Profit & Loss Questions for SSC GD

Core Definitions and Formulas

Profit and Loss is about comparing what you pay (Cost Price) versus what you sell for (Selling Price). The difference tells you profit or loss. In SSC GD, you'll see straightforward scenarios: a shopkeeper buys goods at one price and sells at another. Your job is to calculate the gain or loss as a percentage. This is foundational for retail, trade, and everyday commerce questions.

• Cost Price (CP) = amount paid to buy the item
• Selling Price (SP) = amount received when selling
• Profit = SP - CP (when SP > CP)
• Loss = CP - SP (when CP > SP)
• Profit % and Loss % are always calculated on Cost Price, never on Selling Price
• Marked Price (MP) is the tag price; discount is given on MP, not CP

Marked Price, Discount, and Profit Combined

SSC GD loves mixing Marked Price, Discount, and Profit in one question. A shopkeeper marks goods at a price (MP), gives a discount, and the final Selling Price (SP) determines profit or loss. The key is: Discount % is always on Marked Price, but Profit % is always on Cost Price. Don't mix them up.

• Marked Price is the displayed/tag price
• Discount is reduction from MP; Discount % = (Discount / MP) × 100
• After discount, you get Selling Price: SP = MP - Discount
• Profit or Loss is calculated between SP and CP, not MP and CP
• Common trap: candidates calculate profit % on MP instead of CP

Successive Profit/Loss and Transactions

Sometimes a shopkeeper buys, sells, buys again, and sells again. Or an item passes through multiple hands. You must track CP and SP at each stage. The final profit or loss is calculated from the original CP to the final SP. Alternatively, you can use the multiplier method: if profit is 20%, multiply by 1.2; if loss is 10%, multiply by 0.9.

• Track each transaction separately: CP and SP for each stage
• Final profit/loss = Final SP - Original CP
• Multiplier shortcut: Profit 20% means multiply by 1.2; Loss 10% means multiply by 0.9
• For successive transactions, multiply the multipliers
• Example: 20% profit then 10% loss = 1.2 × 0.9 = 1.08 = 8% overall profit

Cost Price and Selling Price Relationship

Sometimes SSC GD gives you profit % or loss % and asks for CP or SP. You must rearrange the formulas. If profit is 25%, then SP = 1.25 × CP. If loss is 15%, then SP = 0.85 × CP. This inverse relationship is crucial for reverse-calculation questions.

• If profit % is given, SP = CP × (100 + Profit%) / 100
• If loss % is given, SP = CP × (100 - Loss%) / 100
• To find CP from SP and profit %: CP = SP × 100 / (100 + Profit%)
• To find CP from SP and loss %: CP = SP × 100 / (100 - Loss%)
• Always check: is the percentage on CP or on SP? SSC GD questions always use CP as base

• Calculating profit % on Selling Price instead of Cost Price. Remember: profit % = (profit / CP) × 100, NOT (profit / SP) × 100. This is the #1 error.
• Confusing Discount % (on Marked Price) with Profit % (on Cost Price). Discount is reduction from MP; profit is gain on CP. Two different bases.
• Forgetting to convert discount % to actual discount amount before finding SP. Always use: SP = MP × (100 - Discount%) / 100.
• In successive transactions, using the final SP as if it were the original CP for the next transaction. Track each stage separately.
• Assuming profit % and loss % are always calculated on the same base. In SSC GD, profit/loss % is ALWAYS on Cost Price, never on Selling Price or Marked Price.

• CP-SP-Profit: Cost Price is the base. Profit % is always (Profit / CP) × 100. Think: CP is the foundation; profit is the gain on that foundation.
• MP-Discount-SP: Marked Price is the tag. Discount % is on MP. SP = MP - Discount. Think: MP is the starting point; discount reduces it to SP.
• Profit 20% = multiply by 1.2; Loss 10% = multiply by 0.9. For successive deals, chain the multipliers. Example: 1.2 × 0.9 = 1.08 = 8% net profit.
• Reverse formula shortcut: If profit 25%, then SP = 1.25 × CP, so CP = SP / 1.25. If loss 20%, then SP = 0.80 × CP, so CP = SP / 0.80.

• SSC GD typically asks 2-3 profit/loss questions per paper. Expect 1 direct formula question, 1 discount + profit combo, and 1 reverse calculation or successive transaction.
• Time management: These are quick questions if you memorize formulas. Allocate 2-3 minutes per question. Don't overthink.
• Recent pattern: SSC GD favors marked price + discount + profit scenarios. Practice at least 5 such two-step problems before the exam.
• Common distractors: Options often include answers calculated on wrong base (e.g., profit % on SP). Double-check your base before finalizing.
• Avoid calculator errors: Use the multiplier method (1.2, 0.9, etc.) for successive transactions; it's faster and less error-prone than repeated division.
• Read carefully: Distinguish between 'profit of Rs 100' (absolute) and 'profit of 20%' (percentage). Both appear in SSC GD papers.