Class 5 Profit and Loss
Profit and Loss
A store owner purchases a product for Rs. 785 and sells it for Rs. 880. He got Rs. 95 as gain, which is known as profit.
Profit = Selling Price – Cost Price
Going forward, we will use S.P as selling price and C.P as cost price.
At times, the same store owner must sell his old products at a lesser price than the Cost price. For
example, he purchased a product for Rs. 700 and sold it at Rs. 625. He incurred a loss of Rs. 75.
Loss = Cost Price – Selling Price
If, C.P > S.P, then Loss = C.P – S.P
If, S.P > C.P, then Profit = S.P – C.P
Profit / Loss Percentage
Most of the time we intend to know the amount of profit or loss a business is making. To find out the percentage of loss or profit we must follow below mentioned steps.
1. Find out the loss/profit
Example 1. Bob bought a toy for Rs. 200 and sold it for Rs. 280. Find out his percentage of gain.
Solution. C.P of the toy = Rs. 200
S.P of the toy = Rs. 280
Profit = S.P – C.P = Rs. 280 – Rs. 200 = Rs. 80
Percentage of profit
So, the amount of profit Bob made is 40%.
Example 2. John bought a cycle for Rs. 7500 and he sold it for Rs. 2500 after using it for 4 years. Find out the percentage of loss he incurred.
Solution. C.P of the cycle = Rs. 7500
S.P of the cycle = Rs. 2500
Loss incurred = C.P – S.P = Rs. 7500 – Rs. 2500 = Rs. 5000
Percentage of loss
So, the percentage of loss incurred by John is 66.7%
Find S.P When C.P and Percentage of Profit / Loss is Known
To find out selling price when cost price and profit/loss are known, we must follow below mentioned steps.
1. Amount of profit/loss = (C.P X Percentage of profit)/loss
2. Selling Price = C.P + Amount of Profit
Selling Price = C.P – Amount of Loss
Example 1. A shopkeeper bought a television for Rs. 10000 and he sold it at profit of 25%. What was
the selling price of the television?
Solution. C.P of the television = Rs. 10000
Profit = 25%
Amount of profit = Rs. 10000 X 25%
S.P = C.P + Profit Amount
= Rs. 10000 + Rs. 2500 = Rs. 12500
So, the selling price of the television is Rs. 12500.
Example 2. A man bought a car for $ 25000 and he used it for ten years. If he sold the car at a
loss of 35%, then what is the selling price of the car?
Solution. C.P of the car = $ 25000
Loss = 35%
Amount of loss = $ 25000 X 35%
S.P = C.P - Loss amount = $ 25000 - $ 8750 = $ 16250
So, the selling price of the car is $ 16250.
Find C.P When S.P and Percentageof Profit / Loss are Known
To find out cost price when selling price and percentage profit/loss are known, we must follow below
C.P + (C.P X Percentage of Profit) = S.P
C.P - (C.P X Percentage of Profit) = S.P
Example 1. A store sold a shirt for a price Rs. 1500 at a profit of 20%. Find out the cost price
of the shirt.
Solution. Let's assume C.P of the shirt is ‘Y’
Y + (Y x 20%) = 1500
So, the cost price of the shirt is Rs. 1250.
Example 2. During a festival time, a dealer sold lots of bike at Rs. 44000 per piece. If the dealer incurred
12% loss per bike, then what is the cost price per bike?
Solution. Say C.P of the bike is ‘A’
A – A X 12% = 44000
So, the cost price of the bike is Rs. 50000.
Class-5 Profit and Loss WorksheetProfit & Loss Test - 1 Profit & Loss Test - 2
Class-5 Profit and Loss Worksheet
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