Bank PO

In our daily life and in the world of business we continually encounter transactions involving sales and purchases. Every time such a transaction occurs, it may be observed that there is a seller and a buyer involved. The seller sells things/goods for a certain amount paid by the buyer. The seller, eventually makes some profit or loss in the transaction. This chapter deals with various aspects relating to such transactions of sales and purchases. .

**Cost Price (C****.P)** .

The price at which an article is purchased or manufactured is called its cost price. .

**Selling Price (S****.P)** .

The price at which an article is sold, is called its selling price. .

**Profit**

If the selling price of an article is greater than its cost price, we say that there is a profit (or) gain. .

**Profit = selling price — cost price**

Percentage of profit is always calculated on the cost price of the article. .

When S.P. > C.P. .

(i) Profit = S.P. - C.P. .

(ii) S.P. = C.P. + Profit .

(iii) C.P. = S.P. - Profit .

(iv) Profit % = x 100

(v) Profit = Profit % x C.P. .

(vi) When C.P. and Profit % are given .

S.P. = C.P. x

(vii) When S.P. and profit % are given .

C.P. =

**Loss **

If the selling price of an article is less than its cost price, we say that there is a loss. .

**Loss = Cost Price — Selling Price**

Percentage of loss is always calculated on the cost price of the article. .

When S.P. < C.P. .

(i) Loss = C.P. - S.P. .

(ii) S.P. = C.P. - Loss .

(iii) C.P. = S.P. + Loss .

(iv) Loss % = x 100

(v) Loss = Loss% x C.P. .

(vi) When C.P. and Loss % are given .

S.P. = C.P. x

(vii) When S.P. and Loss % are given .

C.P. =

**Overheads**

All the expenditure incurred towards transportation, repairs, etc (if any) are categorised as overheads. These overheads are always included in the C.P. of the article. .

**Note:** When there are
two articles having the same cost price and if one article is sold at a% profit
and the other is sold at a% loss, then effectively neither profit nor loss is
made. If there are two articles having the same selling price and one is sold
at x% profit and the other is sold at x% loss, effectively, a loss will 2
always be made and the loss percent is%.

**Discount**

These days we know that competition is very high in business. So in order to survive this competition and to boost the sale of goods, the shopkeepers offer reJpates to the customers. The rebate offered is called Discount. .

Discount is always calculated on the Marked Price (M.P.) of the article. .

(i) Discount = M.P. — S. P. .

(ii) Discount % = x 100

(iii) S.P. = M.P. - Discount .

(iv) M.P. = S.P. + Discount .

(v) When M.P and Discount % are given, .

S.P. =

(vi) When S.P. and Discount % are given, .

M.P. =

(vii) If Profit is made,

C.P = M.P. - Discount - Profit .

(viii) If Loss is made,

C.P = M.P. - Discount + Loss .

**Successive Discounts**

When a series of discounts are given we call them Successive Discounts. .

**Note:** When an article
is sold after two Successive Discounts of p% and q%, then the final selling
price

=

Suppose an item is sold after successive discounts of p%, q% and r% then its final selling price is given by

Marked price x

For example when two successive discounts of 10% and 20% are given, then the selling price

=

Let the M.P. be 100, S.P. = = 72

Effective Discount = M.P. - S.P. = 100 - 72 = 28% .

The combined value of the two discounts = 10 + 20 = 30%

We observe that effective discount, 28% is less than 30%

**Note:** The effective
discount obtained after successive discounts is always less than a discount
whose percentage equals the sum of the successive discount percentages offered
on an article. In other words, the effective discount due to successive
discounts of p%, q% and r% is always less than (p + q+ r)%. .

If the selling price of an article is Rs.81, loss is 10%, then the cost price is .

Given that S.P. = Rs.81 .

% of loss = 10%

Let C.P. be Rs.x .

\ Loss = (x - 81)

We have, % of loss = (100)

10 = 100

&⇒ x = 10x - 810

&⇒ 9x = 810

&⇒ x = 90

\ C.P = Rs.90 .

If an article is sold at 19% profit instead of 12% profit, then the profit would be Rs.105 more. What is the cost price? .

Let the cost price of an article be Rs.x. .

**\**** **(19% of x) - (12% of x) = 105

= 105

&⇒ 7x = 105 x 100

&⇒ x = 1500

\ Cost Price = Rs.1500 .

If a trader sold two cars each at Rs.3520 and gains 12% on the first and loses 12% on the second, then his profit or loss percent on the whole is .

S.P. of each car is Rs.3520, he gains 12% on the first car and loses 12% on the second car. .

In this case, effect will be loss and percentage of loss is given by

= = 1.44%

A sold an article to B at 10% profit and B sold it to C at 15% loss. If difference in the purchasing prices of A and C is Rs.58.5, find the cost price of B. .

Let A purchased the article for Rs.100. Then the C.Ps of B and C are Rs.110 and Rs.93.5 respectively. .

Let 6.5% be equal to 58.5. 110% will be equal to .

? = i.e. Rs.990.

The selling price of 12 articles is equal to the cost price of 15 articles. Find the profit/loss percentage. .

Let the cost price of each article be Rs.1. .

Cost price of 12 articles = Rs.12. .

Selling price of 12 articles = Cost price of 15 articles = Rs.15. .

Profit is made in selling 12 articles since their selling price exceeds their cost price. Profit made in selling 12 articles = Rs.3. .

Profit percentage = 25%. .