Profit AND Loss Questions FOR Placement

Meta Description: Master Profit and Loss questions for placements with 20 solved examples, shortcut formulas, and expert tips. Essential for TCS, Infosys, Wipro, and all major company exams.

Introduction

Profit and Loss is a fundamental topic in quantitative aptitude that appears in virtually every campus placement exam. Companies like TCS, Infosys, Wipro, Accenture, Cognizant, and Amazon frequently test candidates on their ability to calculate profit percentages, loss percentages, discounts, and marked prices.

This topic is essential because:

Universal Relevance: Questions appear in 90%+ of placement tests
Real-World Application: Directly applicable to business and finance roles
Quick Scoring: Most questions can be solved in 30-60 seconds with shortcuts
Interview Topics: Often extended into case studies during interviews

At PapersAdda, we've compiled the most frequently asked Profit and Loss questions based on analysis of recent placement papers from top IT and consulting companies.

Basic Formulas to Remember

Profit = Selling Price (SP) - Cost Price (CP)
Loss = Cost Price (CP) - Selling Price (SP)
Profit % = (Profit/CP) × 100
Loss % = (Loss/CP) × 100
SP = CP × (100 + Profit%)/100
SP = CP × (100 - Loss%)/100
Discount = Marked Price (MP) - Selling Price (SP)
Discount % = (Discount/MP) × 100

20 Practice Questions with Detailed Solutions

Question 1

A shopkeeper buys an article for ₹800 and sells it for ₹1000. Find the profit percentage.

Solution: CP = ₹800, SP = ₹1000 Profit = SP - CP = 1000 - 800 = ₹200 Profit % = (200/800) × 100 = 25%

Question 2

By selling an article for ₹720, a man loses 10%. At what price should he sell it to gain 10%?

Solution: SP at 10% loss = ₹720 = 90% of CP CP = 720 × 100/90 = ₹800

For 10% profit: SP = 800 × 110/100 = ₹880

Question 3

A trader marks his goods 25% above the cost price and allows a discount of 10%. Find his profit percentage.

Solution: Let CP = ₹100 MP = 100 + 25% = ₹125 Discount = 10% of 125 = ₹12.50 SP = 125 - 12.50 = ₹112.50

Profit = 112.50 - 100 = ₹12.50 Profit % = 12.50%

Question 4

If the cost price of 15 articles is equal to the selling price of 12 articles, find the profit percentage.

Solution: Let CP of 15 articles = SP of 12 articles = ₹1 (for simplicity) CP of 1 article = 1/15 SP of 1 article = 1/12

Profit per article = 1/12 - 1/15 = (5-4)/60 = 1/60 Profit % = [(1/60) ÷ (1/15)] × 100 = (1/60) × 15 × 100 = 25%

Question 5

A man sells two articles each for ₹10,000. On one he gains 20% and on the other he loses 20%. Find his overall gain or loss percentage.

Solution: When SP is same and profit% = loss%, there is always a loss. Loss % = (Common %)²/100 = (20)²/100 = 400/100 = 4%

Verification: CP of first article = 10000 × 100/120 = ₹8333.33 CP of second article = 10000 × 100/80 = ₹12500 Total CP = ₹20833.33, Total SP = ₹20000 Loss = ₹833.33, Loss % = (833.33/20833.33) × 100 = 4%

Question 6

A shopkeeper sells an article at a loss of 10%. If he had sold it for ₹90 more, he would have gained 5%. Find the cost price.

Solution: Let CP = ₹x SP at 10% loss = 0.9x SP at 5% gain = 1.05x

Difference: 1.05x - 0.9x = 90 0.15x = 90 x = ₹600

Question 7

The marked price of an article is ₹800. After allowing a discount of 20%, the shopkeeper still makes a profit of 25%. Find the cost price.

Solution: MP = ₹800 Discount = 20% of 800 = ₹160 SP = 800 - 160 = ₹640

SP = 125% of CP (25% profit) 640 = 1.25 × CP CP = 640/1.25 = ₹512

Question 8

A dealer professes to sell his goods at cost price but uses a weight of 900 grams for a kilogram. Find his gain percentage.

Solution: He sells 900g as 1000g CP of 900g = ₹900 (assuming ₹1 per gram) SP of 900g (as 1000g) = ₹1000

Profit = 1000 - 900 = ₹100 Profit % = (100/900) × 100 = 100/9 = 11.11%

Question 9

By selling 33 meters of cloth, a shopkeeper gains the selling price of 11 meters. Find his gain percentage.

Solution: Let SP per meter = ₹1 SP of 33 meters = ₹33 Profit = SP of 11 meters = ₹11 CP of 33 meters = 33 - 11 = ₹22

Profit % = (11/22) × 100 = 50%

Question 10

A trader mixes 26 kg of rice at ₹20 per kg with 30 kg of rice at ₹36 per kg and sells the mixture at ₹35 per kg. Find his profit percentage.

Solution: CP of mixture = (26 × 20) + (30 × 36) = 520 + 1080 = ₹1600 Total quantity = 26 + 30 = 56 kg SP = 56 × 35 = ₹1960

Profit = 1960 - 1600 = ₹360 Profit % = (360/1600) × 100 = 22.5%

Question 11

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

Solution: Let MP = ₹100 After first discount: 100 × 0.8 = ₹80 After second discount: 80 × 0.9 = ₹72

Single equivalent discount = 100 - 72 = 28%

Formula: a + b - (ab/100) = 20 + 10 - (200/100) = 30 - 2 = 28%

Question 12

A man buys a cycle for ₹1400 and sells it at a loss of 15%. What is the selling price?

Solution: CP = ₹1400 Loss % = 15% SP = 1400 × (100 - 15)/100 = 1400 × 0.85 = ₹1190

Question 13

If an article is sold at 5% gain instead of 5% loss, the seller gets ₹10 more. Find the cost price.

Solution: Let CP = ₹x Difference between 5% gain and 5% loss = 10% of CP 10% of x = 10 x = ₹100

Question 14

A retailer buys 40 pens at the marked price of 36 pens from a wholesaler. If he sells these pens giving a discount of 1%, what is his profit percentage?

Solution: Let MP of 1 pen = ₹1 CP of 40 pens = MP of 36 pens = ₹36 CP per pen = 36/40 = ₹0.90

SP per pen (1% discount) = 1 × 0.99 = ₹0.99 Profit per pen = 0.99 - 0.90 = ₹0.09 Profit % = (0.09/0.90) × 100 = 10%

Question 15

A shopkeeper sold an article offering a discount of 5% and earned a profit of 23.5%. What would have been the percentage of profit earned if no discount was offered?

Solution: Let CP = ₹100 SP with 23.5% profit = ₹123.50 This SP is after 5% discount So, 95% of MP = 123.50 MP = 123.50/0.95 = ₹130

If no discount: SP = MP = ₹130 Profit % = (130 - 100)/100 × 100 = 30%

Question 16

A man bought toffees at 3 for a rupee. How many for a rupee must he sell to gain 50%?

Solution: CP of 3 toffees = ₹1 CP of 1 toffee = ₹1/3

For 50% profit: SP of 1 toffee = (1/3) × 1.5 = ₹1/2

For ₹1, he can sell 2 toffees

Question 17

An article when sold at a gain of 5% yields ₹15 more than when sold at a loss of 5%. What is the cost price?

Solution: Let CP = ₹x Difference = 5% gain - (-5% loss) = 10% of CP 10% of x = 15 x = ₹150

Question 18

A shopkeeper sells a badminton racket marked at ₹300 at 20% discount and gives a shuttle cock costing ₹15 free with each racket. Even then he makes a profit of 20%. Find the cost price of the racket.

Solution: MP = ₹300 SP after 20% discount = 300 × 0.8 = ₹240 Effective SP (after giving free cock worth ₹15) = 240 - 15 = ₹225

This gives 20% profit CP × 1.20 = 225 CP = 225/1.20 = ₹187.50

Question 19

A person purchases 90 clocks and sells 40 clocks at a gain of 10% and 50 clocks at a gain of 20%. If he sold all of them at a uniform profit of 15%, then he would have got ₹40 less. Find the cost price of each clock.

Solution: Let CP of each clock = ₹x Total CP = 90x

Actual total SP = 40x × 1.10 + 50x × 1.20 = 44x + 60x = 104x

Uniform 15% profit SP = 90x × 1.15 = 103.5x

Difference: 104x - 103.5x = 0.5x = 40 x = ₹80

Question 20

A trader marks his goods at such a price that after allowing a discount of 12.5% on the marked price, he still earns a profit of 25%. At what percentage above the cost price does he mark his goods?

Solution: Let CP = ₹100 SP for 25% profit = ₹125

This SP is after 12.5% discount 87.5% of MP = 125 MP = 125/0.875 = ₹142.86

Percentage above CP = (142.86 - 100)/100 × 100 = 42.86% = 300/7%

Tips & Tricks for Profit and Loss Problems

1. Quick Profit/Loss % Formula

If SP is given and profit/loss % is known:

CP = SP × 100/(100 + Profit%) for profit
CP = SP × 100/(100 - Loss%) for loss

2. False Weight Formula

If a shopkeeper sells x grams as y grams (where y > x): Gain % = [(y - x)/x] × 100

3. Successive Discounts

Two successive discounts of a% and b%: Equivalent single discount = a + b - (ab/100)

4. Same SP, Equal Profit and Loss

If two articles are sold at the same price, one at x% profit and other at x% loss: Overall Loss % = x²/100

5. CP from Profit/Loss Difference

If difference between profit at x% and loss at y% is ₹D: CP = D × 100/(x + y)

6. Article Exchange Method

If CP of x articles = SP of y articles: Profit % = [(x - y)/y] × 100 (when x > y)

7. Marked Price Shortcut

If profit % after discount d% is p%: MP = CP × (100 + p)/(100 - d) × 100

Common Mistakes to Avoid

❌ Mistake 1: Using SP as Base for Profit%

Always calculate profit/loss percentage on CP, not SP. Wrong: Profit % = (Profit/SP) × 100 Right: Profit % = (Profit/CP) × 100

❌ Mistake 2: Adding Percentages Directly

20% profit + 10% profit ≠ 30% profit on same CP Calculate actual values first.

❌ Mistake 3: Confusing Discount with Loss

Discount is on MP, Loss is on CP. They're different concepts.

❌ Mistake 4: Ignoring Hidden Costs

In real scenarios, include overhead costs, transportation, etc. in CP.

❌ Mistake 5: Wrong Formula Application

Don't mix up formulas for successive discounts with simple addition.

❌ Mistake 6: Unit Confusion

Ensure all values are in the same unit before calculation.

Conclusion

Profit and Loss questions are scoring opportunities in placement exams. With consistent practice and the right shortcuts, you can solve these problems accurately and quickly. Remember to:

Master the basic formulas thoroughly
Practice different variations of discount and marked price problems
Use the LCM or unitary method for faster calculations
Always verify your answer by working backwards

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