Loss and Profit, IBPS banking examination

In the world of business we always come across the words such transactions, buyer, seller. These are the words which are related to financial business. We also listen words like loss and profit on buying and selling any type of material/good/an article. In this topic we are going to learn basic concepts about loss and profit and its examples for banking examination purpose.

Some basic terms to be understood

Cost Price (C.P.)

A price at which we buy any material/good/an article is called Cost Price.

Selling Price (S.P.)

A price at which we sell any material/good/an article is called Selling Price.

Profit

If Selling Price is greater than the Cost Price, in such case we can say he is in Profit.

S.P.>C.P

Loss

If Selling Price is lesser than the Cost Price, in such case we can say he has incurred a Loss.

S.P<C.P

Some basic formulae related to Profit and Loss

Profit

When selling price S.P. is greater than cost price (C.P.), a profit is made,        Profit = S.P. - C.P.

Profit + C.P. =  S.P.

C.P. = S.P. - Profit.

Percentage profit is calculated on C.P.       % profit = [profit / C.P.] × 100,

Loss

When selling price S.P. is lesser than cost price (C.P.), a loss is made,        Loss = C.P. - S.P.

Loss + S.P. = C.P.

S.P. = C.P. - Loss

Percentage profit or loss is calculated on C.P. % loss = [loss / C.P.] × 100

If we know % profit or %loss than S.P. or C.P. can be calculated from

%profit given	%loss given
S.P. = [(100 + %P) / 100] × C.P.	S.P. = [(100 - %L) / 100] × C.P.
C.P. = [100 / (100 + %P)] × S.P.	C.P. = [100 / (100 +%L)] × S.P.