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SBI Clerk Basic Profit & Loss

Study Material — 3 PYQs (2020–2020) · Concept Notes · Shortcuts

SBI Clerk Basic Profit & Loss is a frequently tested subtopic — 3 previous year questions from 2020–2020 papers are included below with concept notes, key rules and shortcut tricks.

3 PYQs
2020–2020
14 Practice
MCQs
10 Key Points
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Previous Year Questions

SBI Clerk Basic Profit & Loss — Past Exam Questions

3 questions from actual SBI Clerk papers · all shown free · click option to reveal solution

Exam Q 12020Previous Year Pattern

A shopkeeper buys a pen for ₹12 and sells it for ₹15. What is his profit percentage?

Exam Q 22020Previous Year Pattern

A book is marked at ₹250. A shopkeeper gives a discount of 10% on the marked price. If his cost price was ₹180, what is his profit percentage?

Exam Q 32020Previous Year Pattern

A merchant sells a shirt at ₹480 and incurs a loss of 20%. What was the cost price of the shirt?

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 retailer buys 50 kg of rice at ₹40 per kg and sells it at ₹50 per kg. What is the total profit?

Practice 2easy

If a trader sells an item for ₹450 and makes a profit of ₹90, what is the cost price of the item?

Practice 3easy

A vendor buys oranges at ₹8 per dozen and sells them at ₹1 per orange. 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 book is sold for ₹264 at a profit of 10%. What was the cost price of the book?

Practice 6medium

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 ₹800 each, what is the overall profit or loss percentage?

Practice 7medium

A trader bought 100 kg of rice at ₹40 per kg. He sold 60 kg at ₹50 per kg and the remaining at ₹35 per kg. What is his overall profit or loss percentage?

Practice 8medium

A vendor buys oranges at ₹5 per dozen and sells them at ₹0.50 per orange. What is his profit percentage?

Practice 9medium

A shopkeeper marks up goods by 60% above cost price. After giving a discount of 25% on the marked price, he still makes a profit. If the cost price is ₹500, what is the selling price?

Practice 10hard

A trader buys goods at ₹40 per kg. Due to spoilage, 10% of the goods are lost. He sells the remaining goods at ₹50 per kg and makes a profit of ₹1200. How many kg of goods did he originally buy?

Practice 11hard

A vendor buys oranges at ₹5 per dozen. He sells them at ₹0.50 per orange. If he sells 360 oranges and makes a profit of ₹30, how many dozens did he originally buy?

Practice 12hard

A shopkeeper buys 120 articles at ₹15 per article. He sells 80% of them at ₹22 per article and the remaining at ₹18 per article. What is his overall profit percentage?

Practice 13hard

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 14hard

A shopkeeper sells an article at ₹1200 and incurs a loss of 20%. To make a profit of 10%, at what price should he have sold the article?

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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