1. Profit and loss - basics

2. Profit and Loss
Raja, the fruit stall owner buys lot of fruits from the wholesale market in cheap price
The price at which Raja buys the fruit at the market is called the Cost Price(C.P.).
Raja then sells the fruits in his shop.
The price at which he sells the fruit in his stall is called the Selling Price (S.P.).

3. From the price list we can say that the Selling price(SP) of the apples and the mangoes in the shop are greater than their respective Cost price(CP) in the whole sale market.
The shopkeeper Raja gets some amount in addition to the cost price. This additional amount is called the profit. So when Selling price(SP) > Cost price(CP) then there is profit
Therefore Selling Price (SP)= Cost Price(CP) + Profit(P)
Hence Profit(P) = Selling Price(SP) – Cost Price(CP)
For apples , Cost Price(CP)=6, Selling Price (SP)=8
Profit(P) =SP-CP=8-6=2
So the shopkeeper has a profit of Rs 2 while selling apples

4. From the price list we can see the selling price of the banana and orange in the shop is lesser than their respective cost price in the whole sale market.
The shopkeeper Raja looses some money compared to Cost price. This amount is called the Loss. So when Selling price(SP) < Cost price(CP) then there is loss
Therefore Selling Price (SP)= Cost Price(CP) - Loss(L)
Hence Loss(L) = Cost Price(CP) - Selling Price (SP)
For banana , Cost Price(CP)=3, Selling Price (SP)=2
Loss(L) =CP-SP=3-2=1
So the shopkeeper has a loss Rs 1 while selling banana

5. 20 50 50>20 i.e SP>CP hence Profit
Find Profit/Loss
Cost Price Selling Price Profit/Loss
(CP) (SP) (P/L)
>20 i.e SP>CP hence Profit
<10 i.e SP<CP hence Loss
>12 i.e SP>CP hence Profit
<20 i.e SP<CP hence Loss