Profit and Loss

Profit and loss is the record of the details regarding the expenses and revenue in a particular period. The investors and creditors consider the profit and loss to understand the risk level before they join any business. The statement also signifies the loss and profit which have to be taxed for IRS use. 

Thus, the investors can easily decide if a business is doing well or not through Profit and Loss. The traders can gauge whether buying a company’s share is worth it. This important information is mentioned in the balance sheet of the company. 

It also reports the assets of a company, shareholder’s equity and statement of cash flow, and liabilities. So, any imbalance in profit and loss means that there are problems in the company’s operations. 

1. The profit and loss account of a company signifies the following. 

1. 1. Profit and loss occurred from the sale of the company’s assets
   2. Profit and loss faced by the business or company 
   3. Total capital put by the company 
   4. None of the above

Answer 2. Profit and loss faced by the business or company

2. The expenditure of the revenue of a company or a business is recorded in which of the following? 

1. 1. Balance sheet 
   2. Trading account
   3. Account of profit and loss
   4. None of these

Answer 3. account of profit and loss

3. A person sells the car to another person at a loss of 10%. If the second person sells the car for Rs. 54000 and receives a 20% gain, what’s the actual price of the car? 

1. 1. Rs. 60000
   2. Rs. 25000
   3. Rs. 75000
   4. Rs. 50000

Answer 4. Rs. 50000

4. If the selling price of 12 books is equivalent to the cost price of 18 copies, then calculate the profit per cent. 

1. 1. 40%
   2. 50%
   3. 44%
   4. 20%

Answer 2. 50%

5. The cost price of 20 shoes is equivalent to the selling price of x shoes. What is the value of x if the profit percentage is 25%? 

1. 1. 25
   2. 20
   3. 19
   4. 16

Answer 4. 16

6. Increase of debit in the profit and loss is also called _____. 

1. 1. Gross Profit
   2. Gross Loss
   3. Net Profit 
   4. Net Loss

Answer 4. Net Loss

7. The selling price of two bicycles each is Rs. 3990, one with a gain of 54% and another with a loss of 5%. What is the loss and gain transaction on the total transaction? 

1. 1. No gain and no loss
   2. 2.55 loss 
   3. 0.25% loss
   4. 2.55% gain

Answer 3. 0.25% loss

8. Rick bought cold drinks of Rs. 56000. Then he sold 1/3rd of the total purchase to a 40% loss. How much profit does he need to earn on the remaining cold drinks to cover the loss? 

1. 1. 20%
   2. 45%
   3. 60%
   4. 40%

Answer 1. 20%

9. In a clothing store, the profit percentage is 320% of the price. If its selling price remains the same and costs increase by up to 25%, then what percentage of the selling price will become profit? 

1. 1. 100%
   2. 20%
   3. 70%
   4. 50% 

Answer 3. 70% 

10. The balance between the loss and profit account is transmitted to _________. 

1. 1. Cash Flow Statement 
   2. Trial Balance
   3. Trading Account 
   4. Balance Sheet 

Answer 4. Balance Sheet 

11. A book store sells 40 books at a profit of 10%. It earns a profit of 20% from the sale of these 40 books. However, he got 160 books at a price of 100. What profit should the owner sell the other books? 

1. 1. 70/3%
   2. 190/52% 
   3. 100/3% 
   4. 30% 

Answer 1. 70/3% 

12. The capital expenditure is a part of which of the following statement? 

1. 1. Trial balance
   2. Balance Sheet 
   3. Account of Profit and Loss
   4. Trading Account 

Answer 2. Trading account

13. The reduction in the price of rice by 20% helps Rita to buy 6 kg more at the price of 240. Calculate the actual price of sugar per kg. 

1. 1. Rs. 12 per kg 
   2. Rs. 5 per kg 
   3. Rs. 10 per kg 
   4. Rs. 15 per kg

Answer 3. Rs. 10 per kg

14. Ankit wants to receive a profit of 15% on the sale of tea. He buys 120 kg of tea at Rs. 24 kg and then mixes it with 180 kg of tea, which he bought at the price of Rs. 28 on per kg. At what price does he sell the mix of tea? 

1. 1. Rs. 9108
   2. Rs. 8159
   3. Rs. 9674
   4. Rs. 8500

Answer 1. 9108

15. The owner of the plot faces a loss of 15% and sells it at 18700. What should be the price at which the plot should be sold to receive a profit of 15%? 

1. 1. Rs. 25800
   2. Rs. 25300
   3. Rs. 21500
   4. Rs. 2600

Answer 2. Rs. 25300

16. What is the profit if A sells glass bottles at a 6% profit to B and B again sells the same glass bottles to C with a profit of 9%? 

1. 1. 15.54%
   2. 15%
   3. 14%
   4. 15.45% 

Answer 1. 15.54%

17. Rima sold an AC to Natasha with a profit of 25%. Then, Natasha faced a loss of 15% by selling the AC to Rohit. Rima spent an amount of Rs. 50000 for that AC. So what was the price of that AC when Rohit bought it? 

1. 1. Rs. 60000
   2. Rs. 53125
   3. Rs. 85000
   4. Rs. 52500

Answer 2. 53125

18. Alice suffered a 20% loss by selling the vase at the price of 2880. If she wants to gain a profit of 20%, what should be its selling price? 

1. 1. Rs. 3500
   2. Rs. 4000
   3. Rs. 4320
   4. Rs. 5600

Answer 3. Rs. 4320

19. A trader has 200 kg of rice available, and he sells some amount at a profit of 10% and then the rest at 25% profit. As a whole, he gains a profit of 15%. What is the total quantity of rice sold at a profit of 25%? 

1. 1. 95 kg
   2. 67 kg
   3. 35 kg
   4. None of the above

Answer 2. 67 kg

20. Junaid buys a motorbike at a price of Rs. 5000 and spends around Rs. 4000 for its repairing. What will be the gain percentage if he also sells his bicycle at Rs. 60000?

1. 1. 11(1/9)% 
   2. 12%
   3. 4/7% 
   4. 3% 

Answer 1. 11(1/9)%

21. Ritesh sells stickers at a price of 20 stickers for Rs. 1. How many stickers did he buy at the price of Rs. 1 if he earns a profit of 20%? 

1. 1. Rs. 36
   2. Rs. 89
   3. Rs. 16
   4. Rs. 24

Answer 4. Rs. 24

22. Sheena buys toffees at a price of Rs. 4 each. She again buys the same amount of toffees at Rs. 5. Then, she mixes them in a basket and sells them at Rs. 4. What will she get profit or loss? Also, how much profit or loss will she get? 

1. 1. Loss- 100/9%
   2. Profit- 100/9%
   3. Loss- 110/8%
   4. Profit- 119/6%

Answer 2. Profit 100/9%

23. Ritu bought a 30 kg amount of wheat at a price of Rs. 22 per kg. She also bought 20 kg of wheat at a price of 24 kg. Then, she mixed them together. So, what should be the price of wheat per kg to gain a profit of 25%? 

1. 1. Rs. 30
   2. Rs. 25
   3. Rs. 32
   4. Rs. 28

Answer 4. Rs. 28

24. A girl pays an amount of Rs. 369 for an article priced at Rs. 600 and got two discounts. At first, he got a discount of 25%, so what is the second amount? 

1. 1. 18% 
   2. 10%
   3. 20%
   4. None of the above

Answer 1. 18%

25. If Jim sells a match ticket at a price of Rs. 340 with a 25% profit, so what is the actual price of the ticket? 

1. 1. Rs. 255
   2. Rs. 280
   3. Rs. 272
   4. Rs. None of the above

Answer 3. Rs. 272

26. Geeta sells a cupboard at around 14 below the cost price. If she received rs. 2086 extra, then she could have made a 14% profit. What is the actual cost price of the particular cupboard? 

1. 1. Rs. 14500
   2. Rs. 7500
   3. Rs. 7450
   4. Rs. 7000

Answer 3. Rs. 7450

27. A man sells an electronic item with a discount rate of 25%. At what percentage upon the cost price she should sell that same item to gain a profit of 25% upon the listed price? 

1. 1. Rs. 66.667
   2. Rs. 25
   3. Rs. 40
   4. Rs. 33.333

Answer 1. 66.667

28. A man buys 45 oranges at the cost of Rs. 40 and faces a loss of 20%. How much price does he need to sell 24 oranges to gain a profit of 20%? 

1. 1. Rs. 20
   2. Rs. 18
   3. Rs. 32
   4. Rs. 20

Answer 3. 32