Basic Formulas of Profit and Loss
The following are the formulas relevant to Profit and Loss questions:
| S.No | To Calculate/Relation | Formulas |
|---|---|---|
1 |
Profit or Gain |
Selling price – Cost Price |
2 |
Loss |
Cost Price – Selling Price |
3 |
Profit/Loss percentage |
((Profit or Loss)/Cost Price) x 100 |
4 |
Relation between Marked Price, Discount, and Selling price |
Marked Price – Discount = Selling Price |
5 |
Profit Percentage for False Weight |
[(True weight – false weight)/ false weight] x 100. |
Quick Tip: Do you know? You can learn Profit and Loss formulas quickly if you first understand the fundamental concepts of Profit and Loss.
FAQsFAQs
How do you benefit from learning Profit and Loss formulas?
One of the significant benefits of understanding Profit and Loss formulas is the capability to quickly and accurately address simple formula-based questions.
How to remember Profit and Loss formulas for a longer time?
Following are the techniques you can use to memorise Profit and Loss formulas:
For a start, you can start understanding the concepts of Profit and Loss. It will help you find out why a formula is used.
Keep a separate piece of paper and write down each formula on the Profit and Loss topic you need to memorise.
Write down and examine each Profit and Loss formula, but this time with intervals. Write the equation, then take a 2-minute break to think about it before writing it again.
Your memory is more likely to associate with the formula you want to remember if you use it more often. Solve the problems employing the formula.
Visualise and repeat out loud the formula occasionally. Create Profit and Loss formulas flashcards to help with this. You can also use these flashcards while practicing the Profit and Loss questions.
The formula should be written down and posted somewhere you will see daily. They'll be subconsciously imprinted into your memory.
How conceptual understanding of Profit and Loss topic helps in remembering its formulas?
Conceptual understanding will help you to make sense of the Profit and Loss formulas. Conceptual understanding is concentrated on describing why things happen as opposed to how to make them happen. They help you understand the true motive for employing the Profit and Loss formulas.
