Page 158 - New Medley 4 Semester 2 PDF (Merged)

Selling Price (S.P.): The price at which a shopkeeper sells the goods or
items to the customers is called the selling price (in short S.P.).

Profit or Gain: If the selling price is higher than the cost price of an item,
then there is a profit, i.e., if S.P. > C.P., there is a profit.

Thus, Profit = S.P. – C.P.

Loss: If the selling price is lower the cost price of an item, then there is
a loss,

i.e., if S.P. < C.P., there is a loss.

Thus, Loss = C.P. – S.P.

Nobody wants to have loss but sometimes one is forced to sell the goods
at a lower price in unavoidable circumstances. The main reasons for a loss

may be, the item is outdated, got spoilt or is defective, etc.

Let us explain the above terms with some examples.

Example 1: A shopkeeper buys an item for `260 and sells it for
`280. Find his profit or loss.

Solution: Here, cost price of the item = `260

and selling price of the item = `280

Here, S.P. > C.P., there is a profit.

Hence, Profit = S.P. – C.P. = `280 – `260 = `20

Example 2: Mr Kumar purchased a scooter for `45000 and had to

sell it for `40500. Did he make a profit or loss, and by
how much?

Solution: Here, cost price of the scooter = `45000

and selling price of the scooter = `40500

Here, C.P. > S.P., there is a loss.

Hence, Loss = C.P. – S.P.

= `45000 – `40500 = `4500

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