Wednesday, May 15, 2019

Profit And Loss

Profit & Loss 


1) :- When S.P (Selling Price) > C.P. (Cost          Price) -----------> (Profit)
     I) Profit = S.P. - C.P.
     II) S.P. = C.P. + Profit
     III) C.P. = S.P. - Profit

     e.g.) A company abc purchased                         some products in almost                             RS.50000 (C.P.)  and sold them to               an agency xyz for RS. 65000(S.P.)               Here S.P. > C.P.
     So company abc has a profit here,           Now we use Profit formula for it:
              Profit = S.P. - C.P.
                         = 65000 - 50000
              Profit = RS. 15000

2):- When C.P. > S.P. or S.P. < C.P.  ->(Loss)
     I) Loss = C.P. - S.P.
     II) C.P. = S.P. + Loss
     III) S.P. = C.P. - Loss

     e.g.) A professional doctor                                 purchased  a new Alto car for                   RS. 300000 (C.P.) after used it for               few  months he sold it to other                 person for RS. 250000 (S.P.).
             Here C.P. > S.P.
      Here Doctor has a Loss, So we use            Loss formula:
             Loss = C.P. - S.P.
                      = 300000 - 250000
             Loss = RS. 50000







     

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