Profit and Loss Questions for SSC CGL

Core Definitions

Cost Price (CP) is what you pay to buy or produce an item. Selling Price (SP) is what you receive when you sell it. If SP is more than CP, you earn Profit. If SP is less than CP, you incur Loss. These three values are the building blocks of every Profit and Loss question.

• Profit = SP - CP (when SP > CP)
• Loss = CP - SP (when CP > SP)
• Profit % = (Profit / CP) x 100
• Loss % = (Loss / CP) x 100
• Note: Profit and Loss percent are ALWAYS calculated on CP, not SP, unless the question explicitly says otherwise

Marked Price and Discount

Marked Price (MP) is the price printed on the tag before any discount. Discount is always calculated on the Marked Price, not on CP. The actual price the customer pays after discount is the SP. SSC loves questions that mix both a discount and a profit condition to find one unknown.

• Discount = MP - SP
• Discount % = (Discount / MP) x 100
• SP = MP x (100 - Discount%) / 100
• To earn X% profit after giving Y% discount: MP = CP x (100 + X) / (100 - Y)
• Remember: Discount is on MP, Profit/Loss is on CP

Successive Discounts

When two or more discounts are applied one after another, they are called successive discounts. You cannot simply add them. Always apply the second discount on the reduced price after the first discount. SSC often gives two discounts like 20% and 10% and asks for the equivalent single discount.

• Equivalent single discount for two discounts a% and b% = (a + b - ab/100)%
• For 20% and 10%: equivalent = 20 + 10 - 2 = 28%, NOT 30%
• Always process discounts left to right, applying each on the remaining price
• Final SP = MP x (1 - d1/100) x (1 - d2/100)

Dishonest Dealer and False Weight

A classic SSC trap question. A dishonest dealer claims to sell at cost price but uses a false weight (gives less than what he claims). This means he is effectively selling less quantity for the price of more. The profit is entirely from cheating on weight.

• Profit % = (True weight - False weight) / False weight x 100
• If a dealer uses 900g weight but claims it is 1000g, profit% = (1000-900)/900 x 100 = 11.11%
• If dealer also applies a profit% on top of cheating, combine both effects
• Think of it as: he gives you 900g but charges you for 1000g

Two Items Sold at Same SP, One Profit One Loss

This is a very common SSC trick question. When two items are each sold at the same selling price, one at X% profit and the other at X% loss, there is ALWAYS a net loss. The combined result never breaks even. This formula gives the net loss percent directly.

• Net result is always a LOSS when same profit% and loss% are equal
• Net Loss % = (common %)^2 / 100
• For 10% each: loss = 100/100 = 1%
• Do not waste time computing individual CPs unless you need exact rupee amount

• Calculating profit% on SP instead of CP. Profit% is ALWAYS on CP unless the question says 'on selling price'.
• Adding successive discounts directly. 20% + 10% is NOT 30%. It is 28%. Apply them one at a time.
• Confusing Discount on MP with Loss on CP. A product can be given a discount and still be sold at a profit.
• In false weight problems, dividing by true weight instead of false weight in the profit% formula.
• Assuming two items sold at same SP with equal profit% and loss% break even. They always result in a net LOSS.

• PDC rule: Profit and Loss on CP, Discount on MP. Say it before every question: P on C, D on M.
• For successive discounts shortcut: formula is like (a + b) but you SUBTRACT the product ab/100. Think of it as: adding but over-counted the overlap, so remove it.
• False weight memory: the denominator is the CHEAT (what he actually gives). Profit = extra he takes / what he actually gives.
• Same SP same % trick: picture a seesaw. Equal profit on one side and equal loss on other side do NOT balance. The loss side is heavier. Loss% = (x squared)/100.

• SSC CGL Tier 1 typically has 2-3 questions on this topic. At least one will involve Marked Price with discount and one will be a straightforward CP/SP calculation.
• Tier 2 can have multi-step questions combining discount, profit, and false weight in one problem. Solve step by step and do not skip units.
• For Tier 1 speed, memorize SP = CP x (100+P%)/100 as a single multiplication. Avoid long division by using fraction equivalents: 20% profit means multiply by 6/5.
• If the question mentions a shopkeeper selling at Cost Price but still making profit, immediately apply the false weight formula. This phrasing is the examiner's signal.
• Approximate using fraction equivalents to save time: 25% = 1/4, 33.33% = 1/3, 12.5% = 1/8. These come up repeatedly in SSC papers.