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IBPS Clerk Basic Profit & Loss

Study Material — 2 PYQs (2020–2020) · Concept Notes · Shortcuts

IBPS Clerk Basic Profit & Loss is a frequently tested subtopic — 2 previous year questions from 2020–2020 papers are included below with concept notes, key rules and shortcut tricks.

2 PYQs
2020–2020
14 Practice
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10 Key Points
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Previous Year Questions

IBPS Clerk Basic Profit & Loss — Past Exam Questions

2 questions from actual IBPS Clerk papers · all shown free · click option to reveal solution

Exam Q 12020Previous Year Pattern

A merchant sells a book at a loss of 15%. If the cost price is ₹800, what is the selling price?

Exam Q 22020Previous Year Pattern

A shopkeeper buys a shirt for ₹400 and sells it for ₹520. What is his profit percentage?

Concept Notes

Basic Profit & Loss— Rules & Concept

Core ConceptRead this first — the foundation of the topic
Core Concept

When you buy something for Rs. 100 and sell it for Rs. 120, you make Rs. 20 profit. If you sell it for Rs. 80, you face Rs. 20 loss. This simple idea forms the basis of all profit-loss calculations

Key Terms

Cost Price (CP) = Price at which goods are purchased. Selling Price (SP) = Price at which goods are sold. Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP).

Formula BlockMemorise — at least one formula appears in every paper
Profit% = (Profit/CP) × 100. Loss% = (Loss/CP) × 100. SP = CP + Profit = CP(100 + Profit%)/100. SP = CP - Loss = CP(100 - Loss%)/100. CP = SP × 100/(100 + Profit%). CP = SP × 100/(100 - Loss%).
Exam PatternsWhat examiners ask — read before attempting PYQs

SSC CGL asks 2-3 direct profit-loss questions every year. Common question types include finding CP when SP and profit% are given, calculating overall profit/loss in multiple transactions, and finding marked price after discount. Powerful Shortcut #1: When profit% = loss%, overall result is always loss. Loss% = (Profit%)²/100. Example: 20% profit on one item, 20% loss on another = Overall loss of 4%.

Worked ExampleSolve this step-by-step before moving on
1
Step 1

Identify CP = Rs. 800, SP = Rs. 920

2
Step 2

Calculate Profit = SP - CP = 920 - 800 = Rs. 120

3
Step 3

Apply formula Profit% = (Profit/CP) × 100 = (120/800) × 100 = 15% Answer: 15% profit Shortcut #2: Quick CP calculation when SP and profit% known. Use: CP = SP/(1 + Profit%/100). For 25% profit, divide SP by 1.25. For 20% loss, divide SP by 0.8. Worked Example 2: An article is sold for Rs. 1440 at 20% loss. Find the cost price.

1
Step 1

SP = Rs. 1440, Loss% = 20%

2
Step 2

Use shortcut CP = SP/(1 - Loss%/100) = SP/0.8

3
Step 3

CP = 1440/0.8 = Rs. 1800 Verification: 20% of 1800 = 360, so SP = 1800 - 360 = 1440 ✓ Answer: Rs. 1800 Shortcut #3: For successive transactions, multiply factors. 10% profit followed by 20% loss = 1.1 × 0.8 = 0.88, meaning 12% overall loss. Most Common Trap: Students calculate percentage on Selling Price instead of Cost Price. Remember: Profit% and Loss% are ALWAYS calculated on Cost Price, never on Selling Price. This mistake costs at least 1-2 marks in every exam. Another frequent error involves sign confusion. When CP > SP, it's a loss situation. When SP > CP, it's profit. Always check this relationship before applying formulas. Exam Strategy: Start with identifying what's given and what's asked. Write down CP, SP clearly. Apply the basic formula first, then use shortcuts for speed. Double-check by working backwards - if you found CP, calculate SP using the given profit% to verify your answer.

Key Points to Remember

  • Profit occurs when Selling Price > Cost Price, Loss occurs when Cost Price > Selling Price
  • Profit% and Loss% are always calculated on Cost Price, never on Selling Price
  • Quick formula: SP = CP × (100 ± gain%)/100 where + for profit, - for loss
  • Shortcut: When profit% equals loss% in two transactions, overall result is always loss
  • CP calculation trick: CP = SP/(1 + profit%/100) or CP = SP/(1 - loss%/100)
  • For successive discounts or profits, multiply the factors: (1±%/100)
  • Break-even point means SP = CP, so profit = 0 and loss = 0
  • Cost Price includes all expenses like transport, taxes, and overhead costs
  • Marked Price is different from Selling Price when discount is given
  • Overall loss% in equal profit-loss case = (profit%)²/100

Exam-Specific Tips

  • When profit% = loss% = x%, then overall loss% = x²/100
  • If an article is sold at cost price after giving x% discount, then markup% = x/(100-x) × 100
  • For 2 articles with equal CP, one sold at x% profit and other at x% loss, overall loss = 2x²/(100)²
  • When SP of x articles = CP of y articles, profit% = (y-x)/x × 100
  • If CP of A is x% more than CP of B, then CP of B is x/(100+x) × 100% less than A
  • Selling price formula: SP = MP × (100-discount%)/100 where MP is Marked Price
  • For successive profits of a% and b%, overall profit% = a + b + ab/100
  • Break-even occurs when SP = CP, meaning profit percentage = 0%
Practice MCQs

Basic Profit & Loss — Practice Questions

14graded MCQs · easy to hard · full solution & trap analysis

All MCQs →
Practice 1easy

A shopkeeper buys 10 pens for ₹100 and sells each pen for ₹12. What is his profit percentage?

Practice 2easy

If the cost price of an item is ₹500 and the profit is ₹100, what is the profit percentage?

Practice 3easy

A vendor buys oranges at ₹12 per dozen and sells them at ₹15 per dozen. What is his profit percentage?

Practice 4medium

A shopkeeper buys a shirt for ₹400 and marks it up by 50%. He then offers a discount of 20% on the marked price. What is his profit percentage?

Practice 5medium

A merchant buys two items: Item A for ₹500 and Item B for ₹300. He sells Item A at a 40% profit and Item B at a 10% loss. What is his overall profit or loss percentage?

Practice 6medium

A retailer marks up goods by 60% above cost price. After giving a discount of 25% on the marked price, he makes a profit of ₹480. What is the cost price of the goods?

Practice 7medium

A vendor sells apples at ₹60 per kg and makes a loss of 25%. At what price per kg should he sell to make a profit of 25%?

Practice 8medium

A trader buys 120 pens for ₹1,200. He sells 80 pens at ₹15 per pen and the remaining pens at ₹12 per pen. What is his overall profit or loss percentage?

Practice 9medium

A book is sold for ₹432 at a profit of 20%. If the book had been sold for ₹360, what would be the loss or profit percentage?

Practice 10hard

A merchant marks up goods by 60% above cost price. He then offers a discount of 25% on the marked price. If he sells 200 units and makes a total profit of ₹4800, what is the cost price per unit?

Practice 11hard

A trader buys goods at ₹2000 per dozen. He sells them at ₹200 per piece. If he sells 5 dozen and gives a discount of ₹50 per dozen to a bulk buyer, what is his profit percentage on this transaction?

Practice 12hard

A shopkeeper sells an item at ₹840 and incurs a loss of 30%. To earn a profit of 20%, at what price should he have sold the item?

Practice 13hard

Two articles are sold for ₹1200 each. One is sold at a profit of 25% and the other at a loss of 20%. What is the overall loss or profit percentage on the transaction?

Practice 14hard

A shopkeeper buys 120 articles at ₹45 each. He sells 80% of them at ₹72 each and the remaining at ₹36 each. What is his overall profit percentage?

60-Second Revision — Basic Profit & Loss

  • Remember: Profit% = (SP-CP)/CP × 100, always on cost price base
  • Formula: CP = SP/(1 ± gain%/100) for quick reverse calculations
  • Trap: Never calculate profit percentage on selling price
  • Shortcut: Equal profit-loss case always gives overall loss = (%)²/100
  • Quick check: SP > CP means profit, CP > SP means loss
  • Pattern: Successive changes multiply as (1±%/100) factors
  • Memory aid: Cost price is the denominator in all percentage calculations
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