IMPORTANT FACTS IN PROFIT & LOSS STATEMENT

IMPORTANT FACTS

Cost Price:

The price, at which an article is purchased, is called its cost price, abbreviated as C.P.

Selling Price:

The price, at which an article is sold, is called its selling prices, abbreviated as S.P.

Profit or Gain:

If S.P. is greater than C.P., the seller is said to have a profit or gain.

Loss:

If S.P. is less than C.P., the seller is said to have incurred a loss.

IMPORTANT FORMULAE

1. Gain = (S.P.) - (C.P.)
2. Loss = (C.P.) - (S.P.)
3. Loss or gain is always reckoned on C.P.
4. Gain Percentage: (Gain %)

   Gain % =		Gain x 100
   		C.P.

5. Loss Percentage: (Loss %)

   Loss % =		Loss x 100
   		C.P.

6. Selling Price: (S.P.)

   SP =		(100 + Gain %)	x C.P
   		100

7. Selling Price: (S.P.)

   SP =		(100 - Loss %)	x C.P.
   		100

8. Cost Price: (C.P.)

   C.P. =		100	x S.P.
   		(100 + Gain %)

9. Cost Price: (C.P.)

   C.P. =		100	x S.P.
   		(100 - Loss %)

10. If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.
11. If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.
12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:

    Loss % =		Common Loss and Gain %		2	=		x		2	.
    		10					10
13. If a trader professes to sell his goods at cost price, but uses false weights, then

    Gain % =		Error	x 100	%.
    		(True Value) - (Error)

IMPORTANT FORMULAS OF PROFIT & LOSS STATEMENT

• 
  

  Important Formulas - Profit and Loss

  • Cost price (CP) is the price at which an article is purchased.
  
  
  • Selling price (SP) is the price at which an article is sold.
  
  
  • If SP > CP, it is a profit or gain
  
  
  • If CP > SP, it is a loss.
  
  
  • Gain or Profit = SP – CP
  
  
  • Loss = CP - SP
  
  
  • Loss or gain is always reckoned on CP
  
  
  • Profit Percentage (Profit %) = $MF#%\dfrac{\text{Profit}}{\text{CP}}\times 100  = \dfrac{\left(\text{SP - CP}\right)}{\text{CP}}\times 100$MF#%
  
  
  • Loss Percentage (Loss %) = $MF#%\dfrac{\text{Loss}}{\text{CP}}\times 100  = \dfrac{\left(\text{CP - SP}\right)}{\text{CP}}\times 100$MF#%
  
  
  • In the case of a gain or profit, 
                                 $MF#%\text{SP} = \dfrac{\left(100 + \text{Gain} \% \right)} {100}\times \text{CP} $MF#%
    
    
    
                                 $MF#%CP = \dfrac{100} {\left(100 +\text{ Gain }\% \right)}\times \text{SP} $MF#%
  
  
  
  
  • In the case of a loss, 
                                 $MF#%SP = \dfrac{\left(100 - \text{Loss} \%\right) } {100}\times \text{CP} $MF#%
    
    
    
                                 $MF#%CP = \dfrac{100} {\left(100 - \text{Loss} \% \right)}\times \text{SP} $MF#%
  
  
  
  
  • If an article is sold at a gain of 20%, then SP = 120% of CP
  
  
  • If an article is sold at a loss of 20% then SP = 80% of CP
  
  
  • If an article is sold at a loss of 20% then SP = 80% of CP
  
  
  • If a person sells two items at the same price; one at a gain of x % and another at a loss of x %, then the seller always incurs a loss expressed as
                                 $MF#%\text{Loss }\% = \left(\dfrac{\text{ Common   Loss  and   Gain }\% } {10}\right)^2 = \left(\dfrac{ x } {10}\right)^2$MF#%
  
  
  
  
  • If a trader professes to sell his goods at cost price, but uses false weights, then 
                                 $MF#%Gain \% = \left[\dfrac{ \text{Error}} {\left(\text{ True  Value - Error }\right)} \times 100 \right] \% $MF#%