: Loss Percentage = (200 - 180) / 200 × 100 = 10%.

4. Question 4:

   • A shopkeeper sells a jacket for Rs. 500 after giving a 20% discount. What is the marked price?
   • Answer: Marked Price = Selling Price / (100 - Discount Percentage) × 100 = 500 / (100 - 20) × 100 = Rs. 625.