Profit and Loss
Profit and loss related questions appear in most of the entrance and competitive exams like CLAT, NLU, UPSE, SSB, BBA Etc. These questions involve calculation of profit or loss, Cost price or Selling price of an article.
While solving these questions the challenge arises when value of Cost is given and percentage of profit is given as per the selling price or vice versa.
In such situation students normally calculate using equation method which consumes their valuable time. This can be done by simply remembering following four equations
20% of Cost Price = 16.66% of Sale Price
25% of Cost Price = 20% of Sale Price
33.33% of Cost Price = 20% of Sale Price
50% of Cost Price = 33.33% of Sale Price
For example a trader selling goods costing 80,000 at a profit of 20% on sale. Now in this question percentage is given as per selling price while information regarding selling price is missing. As we know 25% of Cost Price = 20% of Sale Price
So the profit will be equal to 25% of Cost price which is 80,000 X 25% = 20,000
Selling price = Cost Price + Profit
So Selling price will be 80,000 + 20,000 = 1,00,000.
Verification: 1,00,000 (Selling Price) X 20% = 20,000
Students must practice these online mock test and online test series for CLAT and NLU to secure goods ranks. These MCQ and Mock test cover all the important questions and concepts related Profit and Loss.