**Cost Price:**

- The amount at which a product is purchased or bought.

**Selling Price:**

- The amount at which a product is sold.
- It may be more than (>), equal to (=), or less than (<) the cost price of the product.

**Example:**

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.
- Shopkeeper enters the name of the item, rate, and quantity in the bill.
- He calculates the amount for each item by multiplying the rate by quantity.
- Finally, at the end, total cost of all items purchased is mentioned in the bill.

- From the above bill, we can find that Ronita purchased:
- 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.

**Example:**

The shopkeeper bought a notebook for ₹ 20 and sell it for ₹ 25. How much profit has he gained?

**Answer:**

Cost Price = ₹ 25

Selling Price = ₹ 20

Since, 25 > 20

So, Profit = ₹ 25 – ₹ 20 = ₹ 5

Hence, the shopkeeper gained a profit of ₹ 5.

- If the Selling price is less than then the cost price, then it’s a loss.

**Example:**

Raju bought a cycle for ₹ 850 and sell it for ₹ 750 after one year. Find his overall profit or loss.

**Answer:**

Cost Price = ₹ 850

Selling Price = ₹ 750

Since, 750 < 850

So, loss = ₹ 850 – ₹ 750 = ₹ 100

Hence, the Raju has loss of ₹ 100.

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