Bill, Profit and Loss
What are the cost price and selling price?
- The amount at which a product is purchased or bought.
- The amount at which a product is sold.
- It may be more than (>), equal to (=), or less than (<) the cost price of the product.
Richard buy a pen at ₹ 50. He sold this pen to his friend Manav at ₹ 40.
So here, Cost price of the pen for Richard = ₹ 50.
Selling price of the pen for Richard = ₹ 40.
What is the Bill?
- A slip of paper in which a shopkeeper notes down the requirements of a customer or buyer and calculates the total cost of items purchased is called a Bill.
- A shopkeeper can keep track of the day sales.
- The customer can come across and check the prices of items purchased and their total cost.
- In case of any problem, the customer can change the item easily by showing the bills.
How to read a bill?
- Name and address of the shop, phone number and date of purchase of items are mentioned on the bill.
- Following columns mentioned:
- Item number
- Name of the item
- Quantity of the item
- Rate of each item
- Total amount of the item.
- 2 kg Rice
Rate of 1 kg Rice = ₹ 45.
Cost of 2 kg Rice = 2 × 45 = ₹ 90
- 1 kg oil
Rate of 1 kg oil = ₹ 150
Cost of 1 kg oil = ₹ 150
- 1 kg Lentils = ₹ 90
Rate of 1 kg lentils = ₹ 90
Cost of 1 kg Lentils = ₹ 90
So, the total cost of all items purchased by Ronita:
= ₹ 90 + ₹ 150 + ₹ 90 = ₹ 330
Profit and Loss
- Profit means gaining money after selling a product.
- Loss is the opposite of profit. Loss means losing money after selling a product.
- There are some terms related to profit and loss. These are Cost price (or production cost) and Selling Price.
Rules of Profit and Loss:
- If the selling price is greater than the cost price, then it’s a profit.
- If the Selling price is less than then the cost price, then it’s a loss.
The shopkeeper bought a notebook for ₹ 20 and sell it for ₹ 25. How much profit has he gained?
Cost Price = ₹ 25
Selling Price = ₹ 20
Since, 25 > 20
So, Profit = ₹ 25 – ₹ 20 = ₹ 5
Hence, the shopkeeper gained a profit of ₹ 5.
Raju bought a cycle for ₹ 850 and sell it for ₹ 750 after one year. Find his overall profit or loss.
Cost Price = ₹ 850
Selling Price = ₹ 750
Since, 750 < 850
So, loss = ₹ 850 – ₹ 750 = ₹ 100
Hence, the Raju has loss of ₹ 100.