General Aptitude: Profit and Loss & Discount

By Asha Gupta|Updated : June 14th, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Profit, Loss & Discount

Important Terminologies:

  • Cost Price: The price at which someone buys any article from the seller.
  • Selling Price: The price at which the seller sells the article to the buyer.
  • Marked price/List Price: The price that is printed on the article.
  • Profit/Loss = S.P. – C.P.

If S.P. > C.P. then there will be profit on the sale of the article. If S.P. < C.P. then there will be a loss on the sale of the article.

If S.P. = C.P. then there will be neither loss nor profit on the sale of the article.

Note: Profit or Loss percentage is always calculated on the C.P. of the article.

  • Discount: An amount of deduction offered on the market price of the article to the buyer.

Discount = M.P. – S.P.

The discount percentage is always calculated on the M.P. of the article.

  • Commission: An amount of money that is offered to the seller or to the salesmen upon completing a deal/task usually on the sale of a certain amount of goods and services. It is always calculated on the S.P. of the article.

Important Formulas: 

Important Concepts:

  • Successive Discount: It is a concept in which the seller offers more than one

discount on the market price of the article to the buyer. Then the resultant discount value is calculated by the following formula:

If a seller offers two successive discounts of x% and y% on an article marked at Rs. P.

Then Single Discount Rate = x + y - xy/100 (Use only numerical values of discounts without +/- sign)

  • Dishonest Shopkeeper: In these types of questions, the dishonest shopkeeper promises to sell the article at the cost price but uses the lighter weights to measure the quantity of the material. Thus, his Profit/Gain % is asked in the question. So, 

Profit%(or Gain%) = 𝟏𝟎𝟎×(𝑶𝒓𝒊𝒈𝒊𝒏𝒂𝒍 𝒘𝒆𝒊𝒈𝒉𝒕−𝑳𝒊𝒈𝒉𝒕𝒆𝒓 𝒘𝒆𝒊𝒈𝒉𝒕) / 𝑳𝒊𝒈𝒉𝒕𝒆𝒓 𝑾𝒆𝒊𝒈𝒉𝒕

 

 

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Posted by:

Asha GuptaAsha GuptaMember since Mar 2021
Associate Content Developer - AE/JE Non-technical
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