Profit and Loss Questions for Placements — Formulas and Shortcuts

Profit and Loss Questions for Placements — Formulas and Shortcuts

Profit and loss is a highly practical topic in aptitude for placements. It tests your ability to interpret commercial transactions and apply formulas quickly. From basic profit percentage to combined discount problems, this topic appears in almost every company aptitude test across India including TCS, Infosys, Wipro, and Accenture.

Core Definitions

Cost Price (CP) is what you pay to acquire an item. Selling Price (SP) is what you receive when you sell it. Marked Price (MP) is the listed price before any discount is applied. Profit occurs when SP exceeds CP. Loss occurs when CP exceeds SP. Both profit percent and loss percent are always calculated on Cost Price, never on Selling Price — getting the base wrong is the most common error.

Key Formulas

Profit percent equals profit divided by CP, multiplied by 100. SP equals CP multiplied by 1 plus profit percent divided by 100. CP equals SP multiplied by 100, divided by 100 plus profit percent. For successive discounts of a percent and b percent, the net discount equals a plus b minus ab divided by 100. This is the same formula as successive percentage changes.

Solved Example

A shopkeeper buys for Rs. 800 and marks 50 percent above CP. He gives a 20 percent discount. Marked Price equals 800 times 1.5, giving Rs. 1200. SP after 20 percent discount equals 1200 times 0.8, giving Rs. 960. Profit equals 960 minus 800, which is Rs. 160. Profit percent equals 160 divided by 800 times 100, which is 20 percent.

Interview Tips

Profit and loss problems in placement exams often combine two or three concepts. Always establish CP as your reference point before any calculation. The trap question about selling two items at the same SP — one at x percent profit and one at x percent loss — always results in an overall loss of x squared divided by 100 percent. Recognizing this pattern saves significant time in timed placement tests.