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Profit & Loss - Facts and Formula



COST PRICE (CP)

THE PRICE AT WHICH ARTICLE IS PURCHASED

SELLING PRICE (SP)

THE PRICE AT WHICH ARTICLE IS SOLD

PROFIT OR GAIN

IF SELLING PRICE (SP) IS GREATER THAN COST PRICE (CP), THE SELLING PRICE IS SAID TO HAVE PROFIT OR GAIN.

LOSS

IF SP IS LESS THAN CP ,THE SELLER IS SAID TO INCURRED A LOSS.

FORMULA

  1. GAIN=(SP)-(CP).
  2. LOSS=(CP)-(SP).
  3. LOSS OR GAIN IS ALWAYS RECKONED ON CP
  4. GAIN %={GAIN*100}/CP.
  5. LOSS%={LOSS*100}/CP.
  6. SP={(100+GAIN%) /100}*CP.
  7. SP={(100-LOSS%)/100}*CP.
  8. {100/(100+GAIN%)} *SP
  9. CP=100/(100-LOSS%)}*SP
  10. IF THE ARTICLE IS SOLD AT A GAIN OF SAY 35%, THEN SP =135% OF CP
  11. IF A ARTICLE IS SOLD AT A LOSS OF SAY 35%. THEN SP=65% OF CP.
  12. WHEN A PERSON SELLS TWO ITEMS,ONE AT A GAIN OF X% AND OTHER AT A LOSS OF X%.THEN THE SELLER ALWAYS INCURES A LOSS GIVEN: {LOSS%=(COMON LOSS AND GAIN ) 2}/10.=(X/10) 2
  13. IF THE TRADER PROFESSES TO SELL HIS GOODS AT CP BUT USES FALSE WEIGHTS,THEN

    GAIN=[ERROR/(TRUE VALUE)-(ERROR)*100]% SOLVED PROBLEMS

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