1. Profit and loss statement

2. Cost Price(CP) + Profit(P) = Selling Price (S.P)
Profit means, your Selling Price (S.P) is more than your Cost Price(C.P)
This means, you sold something for more price than what you purchased it for.
The extra price that you sold it for is called as Profit
Cost Price(CP) + Profit(P) = Selling Price (S.P)
We can say that the difference between Selling Price and Cost Price is Profit
Profit(P) = Selling Price (SP) ̶ Cost Price(CP)

3. Cost Price(CP) ̶ Loss (L) = Selling Price (S.P)
Loss means, your Cost Price (C.P) is more than your Selling Price(S.P)
This means, you sold something for less price than what you purchased it for.
The lesser price that you sold it for is called as Loss
Cost Price(CP) ̶ Loss (L) = Selling Price (S.P)
We can say that the difference between Cost Price and Selling Price is Loss
Loss(L) = Cost Price(CP) - Selling Price (SP)

4. Example 1:
Mohan bough a Shirt for Rs 575 and later sold it for Rs 625.
Find profit/loss and its value.
Solution
Given: Cost Price=Rs 575, Selling Price=Rs 625
To find: Profit/Loss value
Since Selling Price>Cost Price, there is profit.
We know that Profit = Selling Price - Cost Price.
∴ Profit = = 50
Ans: Profit = Rs 50
Profit = SP ̶ CP
Loss = CP ̶ SP

5. Example 2:
Vinod bought a cycle for Rs 3500 and after some years sold it for 2200.
Find profit/loss and its value.
Solution
Given: Cost Price = Rs 3500, Selling Price = Rs 2200
To Find: Profit/Loss value
Since Selling Price<Cost Price, there is Loss
We know that Loss = Cost Price - Selling Price.
∴ Loss = 3500 – 2200 = 1300
Ans: Loss = Rs 1300
Profit = SP ̶ CP
Loss = CP ̶ SP

6. Try these
Priya bought a bike for Rs and after a year sold it for Rs Find the profit/loss and its value.
Mohan bought television set for Rs 5500 and later sold it for Find the profit/loss and its value.