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 C.P. > S.P.
Here Doctor has a Loss, So we use Loss formula:
Loss = C.P. - S.P.
= 300000 - 250000
Loss = RS. 50000
