In our daily life, the knowledge of profit and loss is essential. Here students learn how to calculate the selling price of a product and how to calculate the cost price of a product.

In this learning concept, the students will also learn to

- Evaluate the profit and profit formula.
- Identify the loss meaning and profit loss formula.
- Estimate the profit and loss questions.

Each concept is explained to class 5 maths students using illustrations, examples, and mind maps. Students can assess their learning by solving the two printable worksheets given at the page’s end.

Download the profit and loss worksheet for class 5 and check the solutions to the profit and loss questions for class 5 provided in PDF format.

**About Profit and Loss :**

- The terms related to selling or buying items are:
- Cost Price
- Selling Price
- Marked Price
- Discount

**Cost Price:**The item at which the article is bought or the amount which is required to make an article is called the cost price.The cost price is abbreviated as “CP”.

**Selling Price:**The amount at which the product is sold is called the selling price of the article.The selling price is abbreviated as “SP”.

**Marked Price:**The amount which is set by the seller as the label of the article is called the marked price.

The marked price of the article is generally more than the cost price.

It is abbreviated as “MP”

**Discount:**The amount which is offered by the seller to reduce the selling price is called the discount.

- While selling an article three conditions may arise:
- Cost Price is less than selling price, i.e., C.P < S.P
- Cost price is more than the selling price, i.e., C.P > S.P
- Cost price is equal to the selling price, i.e., C.P = S.P.

- Based on this condition the seller either makes a profit or a loss.

** **

** What Is Profit?**

- Profit means a gain in amount.
- When the cost price is less than the selling price then we earn a profit.
- The formula to calculate the profit is “Profit = Cost price – Selling Price”.

**Example:** The cost price of an article is Rs 74 and the selling price is Rs 86 each. Find the profit made in selling 23 such articles.

**Solution:**

**Step 1:**** **The cost price of an article is Rs 74.

Multiply 74 by 23 to get the cost price of 23 articles.

74 × 23 = 1,702

**Step 2:** The selling price of an article is Rs 86.

Multiply 86 by 23 to get the selling price of 23 articles.

86 × 23 = 1,978

**Step 3:** Subtract 1,702 from 1,978 to get the profit.

1,978 – 1,702 = 276

Therefore, the profit made in selling 23 articles is Rs 276.

** **

** Loss **

- Loss means losing an amount.
- When the cost price is more than the selling price then we suffer loss.
- The formula to calculate loss is “Loss = Cost Price – Selling Price”.

**Example:** Bhavan bought 20 boxes of gifts for Rs 1,642. He sold each box for Rs 58. Find the loss or profit made by him.

**Solution:**

**Step 1:** The selling price of 1 box = Rs 58.

Number of boxes = 20

Total selling price = 58 × 20

= 1,160

**Step 2:** The cost price of 20 boxes = Rs 1,642.

The selling price of 20 boxes = Rs 1,160

Loss = 1,642 – 1,160

= 482

** **

** How to Calculate of Selling Price of a Product?**

- If a seller provides a discount on the marked price, then the selling price is calculated as “Selling Price = Marked Price – Discount”.
**Example:**The marked price of the washing machine was Rs 29,780. The shopkeeper offers a discount of Rs 5645 as a “Diwali Sale”. Calculate the selling price of the washing machine.**Solution:**Marked Price = Rs 29,780.

Discount = 5645

Selling Price = 29,780 – 5645

= 24,135

- If the cost price and the profit are given then the selling price is calculated as “Selling Price = Cost Price + Profit”.
- If the cost price and the loss is given then the selling price is calculated as “Selling Price = Cost Price – Loss”.

**Example:** The cost price of the articles is Rs 24,906. The man sold the articles in a loss of Rs 904. Find the selling price

**Solution:**

Coat Price of an article = Rs 24,906.

Loss = 904

Selling price = Rs 24,906 – 904

= Rs 24,002

** How to Calculate the Cost Price of a Product?**

- If an additional amount is spent on repairing or modifying an article then the total cost price of an article is equal to the sum of the price at which the article is bought and the additional price which is spent on the article”.
**Example:**A man bought a motorbike for Rs 25,000. He spent Rs 3500 on paperwork, and Rs 7000 for changing the motor parts. At what price should he sell the motorbike to make a profit of Rs 3000.**Solution:****Step 1:**Amount spend on paper work = 3500

Amount spend on motor parts = Rs 7000

Total additional cost = Rs 3500 + Rs 7000 = Rs 10,500**Step 2:**Cost price of the motorbike = Rs 25,000.

Additional cost = Rs 10,500

Total cost price = Rs 25,000 + 10,500 = Rs 35,500**Step 3:**Total cost price = Rs 35,500

Profit = Rs 3000

Selling Price = Rs 35,500 + Rs 3000

= Rs 38,500 - If the selling price and the profit are given then the cost price is calculated as “Cost Price = Selling Price – Profit”.
- If the selling price and the loss are given then the cost price is calculated as “Cost Price = Selling Price + Loss”.

**Example:** A man makes a profit of Rs 2768 in selling 20 articles for Rs 54 each. Calculate the cost price of the article.

**Solution:**

**Step 1:** Selling Price of an article = Rs 54.

Number of articles = 20

Total selling price = 54 × 20

= 1080

**Step 2:** Selling Price of the article = Rs 1080

Profit = Rs 2768

Cost price of an article = 1080 + 2768

= Rs 3,848

** **

** Profit and Loss Question for Class 5**

**Example:**

Rahul sold a bicycle to Banu at Rs 5780 thereby making a profit of Rs 700. Banu sold it Harika at the loss of Rs 850. Find the cost price of the bicycle for Rahul and Harika.

**Solution:**

**Step 1: **The selling price for Rahul = Rs 5780

Profit made by Rahul = Rs 700

Cost price of Bicycle for Rahul = Rs 5780 – Rs 700

= Rs 5080

**Step 2: **The selling price for Rahul is equal to the Cost price of the Bicycle for Banu.

Therefore, the Cost price of the Bicycle for Banu = Rs 5780.

Loss = Rs 850

Selling Price of Bicycle for Banu = Rs 5780 – Rs 850

= Rs 4,930

The selling price for Banu is equal to the cost price for Harika.

Therefore, the cost price of a bicycle for Harika = Rs 4,930.

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