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IBPS RRB PO Basic Profit & Loss

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This page covers IBPS RRB PO Basic Profit & Loss with complete concept notes, 14 graded practice MCQs, key points and exam-specific tips. Free to study.

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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 mobile phone is marked at ₹15,000. A shopkeeper gives a discount of 10% and still makes a profit of 20%. What is the Cost Price of the mobile phone?

Practice 2easy

A trader buys 50 kg of rice for ₹2000 and sells it at ₹50 per kg. What is his profit percentage?

Practice 3easy

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

Practice 4easy

A vendor purchases oranges at ₹5 per orange and sells them at ₹8 per orange. If he sells 200 oranges, what is his total profit?

Practice 5easy

A book is sold for ₹240 at a loss of 20%. What is the Cost Price of the book?

Practice 6easy

A merchant sells two items. Item A is sold at a profit of 25%, and Item B is sold at a loss of 15%. If the Cost Price of both items is ₹400 each, what is the total Selling Price?

Practice 7medium

A shopkeeper buys a watch for ₹800 and marks it at 60% above the cost price. He then offers a discount of 25% on the marked price. What is his profit percentage?

Practice 8medium

A trader sells two items. On the first item, he makes a profit of 30%, and on the second item, he makes a loss of 20%. If the cost price of each item is ₹500, what is his overall profit or loss percentage?

Practice 9medium

A retailer buys 40 kg of rice at ₹50 per kg. He sells 30 kg at ₹65 per kg and the remaining at ₹45 per kg. What is his overall profit or loss percentage?

Practice 10medium

A merchant purchases an item for ₹1200. He wants to earn a profit of 40% after giving a discount of 20% on the marked price. What should be the marked price?

Practice 11medium

A shopkeeper marks up goods by 50% above cost price. During a sale, he offers two successive discounts of 10% each. What is his net profit or loss percentage?

Practice 12medium

A vendor buys oranges at ₹8 per dozen and sells them at ₹1 per orange. If he sells 60 oranges, what is his profit percentage?

Practice 13hard

A shopkeeper buys 120 articles at ₹45 per article. He sells 80% of them at ₹60 per article and the remaining at ₹50 per article. What is his overall profit percentage?

Practice 14hard

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 ₹4,800, what is the cost price per unit?

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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