RD Sharma Class 7 Maths Solutions Chapter 12 - Profit and Loss

Profits are gains, particularly the difference between the amount earned and the amount spent.

A loss occurs when a product is sold at a lesser cost. Loss is the difference between the price at which the good was bought and the price at which it was sold. 

When a good is sold at a greater price then a profit occurs If the good is sold at a lesser price then there is a loss. 

Meaning of profit and loss with examples

The meaning of profit and loss can be further illustrated with the help of some examples. 

Example: If a student buys a mobile phone for Rs. 20000 and sells it for Rs. 25000 to his friend then the student makes a profit of Rs. 5000. Now, if the same student sells the mobile phone for Rs. 18000, then the student has a loss of Rs. 2000. 

If a shopkeeper purchases milk for Rs. 80 and he sells it for Rs.70, he has a loss of Rs.10.If he sells it for Rs.100, he will make a profit of Rs.20.

Definition of cost price

The price at which the item is purchased by us is known as cost price. It is given by CP. 

Meaning of cost price with examples

For you to understand cost price better, here are some examples.

For example, you bought a laptop for Rs 30,000. So the cost price is Rs. 30,000. Sometimes cost price may also include extra expenses such as transportation, repair costs, etc. So, if one buys a fridge at Rs 12,000 and spends Rs 500 for transport and Rs 500 for setting it up. Here the cost price is the sum of all the expenditure, that is, Rs 13,000. 

Profit percentage 

Profit percentage is calculated only when there is a profit. When the cost price of an item is less than the selling price, profit is considered.

This is the sole condition for profit on an item:

Selling Price > Cost Price

Loss percentage

Loss percentage is calculated only when there is a loss. When the selling price of an item is less than the cost price, loss is considered.

This is the sole condition for loss on an item:

Cost Price > Selling Price

Finding profit or loss when cost price and selling price are given

It’s very easy to find profit or loss when cost price or selling price is given. We just have to remember these simple formulae:

Net profit=SP- CP

Net loss=CP- SP

Finding cost price or selling price when profit or loss is given

When loss is given,

CP= Loss+ SP

SP=CP-Loss

When profit is given,

CP= SP- Profit

SP=Profit+CP

Finding profit or loss percentage

We can find profit or loss percentages from the following formulae.

Formula for calculating profit percentage:

Net profit = SP - CP

Profit =  \[\left ( \frac{(SP-CP)}{CP} \right )\times 100\]

Profit =\[ \left ( \frac{(Net Gain)}{CP} \right )\times 100\]

Formula for calculating loss percentage:

Net loss=CP- SP

Loss =\[ \left ( \frac{(CP-SP)}{CP} \right )\times 100\]

Loss = \[\left ( \frac{(Net loss)}{CP} \right )\times 100\]

Finding the selling price when cost price and profit or loss 

percentage is given

In order to find the SP when CP and profit or loss percentage is given, we need to follow the following steps.

When the loss percentage is given:

SP = CP-\[\frac{(Loss \times  CP)}{100}\]

When the profit percentage is given:

SP = CP + \[\left [ \frac{(Profit \times  CP)}{100} \right ]\]

Tips to Prepare for Exams Using RD Sharma Solutions For Class 7 Maths Chapter 12 

• A basic understanding of converting decimals to percentages and vice versa should be known thoroughly before attempting any questions of profit and loss.

• Since most of the problems are directly related to the formulas of profit and loss, students should remember all the important formulas and conversion units to score good marks from the profit and loss chapter.

• Students are advised to practice as many problems on different concepts of profit and loss to score good marks in their exams.

Conclusion

The concepts covered in the RD Sharma Class 7 Chapter 12 are according to the CBSE syllabus and NCERT curriculum. All the important questions and solutions are created by the faculty from Vedantu who have a lot of teaching experience and good subject knowledge. These RD Sharma Solutions For Class 7 Maths Chapter 12 will definitely help students to secure good marks in their board exams.