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Profit & loss is an important concept asked in SBI Clerk Mains exam. Not only questions on this topic are asked as word problems, but this profit & loss concept is tested in Data Interpretation & Data Sufficiency as well. Having sound knowledge in this topic will easily help you get a handful of marks. It’s extremely important to be thorough with the concept, definitions & formulae of Profit & Loss. In this free PDF, we are providing you with the conceptual knowledge of Profit & Loss, Formulas, Tricks, Examples & Questions for Practice. We suggest you to download the free PDF and practice the examples as well as the questions given for practice as well. If you want to practice more questions, click below to solve topic-wise and a lot of other quizzes.

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Let’s get started with the definitions:

SBI Clerk 2020 Mains- Profit & Loss Definitions

  • MRP (Maximum Retail Price): The price which is printed on an object. Discounts are generally calculated on MRP.
  • Discount: Discount is deduction from the cost of something. It is usually denoted in percentage and is calculated on MRP.
  • Selling Price: Selling price is the final price at which seller and buyer agree. It is generally calculated after deducting discount from MRP. S.P. = MRP – Discount
  • Cost Price: It is the price at which the seller bought the product.
  • Profit/ Loss: Profit/ loss is calculated on the difference between selling price and cost price. The profit/ loss percentage is always calculated on cost price.

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SBI Clerk 2020 Mains- Profit & Loss Concept, Formulas, Tricks, Examples & Questions for Practice- Download Free PDF

To help these terms better, let us consider an example:

SBI Clerk 2020 Mains- Profit & Loss Examples

Profit & Loss- Example 1

Swami bought a phone for which the MRP is Rs 5000. He negotiated with the seller and asked for a discount of 25%. The seller agreed on a discount of 20%. After a month he resold the toy at the MRP to Ananth. Ananth used the phone for some time and sold it to Hari after giving a discount of Rs 3000.

Cost price for the seller: Not mentioned
Discount given by the seller: 5000*20/100
Selling Price for the seller: 5000*(100-20)/100 = 4000
Profit for the seller: Cost Price is not mentioned, so the seller’s profit can’t be calculated

Cost Price for Swami = Selling Price for the seller = 4000
Selling Price for Swami = MRP = 5000
Profit for Swami = 5000 – 4000 = 1000
Profit Percentage for Swami = 1000*100/4000 = 25%

Cost Price for Ananth = Selling Price for Swami = 5000
Discount given by Ananth = 3000
Discount percentage given by Ananth = 3000*100/5000 = 60%
Selling Price for Ananth = 2000
Loss for Ananth = 2000 – 5000 = -3000 (Minus sign denotes loss)
Loss percentage for Ananth = 3000*100/5000 = 60%

Hope the above example & its interpretation in terms of definitions have given you a good understanding of the basic concept. Let us sail through some other examples to help you understand the concept better.

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Profit & Loss-Example 2

In a transaction, the profit percentage is 80% of the cost. If the cost further increases by 20% but the selling price remains the same, how much is the decrease in profit percentage points?

Let’s assume CP to be 100
Profit Percentage: 80%
SP will be 180
New CP: 120
New profit: 180 – 120 = 60
Profit percentage: 60*100/120 = 50%
Thus, the profit decreases by 30 percentage points.

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Profit & Loss-Example 3

Alok bought a second-hand printer for Rs 1750 and spent Rs (x + 50) on its maintenance. He then sold it to Akul for Rs 2,520 making a profit of 20%. Find the value of x.

SP for Alok: 2520
Profit%: 20
CP for Alok after maintenance: 2520*100/(100+20) = 2100
Maintenance: 2100 – 1750 = 350
Value of x: 300

Profit & Loss-Example 4

Ved buys 12 toys for Rs 10 and sells 10 toys for Rs 12. Find his profit percentage.

CP of 12 toys: 10
SP of 10 toys: 12
SP of 12 toys: 12/10*12 = 14.4
Profit% = (14.4-10)*100/10 = 44%

SBI Clerk 2020 Mains- Profit & Loss Tricks

After doing substantial practice on these types of questions, you will realize the below:

  • To calculate the Selling Price at 10% profit you need to multiple the Cost Price by 1.1. 1.1 is nothing but (100 + 10)/100.
  • To calculate the Selling Price at 10% loss you need to multiple the Cost Price by 0.9. 0.9 is nothing but (100 – 10)/100.
  • To calculate the Cost Price at 10% profit you need to divide the Selling Price by 1.1. 1.1 is nothing but 100/(100+10).
  • To calculate the Cost Price at 10% loss you need to divide the Selling Price by 0.9. 0.9 is nothing but 100/(100-10).

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SBI Clerk 2020 Mains- Profit & Loss Concept, Formulas, Tricks, Examples & Questions for Practice- Download Free PDF

SBI Clerk 2020 Mains- Profit & Loss- Questions for Practice

1. The cost price of 15 kg of wheat is equal to the selling price of 10 kg wheat, the cost price of 18 kg of rice is equal to the selling price of 15 kg rice, and the cost price of 15 kg of millet is equal to the selling price of 20 kg millet. If the ratio of cost price of wheat, rice and millet (per kg) is 4:5:6 respectively, then find the overall percentage profit or loss on selling 1 kg wheat, 2 kg rice and 1 kg millet.

a. 12.5%

b. 15%

c. 10%

d. 20%

e. 17.5%

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2.  Both Rajesh and Ramesh bought the same article for Rs. 4800. Rajesh marked the article 60% above the cost price and sold it after two consecutive discounts of 25% and x%, whereas Ramesh marked the article 30% above the cost price and sold it after a single discount of x%. Find the value of ‘x’ if the difference in their selling prices is Rs. 384.

a. 25%

b. 12%

c. 15%

d. 20%

e. 10%

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For Solution, Download the Free PDF

3. A shopkeeper marked an article at 80% above the cost price and sold it after two consecutive discounts of 25% and 20%. Another shopkeeper marked the same article 30% above the cost price and sold it after a single discount of 20%. Find the cost price of the article if the difference between the selling prices of article by both the shopkeepers is Rs. 480.

a. Rs. 10,000

b. Rs. 12,000

c. Rs. 15,000

d. Rs. 13,000

e. Rs. 14,000

For Solution, Download the Free PDF

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4. Cost price of two items X and Z is the same. The shopkeeper marked item X at 50% above the cost price and item Z at 40% above the cost price. A discount of 12% and 25% is given on item X and Z, respectively. Total profit earned was Rs. 3,367. Find the cost price of item X.

a. Rs. 9,600

b. Rs. 9,100

c. Rs. 9,400

d. Rs. 8,600

e. Rs. 8,800

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5. A shopkeeper sold an article for Rs. (x – 60) and thereby makes a loss of 20%. Had he sold the same article for Rs. (x + 30), he would have made same percentage of profit. Find the selling price of article to earn a profit of 40%.

a. Rs. 365

b. Rs. 345

c. Rs. 305

d. Rs. 315

e. Rs. 325

For Solution, Download the Free PDF

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SBI PO 2020 Prelims- Profit & Loss- Questions for Practice

1. Vikrant purchased 30 kg of rice at the rate of Rs. 20 per kg and 40 kg at the rate of Rs. 35 per kg. He mixed the two. At what price per kg should he sell the mixture to make 40% profit in the transaction?

a. Rs. 25 per kg

b. Rs. 30 per kg

c. Rs. 40 per kg

d. Rs. 20 per kg

e. Rs. 35 per kg

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2. If a shopkeeper sold 25 articles of same type at the cost price of 17 articles of same type, then find the profit/loss percent earned by the shopkeeper.

a. 28%

b. 32%

c. 36%

d. 40%

e. 24%

For Solution, Download the Free PDF

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3. A shopkeeper marked an article at 40% above cost price, and sold it after 2 consecutive discounts of 10% and 20%. In this transaction he made a profit of Rs. 416. Find the profit earned by the shopkeeper, if he had sold the article at a profit of 12%.

a. Rs. 6,240

b. Rs. 5,240

c. Rs. 6,840

d. Rs. 5,840

e. Rs. 6,160

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4. A shopkeeper sold an article at 42% profit. Had he sold the article at 15% loss; he would have earned Rs. 969 less. Find the cost price of the article.

a. Rs. 1200

b. Rs. 1700

c. Rs. 2000

d. Rs. 2200

e. Rs. 1500

For Solution, Download the Free PDF

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5. A shopkeeper bought an article of cost price of Rs. 600, marked up by 50% and sold it for Rs. 720. Find the percentage discount offered by the shopkeeper.

a. 30%

b. 20%

c. 15%

d. 40%

e. 25%

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Remember, now when it’s still not sure when SBI Clerk 2020 Mains will be held, is important that you start solving questions which are closest to the examination level and see how well do you do. Review your attempts with the help of detailed solutions and take your performance to another level.

Happy Learning!

 

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2 Comments

  1. Deepika ba

    Please important question…..pdf send my email inbox

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