Profit loss percentage

Money is truly a difficult idea to communicate to children without providing them with an opportunity to gain first-hand experience. Parents frequently take their children to the supermarket in order to teach them about the prices marked on each item as well as the computation of the overall price. Later on, children learn about the concept of a discount off the cost price, as well as the concept of comparing costs before making a purchase. Comparing pricing is also a type of profit and loss because it teaches you how to save money by purchasing the same thing at a lower price that is comparatively less expensive.

Profit and Loss

The term ‘Profit and Loss’ refers to a concept that has evolved from diverse applications to real-life problems that occur virtually every day in our lives. When a good is repurchased at a higher price than it was originally purchased, a profit is realised. In the same way, if the goods are repurchased at a lower price, the seller suffers a financial loss.

Profit and loss are terms that are used in business.

We have come across the terms profit and loss on numerous occasions. While profit denotes a gain, an advantage, or an advantage of some sort, loss denotes the polar opposite of profit, implying that there has been an expenditure as opposed to a gain.

• Price at which a thing is purchased is referred to as the cost price (CP). Additionally, overhead charges, transportation costs, and other costs may be included. For example, suppose you purchased a refrigerator for Rs 10,000 and spent Rs 2000 on shipping and Rs 500 on set-up expenses. As a result, the overall cost price is equal to the sum of all of the expenses incurred, which is Rs 12,500.

• It is the amount at which a thing is sold that is referred to as the selling price (SP). It may be greater than, equal to, or less than the product’s cost price. It may also be less than the product’s cost price. Consider this scenario: A shopkeeper purchases a chair for Rs 500 and sells it for Rs 600. In this case, the cost of the chair is Rs 500 and the selling price is Rs 600.

• Profit (P): When a product is sold for a price that is higher than its cost price, the seller makes a profit. Profit (P): If, for example, a plot is purchased for Rs 50,000 and then sold for Rs 1,50,000 three years later, the investor makes a profit of Rs 1 lakh on the investment.

• Selling at a loss (L): When a product is sold at a price that is less than its cost price, the seller incurs financial loss.

For example, if a phone is purchased for Rs 20,000 and then sold for Rs 12,000 a year later, the seller will have suffered a loss of Rs 8000.

• Profit Percentage (P percent): This is the percentage of profit earned on the cost price of a product or service.

• Loss Percent (L percent): This is the proportion of the cost price that has been lost.

This formula is used in mathematics to find the market price of a commodity and to determine how profitable a business is. It is also used to compute the price of a commodity on the stock market. Every product has two prices: a cost price and a selling price, respectively. Based on the values of these prices, we may determine if a certain product has made a profit or suffered a loss, and we can determine which. The phrases cost price, fixed, variable, and semi-variable cost, selling price, marked price, list price, margin, and so on are all discussed in this section, as well as others. In addition, we will learn about the profit and loss % calculation in this section.

For example, if the value of the selling price of a commodity is greater than the cost price of the commodity, the shopkeeper makes a profit; if the cost price of the commodity is greater than the selling price, the shopkeeper makes a loss. In this post, we will cover profit and loss principles, as well as strategies for resolving problems that are based on these notions.

Formulas for Calculating Profit and Loss

Now, let’s look for the profit and loss formulas, respectively.

The profit or gain is equal to the difference between the selling price and the cost price.

The difference between the cost price and the selling price is the loss.

Profit or gain equals the difference between the selling and cost prices.

Loss is equal to the difference between the cost and selling prices.

The formula for calculating the profit and loss percentage is as follows:

100 times (Profit/Cost Price) Equals 100 times profit percentage

Loss percentage is (Loss / Cost price) multiplied by 100

Exemplifications of Profit and Loss

Assume that an employee of the shopkeeper purchases a fabric for Rs.100 and sells it for Rs.120. The employee makes a net profit of Rs.20/-.

If a salesman purchases a piece of textile material for Rs.300 and then sells it for Rs.250/-, he has suffered a loss of Rs.50/- on the transaction.

Let us suppose Ram purchases a football for Rs. 500/- and sells it to a buddy for Rs. 600/-; in this case, Ram has made a profit of Rs. 100 with a gain percentage of 20%.

Profit and loss are frequently observed in real-world situations, as illustrated by the examples above, which we can learn from.

Profit and Loss Arrangements

You have studied up until this point how to compute profit and loss, as well as the percentage of each. For the time being, let us study some strategies or formulas for solving math issues that involve gain and loss.

Profit, P, equals SP minus CP; SP>CP Loss, L, equals CP minus SP; CP>SP

P percent = (P/CP) x 100 L percent = (L/CP) x 100 P percent = (P/CP) x 100

A CP = 100/(100 + Percent)/100 is equal to an SP = (100 – L percent)/100 is equal to a CP 

CP = 100/(100 + Percent) is equal to an SP CP = 100/(100 + Percent) x SP CP = 100/(100 + L percent) is equal to an SP MP – SP Discount = x SP Discount

SP = MP -the discount

P percent = [(True weight – false weight)/ false weight x 100] will be the profit percentage in the case of the fake weight.

If there are two successful profits, say m percent and n percent, then the net percentage profit equals (m+n+mn)/100, which is the sum of the two successful profits.

When the profit is m percent and the loss is n percent, the net percent profit or loss is calculated as follows: (m-n-mn)/100 = (m-n-mn).

It is calculated that the true cost price of a product is: CP = [100x100xP/(100+m)(100+n)], where P is the percentage of profit made on the product sold at first and then at n percent profit on the product sold at first.

 In the event of a loss, the constant CP = [100 x 100 x P/(100-m)(100-n)] is used.

Assuming that the percentages P and L are equal, then P = L and the percent loss is equal to P2/100.

Conclusion

It is necessary to bring together all of a business’s income sources and deduct all of the business’s expenses that are directly related to generating revenue in order to accurately calculate and produce a profit and loss statement at the end of each financial year. When a corporation produces a profit and loss statement, sometimes referred to as an income statement, it will provide facts about the financial performance of the company over a specified period of time. Please inform us of the current financial situation if possible.