<p>Hi everyone!</p>    <p>Profit and Loss is one of the most important and frequently asked topics in the Quantitative Aptitude section of the <a href="https://ssc.gov.in/">SSC</a> CGL Tier 1 exam. This topic not only strengthens your conceptual understanding but also helps in solving many real-life problems related to trade and transactions. Mastering the concept of Profit and Loss can significantly boost your overall score in the exam.</p>    <p>Let’s begin our study with the basics and gradually move towards solving exam-level questions!</p>    <p>To understand Profit and Loss, we first need to revisit the concept of Percentage Increase and Decrease — but with a slightly different perspective.</p>    <h2 id="content-id-127797-0"><strong>Profit and Loss - Percentage Increase or Decrease</strong></h2>    <p>This is a key concept in solving profit and loss problems.</p>    <p>It refers to the ratio (expressed as a percentage) of the actual increase or decrease in a quantity relative to its original value.</p>    <p>Percentage Increase = (Actual Increase / Original Quantity) × 100</p>    <p>Percentage Decrease = (Actual Decrease / Original Quantity) × 100</p>    <h3><strong>Example:</strong></h3>    <p>A family's rice consumption increases from 60 kg/month to 75 kg/month.</p>    <p>Actual increase = 75 - 60 = 15 kg</p>    <p>Percentage increase = (15 / 60) × 100 = 25%</p>    <p>Now that we understand percentage change, let’s move on to Profit and Loss.</p>    <h2 id="content-id-127797-1"><strong>Basic Profit and Loss Concepts</strong></h2>    <p>Let’s look at a simple example to understand how profit and loss is calculated in a trade.</p>    <p><img loading="lazy" alt="Profit and Loss Basic Concepts" src="https://www.quantsir.com/admin/assets/uploads/ckeditor/Profit_and_Loss_Basic_Concepts.webp" style="height:225px; width:400px"></p>    <h3><strong>Example 1: Profit</strong></h3>    <p>A man buys an article for Rs. 300 and sells it for Rs. 900.</p>    <p>Profit = Selling Price (SP) - Cost Price (CP)</p>    <p>⇒ Profit = 900 - 300 = Rs. 600</p>    <h3><strong>Example 2: Loss</strong></h3>    <p>Aman buys an article for Rs. 900 and sells it for Rs. 300.</p>    <p>Loss = CP - SP</p>    <p>⇒ Loss = 900 - 300 = Rs. 600</p>    <h2 id="content-id-127797-2"><strong>Profit and Loss - Key Terminologies</strong></h2>    <ul>   <li>Cost Price (CP): The price at which an article is bought or produced.</li>   <li>Selling Price (SP): The price at which the article is sold.</li>   <li>Profit: If SP > CP, then Profit = SP - CP</li>   <li>Loss: If CP > SP, then Loss = CP - SP</li>  </ul>    <p>Whenever an article is sold, there is either a profit or a loss depending on the difference between the selling price and the cost price.</p>    <h2 id="content-id-127797-3"><strong>Profit and loss - Formulas</strong></h2>    <p>In everyday life, we usually talk about profit and loss in percentage terms, not just the absolute amount. For example, we see offers like “15% off” or “20% sale.” Understanding profit/loss as a percentage helps compare deals and assess trade value more effectively.</p>    <h3><strong>Profit/Loss Percentage Formula:</strong></h3>    <p>Profit/Loss (%) = [(Selling price - Cost price) × 100] / Cost price = [(SP - CP) × 100]/CP</p>    <ul>   <li>If SP - CP > 0, it's a Profit</li>   <li>If SP - CP < 0, it's a Loss</li>  </ul>    <p>Note: Profit and loss is always calculated on the cost price (CP) unless the question says otherwise.</p>    <h4><strong>Example 1: Calculating Profit Percentage</strong></h4>    <p>Q: A person buys a toy for Rs. 50 and sells it for Rs. 75. What is the profit percentage?<br>  A:</p>    <p>SP = Rs. 75, CP = Rs. 50</p>    <p>Profit = SP - CP = 75 - 50 = Rs. 25</p>    <p>Profit (%) = (25 / 50) × 100 = 50%</p>    <h4><strong>Example 2: Finding the Selling Price</strong></h4>    <p>Q: Find the selling price if the cost price is Rs. 80 and the profit is 20%.<br>  A:<br>  We use the formula:</p>    <p>SP = (100 + Profit %/100) × CP = (100 + 20/100) × 80 = 1.2 × 80 = Rs. 96</p>    <h2 id="content-id-127797-4"><strong>Profit and Loss - Rearranged Formulas (Derived from the Main Formula)</strong></h2>    <ul>   <li>When there is Profit:</li>  </ul>    <p>SP = (100 + Gain%/100) × CP</p>    <ul>   <li>When there is Loss:</li>  </ul>    <p>SP = (100 − Loss%/100) × CP</p>    <ul>   <li>Finding CP from SP and Gain/Loss:</li>  </ul>    <p>CP = 100/(100 + Gain%) × SP (for profit)</p>    <p>CP = 100/(100 − Loss%) × SP (for loss)</p>    <p>These formulas are just rearrangements of the original formula and don't need to be memorized.</p>    <h4><strong>Example 3: Effective Profit When Quantity Is Reduced</strong></h4>    <p>Q: The MRP of a 1 kg salt packet is Rs. 33, set to earn a 50% profit. The shopkeeper sells it for Rs. 27.50 but removes 250 g from each packet. What is the effective profit percentage?</p>    <p>Solution:</p>    <p>CP (based on 50% profit):</p>    <p>CP = 100/(100 + 50) × 33 = 100/150 × 33 = Rs.22</p>    <p>Quantity sold = 750 g</p>    <p>CP of 750 g = 0.75 × 22 = Rs. 16.5</p>    <p>SP of 750 g = Rs. 27.5</p>    <p>Effective Profit (%) = (27.5 - 16.5)/16.5 times 100 = 66.67%</p>    <p>The concepts of Profit and Loss are not only vital for SSC <a href="https://ssc.gov.in/for-candidates/cgl-exam/xsd91hjkshdk92xk">CGL </a>Tier 1 but also form the basis for several other topics in Quantitative Aptitude. We hope this study guide has helped you build a strong foundation. Keep practicing consistently with our <a href="https://www.quantsir.com/topic-wise-test">Topic-wise tests</a>, <a href="https://www.quantsir.com/pyq-papers">PYQs </a>and stay connected with <a href="https://www.quantsir.com/">us</a> for more exam-focused notes and problem-solving strategies!</p>  

<p>Hi everyone!</p>

<p>Profit and Loss is one of the most important and frequently asked topics in the Quantitative Aptitude section of the <a href="https://ssc.gov.in/">SSC</a> CGL Tier 1 exam. This topic not only strengthens your conceptual understanding but also helps in solving many real-life problems related to trade and transactions. Mastering the concept of Profit and Loss can significantly boost your overall score in the exam.</p>

<p>Let&rsquo;s begin our study with the basics and gradually move towards solving exam-level questions!</p>

<p>To understand Profit and Loss, we first need to revisit the concept of Percentage Increase and Decrease&mdash;but with a slightly different perspective.</p>

<h2><strong>Profit and Loss - Percentage Increase or Decrease</strong></h2>

<p>This is a key concept in solving profit and loss problems.</p>

<p>It refers to the ratio (expressed as a percentage) of the actual increase or decrease in a quantity relative to its original value.</p>

<p>Percentage Increase = (Actual Increase / Original Quantity) &times; 100</p>

<p>Percentage Decrease = (Actual Decrease / Original Quantity) &times; 100</p>

<h3><strong>Example:</strong></h3>

<p>A family&#39;s rice consumption increases from 60 kg/month to 75 kg/month.</p>

<p>Actual increase = 75 - 60 = 15 kg</p>

<p>Percentage increase = (15 / 60) &times; 100 = 25%</p>

<p>Now that we understand percentage change, let&rsquo;s move on to Profit and Loss.</p>

<h2><strong>Basic Profit and Loss Concepts</strong></h2>

<p>Let&rsquo;s look at a simple example to understand how profit and loss is calculated in a trade.</p>

<p><img loading="lazy" alt="Profit and Loss Basic Concepts" src="https://www.quantsir.com/admin/assets/uploads/ckeditor/Profit_and_Loss_Basic_Concepts.webp" style="height:225px; width:400px" /></p>

<h3><strong>Example 1: Profit</strong></h3>

<p>A man buys an article for Rs. 300 and sells it for Rs. 900.</p>

<p>Profit = Selling Price (SP) - Cost Price (CP)</p>

<p>&rArr; Profit = 900 - 300 = Rs. 600</p>

<h3><strong>Example 2: Loss</strong></h3>

<p>Aman buys an article for Rs. 900 and sells it for Rs. 300.</p>

<p>Loss = CP - SP</p>

<p>&rArr; Loss = 900 - 300 = Rs. 600</p>

<h2><strong>Profit and Loss - Key Terminologies</strong></h2>

<ul>
	<li>Cost Price (CP): The price at which an article is bought or produced.</li>
	<li>Selling Price (SP): The price at which the article is sold.</li>
	<li>Profit: If SP &gt; CP, then Profit = SP - CP</li>
	<li>Loss: If CP &gt; SP, then Loss = CP - SP</li>
</ul>

<p>Whenever an article is sold, there is either a profit or a loss depending on the difference between the selling price and the cost price.</p>

<h2><strong>Profit and loss - Formulas</strong></h2>

<p>In everyday life, we usually talk about profit and loss in percentage terms, not just the absolute amount. For example, we see offers like &ldquo;15% off&rdquo; or &ldquo;20% sale.&rdquo; Understanding profit/loss as a percentage helps compare deals and assess trade value more effectively.</p>

<h3><strong>Profit/Loss Percentage Formula:</strong></h3>

<p>Profit/Loss (%) = [(Selling price - Cost price) &times; 100] / Cost price = [(SP - CP) &times; 100]/CP</p>

<ul>
	<li>If SP - CP &gt; 0, it&#39;s a Profit</li>
	<li>If SP - CP &lt; 0, it&#39;s a Loss</li>
</ul>

<p>Note: Profit and loss is always calculated on the cost price (CP) unless the question says otherwise.</p>

<h4><strong>Example 1: Calculating Profit Percentage</strong></h4>

<p>Q: A person buys a toy for Rs. 50 and sells it for Rs. 75. What is the profit percentage?<br />
A:</p>

<p>SP = Rs. 75, CP = Rs. 50</p>

<p>Profit = SP - CP = 75 - 50 = Rs. 25</p>

<p>Profit (%) = (25 / 50) &times; 100 = 50%</p>

<h4><strong>Example 2: Finding the Selling Price</strong></h4>

<p>Q: Find the selling price if the cost price is Rs. 80 and the profit is 20%.<br />
A:<br />
We use the formula:</p>

<p>SP = (100 + Profit %/100) &times; CP = (100 + 20/100) &times; 80 = 1.2 &times; 80 = Rs. 96</p>

<h2><strong>Profit and Loss - Rearranged Formulas (Derived from the Main Formula)</strong></h2>

<ul>
	<li>When there is Profit:</li>
</ul>

<p>SP = (100 + Gain%/100) &times; CP</p>

<ul>
	<li>When there is Loss:</li>
</ul>

<p>SP = (100 &minus; Loss%/100) &times; CP</p>

<ul>
	<li>Finding CP from SP and Gain/Loss:</li>
</ul>

<p>CP = 100/(100 + Gain%) &times; SP (for profit)</p>

<p>CP = 100/(100 &minus; Loss%) &times; SP (for loss)</p>

<p>These formulas are just rearrangements of the original formula and don&#39;t need to be memorized.</p>

<h4><strong>Example 3: Effective Profit When Quantity Is Reduced</strong></h4>

<p>Q: The MRP of a 1 kg salt packet is Rs. 33, set to earn a 50% profit. The shopkeeper sells it for Rs. 27.50 but removes 250 g from each packet. What is the effective profit percentage?</p>

<p>Solution:</p>

<p>CP (based on 50% profit):</p>

<p>CP = 100/(100 + 50) &times; 33 = 100/150 &times; 33 = Rs.22</p>

<p>Quantity sold = 750 g</p>

<p>CP of 750 g = 0.75 &times; 22 = Rs. 16.5</p>

<p>SP of 750 g = Rs. 27.5</p>

<p>Effective Profit (%) = (27.5 - 16.5)/16.5 times 100 = 66.67%</p>

<p>The concepts of Profit and Loss are not only vital for SSC <a href="https://ssc.gov.in/for-candidates/cgl-exam/xsd91hjkshdk92xk">CGL </a>Tier 1 but also form the basis for several other topics in Quantitative Aptitude. We hope this study guide has helped you build a strong foundation. Keep practicing consistently with our <a href="https://www.quantsir.com/topic-wise-test">Topic-wise tests</a>, <a href="https://www.quantsir.com/pyq-papers">PYQs </a>and stay connected with <a href="https://www.quantsir.com/">us</a> for more exam-focused notes and problem-solving strategies!</p>


<p>Mastering the concept of Profit and Loss can significantly boost your overall score in the exam. Let&rsquo;s begin our study with the basics and gradually move towards solving exam-level questions!</p>  

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Mastering the concept of Profit and Loss can significantly boost your overall score in the exam. Let’s begin our study with the basics and gradually move towards solving the exam-level questions!

Profit and Loss - Percentage Increase or Decrease

Profit and Loss - Rearranged Formulas (Derived from the Main Formula)

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