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Profit and Loss — Questions and Answers

Profit and Loss is the most business-relevant aptitude topic and the one interviewers most often turn into a discussion. Percentages here are always taken on the cost price unless the question explicitly says otherwise. The three ideas that unlock nearly every question are: marked price versus selling price, successive discounts multiply, and false weights create profit even when goods are "sold at cost price".

28 solved questionsArithmetic AptitudeFree · no signup

Profit and Loss— Concepts, Formulas & Shortcuts

  • Profit % = (SP − CP)/CP × 100; Loss % = (CP − SP)/CP × 100 — always on CP.
  • SP = CP × (100 + profit%)/100; CP = SP × 100/(100 + profit%).
  • Successive discounts of a% and b% ⇒ single equivalent discount = a + b − ab/100.
  • Selling two items at the same price, one at +x% and one at −x%, always gives a net LOSS of x²/100 %.
  • False weight: gain % = (true weight − false weight)/false weight × 100.
  • If CP of m articles = SP of n articles, profit % = (m − n)/n × 100.

Profit and Loss Practice Questions with Answers

Attempt each question first, then open the explanation. All 28 questions below are free to read and require no signup.

  1. Q1.A shopkeeper buys an article for ₹450 and sells it for ₹540. His profit per cent is:

    Easy
    • A15%
    • B18%
    • C20%
    • D25%
    +Show Answer & Explanation

    Answer: C. 20%

    Explanation: Profit = ₹90 on CP ₹450 → 90/450 × 100 = 20%.

    Profit and Loss question 1 of 28

  2. Q2.An article sold for ₹1,140 gives a profit of 20%. Its cost price is:

    Easy
    • A₹912
    • B₹950
    • C₹980
    • D₹1,000
    +Show Answer & Explanation

    Answer: B. ₹950

    Explanation: CP = 1140 × 100/120 = ₹950.

    Profit and Loss question 2 of 28

  3. Q3.By selling an article for ₹720 a man loses 10%. To gain 10% he must sell it for:

    Moderate
    • A₹792
    • B₹800
    • C₹864
    • D₹880
    +Show Answer & Explanation

    Answer: D. ₹880

    Explanation: CP = 720 × 100/90 = ₹800. For 10% gain: 800 × 1.1 = ₹880.

    Profit and Loss question 3 of 28

  4. Q4.If the cost price of 15 articles equals the selling price of 12 articles, the profit per cent is:

    Moderate
    • A20%
    • B22%
    • C25%
    • D30%
    +Show Answer & Explanation

    Answer: C. 25%

    Explanation: Profit % = (15 − 12)/12 × 100 = 25%.

    Profit and Loss question 4 of 28

  5. Q5.A trader marks his goods 40% above cost and allows a 20% discount. His net profit per cent is:

    Moderate
    • A10%
    • B12%
    • C15%
    • D20%
    +Show Answer & Explanation

    Answer: B. 12%

    Explanation: Take CP = 100 → MP = 140 → SP = 140 × 0.8 = 112 → profit = 12%.

    Profit and Loss question 5 of 28

  6. Q6.A man sells two articles at ₹990 each, gaining 10% on one and losing 10% on the other. Overall he:

    Difficult
    • AGains 1%
    • BLoses 1%
    • CBreaks even
    • DLoses 2%
    +Show Answer & Explanation

    Answer: B. Loses 1%

    Explanation: CPs are 900 and 1,100 = ₹2,000 total; total SP = ₹1,980 → loss of ₹20 = 1%. (Shortcut: x²/100 = 1% loss.)

    Profit and Loss question 6 of 28

  7. Q7.Successive discounts of 20% and 10% are equivalent to a single discount of:

    Moderate
    • A26%
    • B28%
    • C30%
    • D32%
    +Show Answer & Explanation

    Answer: B. 28%

    Explanation: 20 + 10 − (20 × 10)/100 = 30 − 2 = 28%.

    Profit and Loss question 7 of 28

  8. Q8.A dishonest dealer sells goods at cost price but uses a weight of 800 g for 1 kg. His gain per cent is:

    Moderate
    • A20%
    • B22.5%
    • C25%
    • D30%
    +Show Answer & Explanation

    Answer: C. 25%

    Explanation: Gain % = (1000 − 800)/800 × 100 = 25%.

    Profit and Loss question 8 of 28

  9. Q9.A profit of 25% on the selling price is equivalent to what profit per cent on the cost price?

    Difficult
    • A25%
    • B30%
    • C33 1/3%
    • D40%
    +Show Answer & Explanation

    Answer: C. 33 1/3%

    Explanation: Let SP = 100 → profit = 25 → CP = 75. Profit on CP = 25/75 × 100 = 33⅓%.

    Profit and Loss question 9 of 28

  10. Q10.The cost price of 12 pens equals the selling price of 8 pens. The profit per cent is:

    Moderate
    • A33 1/3%
    • B40%
    • C50%
    • D66 2/3%
    +Show Answer & Explanation

    Answer: C. 50%

    Explanation: Profit % = (12 − 8)/8 × 100 = 50%.

    Profit and Loss question 10 of 28

  11. Q11.An article bought for ₹600 is sold for ₹750. The profit per cent is:

    Easy
    • A20%
    • B22%
    • C25%
    • D30%
    +Show Answer & Explanation

    Answer: C. 25%

    Explanation: Profit = ₹150 on ₹600 → 150/600 × 100 = 25%.

    Profit and Loss question 11 of 28

  12. Q12.A shopkeeper sells an item for ₹864 at a loss of 4%. Its cost price is:

    Moderate
    • A₹880
    • B₹900
    • C₹920
    • D₹950
    +Show Answer & Explanation

    Answer: B. ₹900

    Explanation: CP = 864 × 100/96 = ₹900.

    Profit and Loss question 12 of 28

  13. Q13.A man buys 12 apples for ₹60 and sells 10 apples for ₹60. His profit per cent is:

    Moderate
    • A10%
    • B15%
    • C20%
    • D25%
    +Show Answer & Explanation

    Answer: C. 20%

    Explanation: CP per apple = ₹5, SP per apple = ₹6 → profit = ₹1 on ₹5 = 20%.

    Profit and Loss question 13 of 28

  14. Q14.Successive discounts of 10% and 10% are equivalent to a single discount of:

    Moderate
    • A18%
    • B19%
    • C20%
    • D21%
    +Show Answer & Explanation

    Answer: B. 19%

    Explanation: 10 + 10 − (10 × 10)/100 = 20 − 1 = 19%.

    Profit and Loss question 14 of 28

  15. Q15.The marked price of an article is ₹800 and it is sold at ₹680. The discount per cent is:

    Easy
    • A12%
    • B15%
    • C18%
    • D20%
    +Show Answer & Explanation

    Answer: B. 15%

    Explanation: Discount = ₹120 on ₹800 → 120/800 × 100 = 15%.

    Profit and Loss question 15 of 28

  16. Q16.A trader sells goods at a 10% discount on the marked price and still gains 20%. The marked price is above cost price by:

    Difficult
    • A30%
    • B33 1/3%
    • C35%
    • D40%
    +Show Answer & Explanation

    Answer: B. 33 1/3%

    Explanation: Take CP = 100 → SP = 120. If MP = m, then 0.9m = 120 → m = 133.33, i.e. 33⅓% above cost.

    Profit and Loss question 16 of 28

  17. Q17.If a man sells an article at 2/3 of its actual selling price, he incurs a loss of 20%. His actual profit per cent is:

    Difficult
    • A10%
    • B15%
    • C20%
    • D25%
    +Show Answer & Explanation

    Answer: C. 20%

    Explanation: Let the actual SP be x. Then (2/3)x = 0.8 × CP → x = 1.2 × CP, which is a 20% profit.

    Profit and Loss question 17 of 28

  18. Q18.A shopkeeper mixes 30 kg of rice at ₹40/kg with 20 kg at ₹50/kg and sells the mixture at ₹50/kg. His profit per cent is:

    Difficult
    • A12.5%
    • B13.6%
    • C14.5%
    • D15%
    +Show Answer & Explanation

    Answer: B. 13.6%

    Explanation: Total CP = 1200 + 1000 = ₹2,200 for 50 kg. SP = 50 × 50 = ₹2,500. Profit = 300/2200 × 100 ≈ 13.6%.

    Profit and Loss question 18 of 28

  19. Q19.A man sells an article at a profit of 20%. If he had bought it for 20% less and sold it for ₹75 less, he would have gained 25%. The cost price is:

    Difficult
    • A₹300
    • B₹325
    • C₹375
    • D₹400
    +Show Answer & Explanation

    Answer: C. ₹375

    Explanation: Let CP = x, so SP = 1.2x. New CP = 0.8x and new SP = 1.2x − 75, giving a 25% gain: 1.2x − 75 = 1.25(0.8x) = x → 0.2x = 75 → x = ₹375.

    Profit and Loss question 19 of 28

  20. Q20.By selling 33 metres of cloth a shopkeeper loses the selling price of 11 metres. His loss per cent is:

    Difficult
    • A20%
    • B25%
    • C30%
    • D33 1/3%
    +Show Answer & Explanation

    Answer: B. 25%

    Explanation: Let SP per metre = 1. SP of 33 m = 33, loss = 11, so CP = 44. Loss % = 11/44 × 100 = 25%.

    Profit and Loss question 20 of 28

  21. Q21.An article costing ₹200 is sold for ₹250. The profit per cent is:

    Easy
    • A20%
    • B22%
    • C25%
    • D30%
    +Show Answer & Explanation

    Answer: C. 25%

    Explanation: Profit = ₹50 on ₹200 → 50/200 × 100 = 25%.

    Profit and Loss question 21 of 28

  22. Q22.An article costing ₹500 is sold for ₹450. The loss per cent is:

    Easy
    • A8%
    • B10%
    • C12%
    • D15%
    +Show Answer & Explanation

    Answer: B. 10%

    Explanation: Loss = ₹50 on ₹500 → 10%.

    Profit and Loss question 22 of 28

  23. Q23.A shopkeeper sells goods worth ₹1,200 at a 25% profit. His cost price was:

    Moderate
    • A₹900
    • B₹960
    • C₹1,000
    • D₹1,080
    +Show Answer & Explanation

    Answer: B. ₹960

    Explanation: CP = 1200 × 100/125 = ₹960.

    Profit and Loss question 23 of 28

  24. Q24.By selling an article for ₹450 a man gains 25%. To gain 50% he must sell it for:

    Moderate
    • A₹500
    • B₹520
    • C₹540
    • D₹560
    +Show Answer & Explanation

    Answer: C. ₹540

    Explanation: CP = 450 × 100/125 = ₹360. For 50% gain: 360 × 1.5 = ₹540.

    Profit and Loss question 24 of 28

  25. Q25.Successive discounts of 25% and 20% equal a single discount of:

    Moderate
    • A40%
    • B42%
    • C45%
    • D50%
    +Show Answer & Explanation

    Answer: A. 40%

    Explanation: 25 + 20 − (25 × 20)/100 = 45 − 5 = 40%.

    Profit and Loss question 25 of 28

  26. Q26.An article marked ₹1,000 is sold after a 30% discount. The selling price is:

    Easy
    • A₹650
    • B₹700
    • C₹730
    • D₹750
    +Show Answer & Explanation

    Answer: B. ₹700

    Explanation: Discount = ₹300 → SP = ₹700.

    Profit and Loss question 26 of 28

  27. Q27.A trader marks goods 25% above cost and gives a 20% discount. His profit or loss is:

    Difficult
    • ANo profit no loss
    • B5% profit
    • C5% loss
    • D10% profit
    +Show Answer & Explanation

    Answer: A. No profit no loss

    Explanation: Take CP = 100 → MP = 125 → SP = 125 × 0.8 = 100. The trader breaks even.

    Profit and Loss question 27 of 28

  28. Q28.If the selling price of 10 articles equals the cost price of 12 articles, the profit per cent is:

    Moderate
    • A16 2/3%
    • B20%
    • C25%
    • D30%
    +Show Answer & Explanation

    Answer: B. 20%

    Explanation: Profit % = (12 − 10)/10 × 100 = 20%.

    Profit and Loss question 28 of 28

Profit and Loss — Frequently Asked Questions

Is profit percentage calculated on cost price or selling price?+

On cost price, by convention, unless the question explicitly states "profit on selling price". A 25% profit on SP is equivalent to a 33⅓% profit on CP.

Why do two items sold at the same price with equal profit and loss percentages give a loss?+

Because the loss-making item has a higher cost price, so the rupee loss exceeds the rupee gain. The net loss is always x²/100 percent.

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