Basic Terms You Must Know

- Cost Price (CP): The price at which an item is purchased.
- Selling Price (SP): The price at which an item is sold.
- Profit (P): When SP > CP, Profit = SP – CP.
- Loss (L): When CP > SP, Loss = CP – SP.
- Profit Percentage: (Profit / CP) × 100.
- Loss Percentage: (Loss / CP) × 100.

Vedic Math Tricks for Profit and Loss
- Quick Percentage Calculations

Vedic Math Simplifies Percentage Calculations. For Example:

- To find 12.5% of a number, divide it by 8.
- To find 37.5% of a number, multiply it by 3/8.
- Profit and Loss Using Ratios

If the profit percentage is P%, then: SP / CP = (100 + P) / 100

CP / SP = 100 / (100 + P)

- Successive Profit and Loss

When There Are Multiple Profits Or Losses: Net Effect = a + b + (a × b / 100)

- Dishonest Dealers and Faulty Weights

If a Dealer Uses a Faulty Weight: Profit % = (Error / (True Weight - Error)) × 100 Real-Life Examples and Applications

- Discounts and Marked Price

Marked Price (MP): The original price of an item. Selling Price (SP): MP – Discount.

- Profit and Loss in Business Partnerships

When two partners invest different amounts for the same time: Profit Sharing Ratio = Investment Ratio

Shortcuts for Competitive Exams

- Direct Formula for Profit/Loss Percentage

Profit % = ((SP - CP) / CP) × 100 Loss % = ((CP - SP) / CP) × 100
- Finding CP When SP and Profit % Are Given

CP = (SP × 100)



/ (100 + Profit %)
- Finding SP When CP and Loss % Are Given

SP = (CP × (100 - Loss %)) / 100

Practice Problems with Solutions

Problem 1

A shopkeeper sells a toy at a 10% profit. If the CP is ₹500, find the SP.

Solution: SP = CP × (1 + Profit % / 100)

SP = 500 × (1 + 10 / 100) = 500 × 1.10 = ₹550

Problem 2

A trader sells a watch at a 20% loss. If the SP is ₹1600, find the CP.

Solution: CP = SP / (1 - Loss % / 100)

CP = 1600 / (1 - 20 / 100) = 1600 / 0.80 = ₹2000

Problem 3

A dishonest dealer sells goods at a 10% profit but uses a faulty weight of 900g instead of 1kg. Find his actual profit %.

Solution: Profit % = (Error / (True Weight - Error)) × 100

Profit % = (100 / (1000 - 100)) × 100 = 11.11%

By mastering these tricks and techniques, you’ll be able to solve profit and loss problems in seconds. Happy learning!

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📌 ? Profit and Loss Made Easy: Tricks, Notes & Mock Test for Competitive Exams & Placements (Bengaluru)
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