# Tips And Tricks And Shortcuts For Profit And Loss

## Tips and Tricks and Shortcuts Of Profit and Loss

The price at which product or commodity have been bought known ans Cost Price.

The price at which a product or service is sold to the known as Selling Price.

### Tips and Tricks & Shortcuts for Profit and Loss

- The profit and loss concept play and important and fundamental role in realm of accounting.
- Here in tips and tricks and shortcuts of profit and loss will definitely help in the solving the questions very efficiently.
- First learn the the formulas and how to find Profit and Loss on this page here.
- 8 out of 10 Questions in any exam will be one of the following formats –

### Tips & Tricks & Shortcuts to solve type of Profit & Loss

**Seller has two Articles for same price, but first article is sold at x% profit and other at x% loss. Total Profit/Loss incurred by him is not 0%**

**Way to solve this question is –**

Apply direct formula Loss = ( \frac{x}{10})^{2}%

**Proof with example -> Let us assume the articles were sold at Rs1200, and 20% profit in case 1 is made and 20% loss in case 2 is made.**

SP in case 1(Profit) – 1200

Thus CP = ( \frac{100}{100 + Gain} × SP = ( \frac{100}{120}) × 1200 = ( \frac{5}{6}) × 1200 = 1000

SP in case 2(Loss) – 1200

Thus CP = ( \frac{100}{100 – Loss}) × SP = ( \frac{100}{80}) × 1200 = ( \frac{5}{4}) × 1200 = 1500

Total SP = 1200 + 1200 = 2400

Total CP = 1000 + 1500 = 2500

Loss = ( \frac{CP – SP}{CP}) × 100 = ( \frac{100}{2500}) × 100 = \frac{100}{25}= 4%

**Also from direct formula above = ( \frac{20}{10}) ^{2}**

In such cases always, loss is incurred.

**Where no CP or SP is given. But whole concept is about Percentages.**

**Way to Solve Type 2 Questions**

Assume the CP to be 100 and then solve the whole problem.

**Example. 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?**

Let us assume CP = Rs. 100.

Then Profit = Rs. 80 and selling price = Rs. 180.

The cost increases by 20% → New CP = Rs. 120, SP = Rs. 180.

Profit % = \frac{60}{120} * 100 = 50%.

Therefore, Profit decreases by 30%.

**There are two Articles and you have to calculate total loss or profit.**

**Way to solve type 2 Problem**

Now these problems are generally easy. But the whole point of solving is not to even use a pen and solve in 20 seconds.

**Example. A man bought some toys at the rate of 10 for Rs. 40 and sold them at 12 for Rs. 60. Find his gain or loss percent**

Cost price of 10 toys = Rs. 40 → CP of 1 toy = Rs. 4.

Selling price of 12 toys = Rs. 60 → SP of 1 toy = Rs. \frac{160}{12} = 5

Therefore, Gain = 5 – 4 = 1.

Gain percent = \frac{1}{4} * 100 = 25%

Now in your mind you must do value 4 and 5 and \frac{1}{4} = 25%.

**CP of y items is same as SP of x items and Profit or Loss of some percentage is made.**

**Way to solve type 4 Question**

**The cost price of 10 pens is the same as the selling price of n pens. If there is a loss of 40%, approximately what is the value of n?**

**Solution:**

Let the price of each pen be Re. 1.

Then the cost price of n pens is Rs. n and

the selling price of n pens is Rs. 10.

Loss = n-10.

Loss of 40% → ( \frac{loss}{CP}) × 100 = 40

Therefore, \frac{n – 10}{n} × 100 = 40 → n = 17 (approx)

**If the price of an item increases by r% , then the reduction in consumption so that expenditure remains the same is**

**or**

**If the price of a commodity decreases by r% then increase in consumption , so as not to decrease expenditure on this item is**

**Way to solve type 5 Questions**

Just apply the following two formulas

Case 1

Case 2

**A dishonest dealer claims to sell his goods at cost price ,but he uses a weight of lesser weight .Find his gain%.**

**Way to solve type 6 Problem**

Apply the following formula directly

Gain % = \frac{true weight – false weight}{false weight} × 100

**Example. Shopkeeper bought a product for Rs1000 per kg and is selling that at the same price. However he uses, a weighing scale that gives scale of 1kg for every 800gms. What is his profit?**

Answer will be \frac{1000 – 800}{800}*100 = ( \frac{2}{8}) × 100 = 25% profit.

**These questions will not be there for exams like AMCAT and Cocubes etc but for eLitmus.**

**A shopkeeper sells an item at a profit of x % and uses a weight which is y % less .find his total profit**

A dishonest dealer sells goods at x % loss on cost price but uses a gms instead of b gms to measure as standard, his profit or loss percent :-

Note :- profit or loss will be decided according to sign .if +ive it is profit ,if –ve it is loss .

**Case-1: When dealer sells product at profit but alters weight**

Profit% or loss% = [100+gain%][ \frac{1000}{altered weight} ] – 100

**Case-2: When dealer reduces weight in terms of percentage and earns profit **

**Example:** A shopkeeper sells an item at a profit of 20 % and uses a weight which is 20% less. Find his total profit.

Applying the first formula

( \frac{20+20}{100 – 20}) × 100 = 50%

**Case-3: When dealer sells goods at loss on cost price but uses less weight.**

**Note :-** profit or loss will be decided according to sign . If +ive it is profit ,if –ve it is loss.**Example:** A dishonest dealer sells goods at 10% loss on cost price but uses 20% less weight. Calculate profit or loss percent.

**Solution:**

Apply formula: Case 2 Formula

{ \frac{20-10}{100-20}} x 100

= \frac{25}{2}%

Here sign is positive so there is a profit of 12.5%

**Case 4**

**Example:** A dishonest dealer sells products at 10% loss on cost price but uses 2 gm instead of 4 gm . what is his profit or loss percent?

**Solution:**

Apply formula :

[100-10] \frac{4}{2}-100 = 80%

**Case 4**

* Note :-* Profit or loss will be decided according to sign. If +ive it is profit ,if –ve it is loss .

**Example:** A shopkeeper uses 940 gm in place of one kg. He sells it at 4% profit. What will be the overall profit or loss?

Solve this on your own, answer is 10.6%

**Read Also** – ** How to solve profit and loss questions quickly**