BOMBAY CAMBRIDG GURUKUL

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Bombay Cambridge Gurukul
Profit and Loss
Mathematics
Std VI
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A shopkeeper buys goods at a price and then sells
them to us usually at a higher price.
The price which a shopkeeper pays to buy the
goods is the cost price (C.P.).
The price at which a shopkeeper sells the goods
to his customer is the selling price (S.P.).
(Contd)
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If the shopkeeper sells the goods at a price
higher than the cost price he makes a gain or
profit.
If the shopkeeper sells the goods at a price
lower than the cost price he suffers a loss.
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Often before selling the goods a shopkeeper
spends money in

• transporting goods
• keeping goods in good condition
• Storing the goods in godowns

The money he spends on the above are called
overhead expenses.
The shopkeeper adds these overhead expenses to
the cost price before he sells the goods at the
selling price.
Therefore,
Total Cost Price Original Cost Price Overhead
expenses
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• When selling price is greater than the cost
  price
• the person will earn a profit.(S.P. C.P.)

gt
Selling Price - Cost Price Profit

• When cost price is greater than the selling
  price
• the person will have a loss. (C.P. S.P.)

gt
Cost Price - Selling Price Loss
With the help of above formulae we can calculate
either selling price, cost price, profit or loss.
When there is a profit

• Selling Price Cost Price Profit

• Cost Price Selling Price - Profit

When there is a loss

• Selling Price Cost Price - Loss

• Cost Price Selling Price Loss

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To find Profit /Loss, if C.P. S.P. are given
To find Profit /Loss
Q.1. Juhi bought a windchime for Rs 385
from Archies Gallery. Kim liked it a lot
and asked her to sell it. Jane sold it
to Kim for Rs 415.

• Did Juhi make profit or loss
• in this transaction?
• Calculate the profit or loss.

Cost Price of a wind chime Rs
385 Selling Price of a wind chime Rs 415
Selling Price gt Cost Price , therefore Juhi made
a profit.
Selling Price Cost Price Profit
Rs 415 Rs 385 Rs 30
Ans Therefore the profit earned by Juhi is Rs
30.
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Q.2. Naved bought an umbrella for Rs. 137. After
2 years he sold it for Rs 95.

• Did Naved make a profit or had
• a loss?
• Calculate the profit or loss?

Cost Price of the umbrella Rs 137
Selling Price of the umbrella Rs 95
Cost Price gt Selling Price , therefore Naved had
a loss.
Cost Price Selling Price Loss
Rs 137

Rs 95
Rs 42
Ans Therefore Naved suffered a loss by selling
his old umbrella.
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Can you find out
cost price, if selling price of an old bicycle is
Rs 1975 and the loss on it is Rs 275?
Cost Price Selling Price Loss
Rs 1975 Rs 275
Rs 2250
Ans The cost price of the bicycle is Rs 2250
selling price, if cost price of a flower vase is
Rs 516 and the profit made on it is Rs 96?
Selling Price Cost Price Profit
Rs 516 Rs 96
Rs 612
Ans The selling price of the flower vase is Rs
612.
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Percentage profit or percentage loss is
calculated on the assumption that the cost price
is Rs 100.
profit and loss is always calculated on the
cost price.
We can calculate either selling price, cost
price, profit or loss by using comparison of
ratios method.
Ratio between the cost prices Ratio between the
profits.
Ratio between the cost prices Ratio between the
losses.
Ratio between the cost prices Ratio between the
selling prices.
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To find percentage of profit loss, if C.P.
S.P. are given
To find percentage of profit loss,
Comparison of Ratios Method
Q.1. Tanya bought a Parker pen for Rs 40 and
sold it for Rs 48. Calculate

• the profit or loss.
• the profit or loss.

40
Cost Price of the pen Rs ___
48
Selling Price of the pen Rs ____
48
40
Profit Rs ____ Rs ____
Rs ___
8

• Tanya got a profit of Rs 8 on the cost price of
  Rs 40.

(Contd)
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When the cost price of the pen is Rs 40 the
profit made on it is Rs 8.
When we assume that the cost price is 100, then
let the profit made on it be x.
We can calculate profit by comparing ratios of
two cost prices with the ratios of two profits.
Ratio between the cost prices Ratio between the
profits
100 40
Or
(By cross multiplication)
x 40
100 8
Or

(Contd
12
x 40
100 8
Or

20
100 8
1
Or x
40
5
1
Or x
20
Ans Therefore, Tanya made a profit of 20 by
selling the Parker pen.
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To find profit or loss
Q.1. Mrs. Khanna bought a cupboard for
Rs 1730. She spent Rs 270 on its
transportation. After a few months she
sold it for Rs 2500. Calculate

• the profit or loss.
• profit or loss.

Original Cost Price Rs 1730
Overhead expenses Rs 270
Total C.P. Original C.P. Overhead expenses
Rs 1730 Rs 270
Rs 2000
Therefore, the total cost price of the cupboard
is Rs 2000.
(Contd)
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Selling price Rs 2500
Selling Price Cost Price Profit
Rs 2500 Rs 2000 Rs 500
\ Profit Rs 500
Mrs. Khanna made a profit of Rs 500 on the cost
price of Rs 1730. Let x is the profit on cost
price of Rs 100.
Ratio between the C.P. Ratio between the profits
(Contd)
15
25
1
50
10
25
200
20
2
1
\ x 25
Ans Therefore, Mrs. Khanna made a profit of 25.
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To find S.P., if profit/loss C.P. are given
Q.1. Mr. Raheja bought a camera at Rs 1600.
After one year he paid Rs. 400 on its
repair and sold it at 5 loss. Calculate
the selling price of the camera.
Original cost price of the camera Rs 1600
Overhead expenses (on repair) Rs 400
Total cost price Original cost price Overhead
Expenses
Rs 1600 Rs 400
Total cost price Rs 2000
Mr. Raheja had a loss of 5 by selling the
camera.
It means that if Rs 100 be the cost price, the
selling price is Rs 100 Rs 5 Rs 95
(Contd)
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Let x be the S.P. of the camera.
The ratio between the S.P. The ratio between
the C.P.
x 100 2000 95
20
20 95
1
\ x Rs 1900
Ans Therefore, selling price of camera was Rs
1900.
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To find C.P., if profit/loss S.P. are given
To find C.P.,
Q.1. Rima bought 10 boxes of oranges
from Nagpur. She spent Rs 50 towards
transport. She sold all the 10 boxes of
oranges at Rs 88 per box and earned a
profit of 10. Calculate

• the cost price of each box of oranges?

Selling Price of 1 box of oranges Rs 88
\ Selling Price of 10 boxes of oranges Rs 88
10
\ Selling Price of 10 boxes of oranges Rs 880
(Contd)
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Rima made a profit of 10 by selling oranges at
Rs 88 per box.
It means that if Rs 100 be the cost price then,
selling price is Rs 100 Rs 10 Rs 110.
Rs 880 is the selling price of 10 boxes. Let x
be the cost price of the 10 boxes of oranges.
Ratio between the C.P. Ratio between the S.P.
or x 110 880 100 (By cross
multiplication)
20
80
10
\ x Rs 800
\
1
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Cost price of 10 boxes Rs 800
Rima spent Rs 50 on transportation, therefore the
original cost price will be calculated as follows
Total cost price Original cost price Overhead
expenses
\ Original cost price Total cost price -
Overhead expenses
Rs 750
Cost price at which Rima bought 10 boxes of
oranges is Rs 750.
75
1
Rs 75
Ans Therefore the cost price of each box of
oranges is Rs 75.
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Test Yourself
Jill brought home a poster from her trip to
Himachal Pradesh. She had paid Rs 25 for it. Lina
saw the poster and liked it. Jill gave it to Lina
for Rs 35.
Can you state?

• For how many rupee did Jill buy the poster ?

Ans
Rs 25

• For how many rupee did Jill sell the poster to
  
• Lina ?

Ans
Rs. 35

• Did Jill make a profit on her transaction, or
  suffer
• a loss?

Ans
Jill made a profit on her transactions.
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Test Yourself
Complete the table given below
Loss
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Loss
57
Profit
122
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Let us recap

1. The money at which a shopkeeper buys certain
   goods is called the cost price of the goods.

2. The money at which a shopkeeper sells the
goods is called the selling price of the
goods.
3.Total cost price Original cost price
Overhead Expenses
4. Selling Price - Cost Price Profit
5. Cost Price - Selling Price Loss
6. Selling Price Cost Price Profit
7. Cost Price Selling Price - Profit
8. Selling Price Cost Price - Loss
9. Cost Price Selling Price Loss
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Let us recap
12. Ratio between the cost prices Ratio between
the profits.
13. Ratio between the cost prices Ratio between
the losses.
14. Ratio between the cost prices Ratio between
the selling prices.
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The End
Created by Department of Research Bombay
Cambridge Gurukul