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Profit and Loss is one of the important topics of Quantitative Aptitude Section of every competitive exams. It is a very basic and commonly used concept in our day to day life as well.

Profit and loss is the branch of basic mathematics which deals with the study of profit and loss made in a business transaction. The profit and loss account is fundamentally a summary of the trading transactions of a business and shows whether it has made a profit or loss during a particular period of account.

Profits and loss is mainly used in finance and business transactions. Some basic and important profit and loss formulas are:

I. S.P. = Selling Price
II. C.P. = Cost Price

1. Profit = Selling Price – Cost Price

P = SP – CP

2. Loss = Cost Price – Selling Price

P = CP – SP

3. Profit% = (Profit/Cost Price) 100%

4. Loss% = (Loss/Cost Price) 100%

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