IBPS Clerk Basic Profit & Loss ā Study Material, 2 PYQs & Practice MCQs | ZestExam
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IBPS Clerk Basic Profit & Loss
Study Material ā 2 PYQs (2020ā2020) Ā· Concept Notes Ā· Shortcuts
IBPS Clerk Basic Profit & Loss is a frequently tested subtopic ā 2 previous year questions from 2020ā2020 papers are included below with concept notes, key rules and shortcut tricks.
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
š”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)
What examiners ask ā read before attempting PYQs
āļøExample
20% profit on one item, 20% loss on another = Overall loss of 4%
āļøWorked Example 1
1
Identify CP = Rs. 800, SP = Rs. 920
2
Calculate Profit = SP - CP = 920 - 800 = Rs. 120
3
Apply formula Profit% = (Profit/CP) Ć 100 = (120/800) Ć 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
āļøWorked Example 2
1
SP = Rs. 1440, Loss% = 20%
2
Use shortcut CP = SP/(1 - Loss%/100) = SP/0.8
3
CP = 1440/0.8 = Rs. 1800
Verification: 20% of 1800 = 360, so SP = 1800 - 360 = 1440
āAnswer
Rs. 1800
Shortcut #3: For successive transactions, multiply factors. 10% profit followed by 20% loss = 1.1 Ć 0.8 = 0.88, meaning 12% overall loss
āMost Common Trap
Students calculate percentage on Selling Price instead of Cost Price
š”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
šExam 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 Ć (100 Ā± gain%)/100 where + for profit, - for loss
Shortcut: When profit% equals loss% in two transactions, overall result is always loss
A shopkeeper buys 10 pens for ā¹100 and sells each pen for ā¹12. What is his profit percentage?
Practice 2easy
If the cost price of an item is ā¹500 and the profit is ā¹100, what is the profit percentage?
Practice 3easy
A vendor buys oranges at ā¹12 per dozen and sells them at ā¹15 per dozen. What is his profit percentage?
Practice 4medium
A shopkeeper buys a shirt for ā¹400 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 ā¹500 and Item B for ā¹300. 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 ā¹480. What is the cost price of the goods?
Practice 7medium
A vendor sells apples at ā¹60 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 ā¹1,200. He sells 80 pens at ā¹15 per pen and the remaining pens at ā¹12 per pen. What is his overall profit or loss percentage?
Practice 9medium
A book is sold for ā¹432 at a profit of 20%. If the book had been sold for ā¹360, 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 ā¹4800, what is the cost price per unit?
Practice 11hard
A trader buys goods at ā¹2000 per dozen. He sells them at ā¹200 per piece. If he sells 5 dozen and gives a discount of ā¹50 per dozen to a bulk buyer, what is his profit percentage on this transaction?
Practice 12hard
A shopkeeper sells an item at ā¹840 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 ā¹1200 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 ā¹45 each. He sells 80% of them at ā¹72 each and the remaining at ā¹36 each. What is his overall profit percentage?
60-Second Revision ā Basic Profit & Loss
Remember: Profit% = (SP-CP)/CP Ć 100, always on cost price base
Formula: CP = SP/(1 Ā± gain%/100) for quick reverse calculations
Trap: Never calculate profit percentage on selling price
Shortcut: Equal profit-loss case always gives overall loss = (%)Ā²/100
Quick check: SP > CP means profit, CP > SP means loss
Pattern: Successive changes multiply as (1Ā±%/100) factors
Memory aid: Cost price is the denominator in all percentage calculations