Profit and Loss for SSC: Concepts, Formulas & Practice Questions

Profit and Loss Concept

Profit and Loss is a basic yet important topic in Quantitative Aptitude, especially for competitive exams like SSC CGL, SSC CHSL, IBPS PO, SBI PO, and other government exams. It helps in understanding how much profit or loss is made in a transaction based on the cost price (CP) and selling price (SP) of a product. If the SP is more than the CP, it’s a profit; if the SP is less, it’s a loss. This guide covers the basic meaning, key formulas, smart shortcuts, and 30+ exam-style questions with answers to help you revise faster and solve more accurately.

What is Profit and Loss Concept?

Profit and Loss is a fundamental concept in mathematics used to calculate how much gain or loss is made in a transaction. It is based on two key values Cost Price (CP) and Selling Price (SP).

• If the Selling Price is higher than the Cost Price, the difference is called Profit.
• If the Selling Price is lower than the Cost Price, the difference is called Loss.

Why Is It Important in SSC Exams?

In SSC CGL, CHSL, MTS, and even Railway exams, Profit and Loss questions often appear in the following formats:

• Direct formula-based calculations
• Successive profit/loss
• Marked price and discount scenarios
• False weight or dishonest dealing
• Word problems with multiple layers (e.g., reverse profit, tax, etc.)

Important Profit and Loss Formulas

These formulas are essential for quickly solving profit, loss, discount, and marked price questions in SSC and other competitive exams.

Formula	Formula
Profit	SP − CP
Loss	CP − SP
Profit %	(Profit ÷ CP) × 100
Loss %	(Loss ÷ CP) × 100
SP (in case of profit)	CP × (100 + Profit%) ÷ 100
SP (in case of loss)	CP × (100 − Loss%) ÷ 100
CP (in case of profit)	SP × 100 ÷ (100 + Profit%)
CP (in case of loss)	SP × 100 ÷ (100 − Loss%)
Discount	MP − SP
Discount %	(Discount ÷ MP) × 100
Marked Price (MP)	SP + Discount
Successive Profit/Loss %	x + y + (xy ÷ 100) (for two gains/losses)

Profit and Loss – Important Terms

Understanding key terms like Cost Price, Selling Price, Profit, and Loss is essential to solve questions accurately in this topic. These basics are often tested in SSC and other competitive exams.

1. Cost Price (CP):
The price at which a product is bought.

2. Selling Price (SP):
The price at which the product is sold.

3. Profit (or Gain):
If the selling price is more than the cost price, the difference is called Profit.
Formula: Profit = SP – CP

4. Loss:
If the selling price is less than the cost price, the difference is called Loss.
Formula: Loss = CP – SP

Tips and Tricks to Stay Ahead in the Profit and Loss Section

Understanding Profit and Loss is more than just memorizing formulas. To get ahead in the competition, you need a mix of strong basics, smart shortcuts, and consistent practice.

• Know Your Formulas
  Make sure you are thorough with all the key formulas like Profit = SP – CP, Loss = CP – SP, and Profit/Loss % formulas. These are the base of almost every question.
• Convert Percentages into Fractions Quickly
  Memorize common percentage-to-fraction conversions (e.g., 25% = 1/4, 12.5% = 1/8). This will help you solve many questions faster without using a calculator.
• Use Ratio Tricks When Possible
  Some questions can be solved faster using ratios instead of lengthy calculations. Try to spot such patterns and apply them.
• Practice Reverse Calculations
  In many SSC-style questions, you are given SP or Profit % and asked to find CP. Practice solving such problems backward to save time.
• Avoid Unit Mistakes
  Always check if the question is asking in rupees, paise, or percentage. Losing marks on silly unit errors is common but avoidable.
• Be Extra Careful with Marked Price and Discount Questions
  These can be tricky. Make sure you apply the discount before calculating the profit or loss based on CP.
• Time Yourself During Practice
  Solving questions correctly is good, but solving them quickly is what matters in the exam. Use timers during your mock tests.
• Analyze Previous Year Questions
  Go through SSC CGL and CHSL previous year papers. You’ll notice that similar types of questions repeat. Practice those formats well.
• Use Smart Approximations
  Don’t spend too much time calculating exact values when approximation can help you eliminate wrong options faster.
• Revise Daily
  Even if you know the topic well, revise key formulas and solve 5–10 questions daily to keep your speed and accuracy sharp.

Download Important Quant Formulas Ebook

Common Terms in Profit and Loss

• Marked Price (MP): The price printed on a product.
• Discount: Reduction on MP, often offered during sales.
• Successive Discounts: Multiple discounts applied one after the other.
• False Weight: Used in dishonest dealings to earn hidden profits.
• VAT / Sales Tax: Extra amount added during purchase, sometimes asked in advanced questions.

Practice Profit and Loss Questions for Upcoming SSC Exams

Prepare for SSC CGL, CHSL, and other competitive exams with these important Profit and Loss questions. These practice problems will help improve your speed and accuracy in the Quant section.

Q1. The cost price of an article is ₹866. If it is sold at a profit of 35%, what is the selling price?
A) ₹1186
B) ₹1157
C) ₹1179
D) ₹1169
Correct Answer: D

Q2. The cost price of an article is ₹594. If it is sold at a loss of 5%, what is the selling price?
A) ₹570
B) ₹583
C) ₹557
D) ₹564
Correct Answer: D

Q3. The cost price of an article is ₹177. If it is sold at a profit of 6.25%, what is the selling price?
A) ₹215
B) ₹199
C) ₹180
D) ₹188
Correct Answer: D

Q4. The cost price of an article is ₹698. If it is sold at a profit of 6.25%, what is the selling price?
A) ₹729
B) ₹764
C) ₹742
D) ₹749
Correct Answer: C

Q5. The cost price of an article is ₹962. If it is sold at a profit of 12.5%, what is the selling price?
A) ₹1074
B) ₹1082
C) ₹1089
D) ₹1110
Correct Answer: B

Q6. A trader marks his goods 20% above cost price and allows 10% discount. What is his gain percentage?
A) 8%
B) 10%
C) 9%
D) 7%
Correct Answer: C

Q7. A man buys 5 kg of apples for ₹120 and sells them at ₹27 per kg. What is his profit percentage?
A) 10%
B) 12.5%
C) 15%
D) 20%
Correct Answer: D

Q8. An item is sold at 10% loss. If it had been sold for ₹40 more, there would have been 10% profit. What is the cost price?
A) ₹180
B) ₹200
C) ₹190
D) ₹210
Correct Answer: B

Q9. A person bought a cycle for ₹1500 and sold it at a gain of 20%. What is the selling price?
A) ₹1750
B) ₹1780
C) ₹1800
D) ₹1850
Correct Answer: C

Q10. A man sells two items for ₹500 each, one at 25% gain and the other at 25% loss. What is the overall gain or loss?
A) No profit, no loss
B) 6.25% gain
C) 6.25% loss
D) 12.5% loss
Correct Answer: C

Q11. A shopkeeper bought 80 pens at ₹12 each. He sold 60 pens at ₹15 each and the remaining at ₹10 each. What is his profit or loss percentage?
A) 5% loss
B) 2.5% gain
C) 5% gain
D) 7.5% gain
Correct Answer: C

Q12. A dealer sells a bike at a loss of 5%. Had he sold it for ₹250 more, he would have gained 5%. What is the cost price?
A) ₹2000
B) ₹2500
C) ₹2250
D) ₹2750
Correct Answer: B

Q13. A man sells a shirt at a 10% discount on the marked price and earns a profit of 20%. What is the ratio of cost price to marked price?
A) 2:3
B) 4:5
C) 5:6
D) 3:4
Correct Answer: B

Q14. A product is sold for ₹960, with a loss of 4%. What is the cost price?
A) ₹1000
B) ₹980
C) ₹960
D) ₹920
Correct Answer: A

Q15. If an article is sold at a profit of 20% and the profit is ₹120, what is the cost price?
A) ₹500
B) ₹600
C) ₹720
D) ₹1000
Correct Answer: B

Q16. A trader sells an item at 15% profit. If he had sold it for ₹40 more, his profit would have been 20%. What is the cost price?
A) ₹600
B) ₹800
C) ₹700
D) ₹750
Correct Answer: B

Q17. A dealer bought a mobile for ₹8000. He wants to earn 25% profit after allowing 10% discount. What should be the marked price?
A) ₹10000
B) ₹11111.11
C) ₹12000
D) ₹11250
Correct Answer: B

Q18. A merchant bought a product and sold it at 20% profit. If he had bought it at 10% less and sold it for ₹60 more, his profit would have been 40%. What is the original cost price?
A) ₹300
B) ₹400
C) ₹500
D) ₹450
Correct Answer: C

Q19. A man sells an article at 20% profit. If he had sold it at 5% loss, he would have earned ₹150 less. Find the cost price.
A) ₹500
B) ₹600
C) ₹750
D) ₹1000
Correct Answer: D

Q20. A trader mixes 2 types of sugar worth ₹60/kg and ₹90/kg in the ratio 2:1. He sells the mixture at ₹80/kg. What is his profit percentage?
A) 10%
B) 15%
C) 20%
D) 25%
Correct Answer: C

Q21. A product is marked at ₹750. A shopkeeper allows successive discounts of 10% and 5%. What is the final selling price?
A) ₹637.5
B) ₹645
C) ₹640
D) ₹638.25
Correct Answer: A

Q22. A shopkeeper earns a profit of 12% after allowing a discount of 20% on the marked price. What is the cost price if the marked price is ₹600?
A) ₹520
B) ₹480
C) ₹528
D) ₹530
Correct Answer: C

Q23. A trader gives 25% discount on marked price and still gains 20%. If the marked price is ₹400, what is the cost price?
A) ₹300
B) ₹250
C) ₹320
D) ₹280
Correct Answer: A

Q24. A dealer allows 20% discount on an article and still makes a profit of 25%. If he gains ₹50, what is the cost price?
A) ₹160
B) ₹180
C) ₹200
D) ₹220
Correct Answer: C

Q25. By selling an article for ₹720, a shopkeeper gains 20%. Had he sold it for ₹660, what would have been the percentage gain or loss?
A) 10% gain
B) 10% loss
C) 5% loss
D) 5% gain
Correct Answer: D

Q26. A person sells two articles at ₹990 each. On one he gains 10%, on the other he loses 10%. What is the overall gain or loss?
A) No gain no loss
B) 1% loss
C) 2% loss
D) 5% loss
Correct Answer: C

Q27. A trader sells 3 articles for ₹100 each which cost him ₹100 in total. What is his overall profit or loss percentage?
A) 0%
B) 33.33% profit
C) 50% profit
D) 66.66% profit
Correct Answer: B

Q28. A dishonest dealer professes to sell his goods at cost price but uses a false weight of 950 gm instead of 1 kg. What is his profit percentage?
A) 5.26%
B) 6.25%
C) 4.76%
D) 5%
Correct Answer: A

Q29. A man bought two watches for ₹5000. He sold one at 20% gain and the other at 12% loss. If he made no profit or loss overall, what was the cost price of the first watch?
A) ₹2400
B) ₹2600
C) ₹3000
D) ₹2800
Correct Answer: C

Q30. A shopkeeper sells an article at ₹864 and gains 20%. Had he sold it at a loss of 20%, he would have sold it for how much less?
A) ₹288
B) ₹288.5
C) ₹288.6
D) ₹288.8
Correct Answer: A

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Advanced Concepts: Successive Profit/Loss, False Weight, Discount, Tax

Some SSC exam questions test advanced scenarios involving multiple transactions, dishonest practices, and taxation. Mastering these tricks improves accuracy and boosts speed in Tier 2-level problems.

Successive Profit Example

If profit = 20% and then another 10% profit on SP:
Net Profit % = 20 + 10 + (20×10)/100 = 32%

False Weight Trick

A dishonest dealer uses 950g instead of 1kg.
Profit % = (1000 – 950) ÷ 950 × 100 = 5.26%

Tax Problem Example

Final price = ₹5954, VAT = 14.5%
List Price = 5954 × 100 ÷ 114.5 = ₹5200

Key Takeaways

• Focus on understanding core formulas rather than memorizing solutions.
• Learn how to reverse-calculate CP or SP using % gain/loss.
• Successive profit/loss and discount types are frequently tested in SSC Tier 2.
• Always pay attention to unit conversion, multiple conditions, and false weight questions.
• Consistent practice is the only way to build speed and accuracy.

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