Welcome to Part 1 of the Profit and Loss Questions with Answers series. This practice set includes Questions 1–10, carefully designed for IBPS PO, SBI PO, RBI Assistant, LIC AAO, SSC CGL, RRB, and other competitive exams.
Each question is original and follows the latest banking exam pattern. Along with every question, you will find a step-by-step solution, a shortcut method, and a banking exam tip to help you solve similar questions quickly and accurately in the exam.
The questions in this part cover important Profit and Loss concepts such as cost price (CP), selling price (SP), profit percentage, loss percentage, effective cost price, additional expenses, damaged goods, marked price, discount, and reverse calculations. The difficulty level is moderate, making this practice set ideal for strengthening your fundamentals and improving your calculation speed.
Practice every question carefully, understand the concepts behind each solution, and try the shortcut methods to increase your efficiency. After completing this set, continue with the next parts of the series to master the entire Profit and Loss topic and build strong Quantitative Aptitude skills for competitive exams.
Table of Contents
Profit & Loss Questions (Premium Edition)
📌 Question 1
📝 Question
A trader purchased 400 electronic items at ₹750 each. He spent ₹30,000 on transportation and insurance. During transit, 20 items were damaged and sold at 60% of their effective cost price. The remaining items were sold at 25% above their effective cost price. Find the trader’s overall profit percentage.
📌 Given
- Quantity = 400
- Purchase price = ₹750 each
- Additional expenses = ₹30,000
- Damaged items = 20
- Damaged SP = 60% of effective CP
- Good items SP = 125% of effective CP
⚡ Shortcut Solution
Total effective CP:
400 × ₹750 + ₹30,000
= ₹3,30,000
Effective CP per item:
₹3,30,000 ÷ 400
= ₹825
SP of damaged items:
20 × ₹825 × 60%
= ₹9,900
SP of remaining items:
380 × ₹825 × 125%
= ₹3,92,625
Total SP:
₹9,900 + ₹3,92,625
= ₹4,02,525
Profit:
₹4,02,525 − ₹3,30,000
= ₹72,525
Profit %:
₹72,525 ÷ ₹3,30,000 × 100
= 21.98%
✅ Final Answer
21.98% Profit (Approx.)
📌 Question 2
📝 Question
A retailer marks an article 80% above its cost price. He offers successive discounts of 20%, 15%, and 10% and additionally pays 4% commission on the final selling price to an online marketplace. If his net profit is ₹8,640, find the cost price of the article.
📌 Given
- Markup = 80%
- Discounts = 20%, 15%, 10%
- Commission = 4%
- Net profit = ₹8,640
⚡ Shortcut Solution
Assume CP = ₹100.
Net amount received:
180% × 80% × 85% × 90% × 96%
= 105.7536% of CP
Profit = 5.7536%
Therefore,
5.7536% of CP = ₹8,640
CP = ₹8,640 × 100 ÷ 5.7536
= ₹1,50,000
✅ Final Answer
₹1,50,000
📌 Question 3
📝 Question
A trader sells an article at 20% profit. If he had purchased it for 10% less and sold it for ₹720 less, he would have earned a 25% profit. Find the original cost price.
📌 Given
- Original profit = 20%
- New CP = 90% of original CP
- New SP = original SP − ₹720
- New profit = 25%
⚡ Shortcut Solution
Let original CP = ₹x.
Original SP = 120% of x
New CP = 90% of x
New SP at 25% profit:
90% × 125%
= 112.5% of x
Difference between original and new SP:
120% − 112.5%
= 7.5% of x
Given difference = ₹720.
Therefore,
7.5% of x = ₹720
x = ₹720 × 100 ÷ 7.5
= ₹9,600
✅ Final Answer
₹9,600
📌 Question 4
📝 Question
A dishonest dealer buys goods using a weight that gives him 15% more goods than the quantity for which he pays. While selling, he gives only 800 g instead of 1 kg. He marks his goods 25% above cost price and offers a 12% discount. Find his overall profit percentage.
📌 Given
- Buying advantage = 15%
- Selling weight = 800 g instead of 1 kg
- Markup = 25%
- Discount = 12%
⚡ Shortcut Solution
Markup and discount factor:
125% × 88%
= 110%
Buying advantage:
= 1.15
Selling advantage:
1000 ÷ 800
= 1.25
Overall factor:
1.10 × 1.15 × 1.25
= 1.58125
Profit:
= 58.125%
✅ Final Answer
58.125% Profit
📌 Question 5
📝 Question
Two articles are sold for ₹9,600 each. The first is sold at a 20% profit, while the second is sold at a 20% loss. The trader then incurs an additional transportation expense of ₹480 on the entire transaction. Find the overall profit or loss percentage.
📌 Given
- SP of each article = ₹9,600
- First profit = 20%
- Second loss = 20%
- Additional expense = ₹480
⚡ Shortcut Solution
CP of first:
₹9,600 ÷ 1.20
= ₹8,000
CP of second:
₹9,600 ÷ 0.80
= ₹12,000
Total purchase CP:
= ₹20,000
Add transportation:
= ₹20,000 + ₹480
= ₹20,480
Total SP:
= ₹19,200
Loss:
= ₹20,480 − ₹19,200
= ₹1,280
Loss %:
= ₹1,280 ÷ ₹20,480 × 100
= 6.25%
✅ Final Answer
6.25% Loss
📌 Question 6
📝 Question
A manufacturer sells an article to a wholesaler at 20% profit. The wholesaler sells it to a retailer at 25% profit, and the retailer sells it to the customer at 20% profit. If the final customer price is ₹18,000, find the manufacturer’s cost price.
📌 Given
- Manufacturer’s profit = 20%
- Wholesaler’s profit = 25%
- Retailer’s profit = 20%
- Final SP = ₹18,000
⚡ Shortcut Solution
Overall factor:
120% × 125% × 120%
= 180%
Therefore,
180% of manufacturer’s CP = ₹18,000
Manufacturer’s CP:
= ₹18,000 ÷ 1.80
= ₹10,000
✅ Final Answer
₹10,000
📌 Question 7
📝 Question
A trader purchased 600 units at the same cost price per unit. He sold 40% of the units at 25% profit, 35% of the units at 10% loss, and the remaining units at 20% profit. Find his overall profit percentage.
📌 Given
- 40% units → 25% profit
- 35% units → 10% loss
- Remaining 25% units → 20% profit
⚡ Shortcut Solution
Since the cost price per unit is the same, use weighted profit.
Overall profit:
40% × 25%
− 35% × 10%
+ 25% × 20%
= 10% − 3.5% + 5%
= 11.5%
✅ Final Answer
11.5% Profit
📌 Question 8
📝 Question
A retailer purchases an article after receiving a 20% discount on its marked price. He spends 10% of the purchase price on transportation and repairs. He then marks the article 50% above the effective cost price and gives successive discounts of 20% and 10%. If his final profit is ₹5,400, find the marked price at which he originally purchased the article.
📌 Given
- Purchase discount = 20%
- Additional expenses = 10% of purchase price
- Markup on effective CP = 50%
- Selling discounts = 20%, 10%
- Profit = ₹5,400
⚡ Shortcut Solution
Let purchase price = ₹100.
Effective CP:
100 + 10%
= ₹110
Final SP:
110 × 150% × 80% × 90%
= ₹118.80
Profit:
118.80 − 110
= ₹8.80
Therefore,
8.80% of purchase price = ₹5,400
Purchase price:
= ₹5,400 × 100 ÷ 8.8
= ₹61,363.64
Since this purchase price represents 80% of the marked price:
Marked Price:
= ₹61,363.64 ÷ 0.80
= ₹76,704.55
✅ Final Answer
₹76,704.55 (Approx.)
📌 Question 9
📝 Question
A trader purchased 800 kg of a commodity at ₹120 per kg. During storage, 10% of the commodity was lost. He sold half of the remaining quantity at 25% profit and the rest at 10% loss. Find his overall profit percentage.
📌 Given
- Quantity = 800 kg
- CP = ₹120/kg
- Loss of quantity = 10%
- 50% remaining → 25% profit
- 50% remaining → 10% loss
⚡ Shortcut Solution
Total CP:
800 × ₹120
= ₹96,000
Remaining quantity:
800 × 90%
= 720 kg
Each portion:
720 ÷ 2
= 360 kg
SP of first portion:
360 × ₹120 × 125%
= ₹54,000
SP of second portion:
360 × ₹120 × 90%
= ₹38,880
Total SP:
= ₹92,880
Loss:
= ₹96,000 − ₹92,880
= ₹3,120
Loss %:
= ₹3,120 ÷ ₹96,000 × 100
= 3.25%
✅ Final Answer
3.25% Loss
📌 Question 10
📝 Question
A shopkeeper marks an article 60% above its cost price. He offers successive discounts of 20% and 10%. After the sale, he gives the customer a cashback equal to 5% of the billed amount. If his actual profit is ₹2,280, find the cost price of the article.
📌 Given
- Markup = 60%
- Discounts = 20%, 10%
- Cashback = 5% of billed amount
- Actual profit = ₹2,280
⚡ Shortcut Solution
Assume CP = ₹100.
Billed amount:
160% × 80% × 90%
= 115.2
Cashback:
5% of ₹115.2
= ₹5.76
Actual amount received:
115.2 − 5.76
= ₹109.44
Actual profit:
109.44 − 100
= 9.44%
Therefore,
9.44% of CP = ₹2,280
CP:
= ₹2,280 × 100 ÷ 9.44
= ₹24,152.54
✅ Final Answer
₹24,152.54 (Approx.)
Recommended Reading
100 Profit and Loss Question with answers
Part 2: Profit and Loss Questions with Answers (Questions 11–20)
👑 Challenge Question
A trader purchased 800 electronic components at ₹500 each. He spent ₹40,000 on transportation and insurance. During transit, 10% of the components were damaged and sold at 40% of their effective cost price.
Of the remaining components, he sold 60% at a 25% profit. The remaining components were sold through an online marketplace that deducted 8% commission on the selling price.
If the trader earned an overall profit of 16%, find the selling price per component charged on the remaining stock before commission.
Try solving it without looking for the answer first.
⚡ Shortcut Trick of the Day
Successive Profit & Discount Factor
When multiple percentage changes are applied one after another, never add the percentages directly.
For example:
+50%, −20%, −10%
Use:
1.50 × 0.80 × 0.90 = 1.08
Therefore, the final value is 108% of the original value.
So the net result is:
8% increase
This multiplier method is especially useful for marked price, successive discounts, commission, cashback, and profit-loss questions.
🏦 Banking Exam Tip
In difficult Profit & Loss questions, identify the base of every percentage before calculating.
For example:
- Profit % → usually based on Cost Price
- Discount % → based on Marked Price
- Commission % → usually based on Selling Price
- Additional expenses → added to Cost Price
- Damage/loss of stock → cost of damaged goods does not disappear from total CP
A large number of mistakes in Banking Mains questions happen because candidates apply the correct percentage to the wrong base.
❓ Frequently Asked Questions
Q1. Should transportation and insurance be included in Cost Price?
Yes. When these expenses are incurred to acquire, transport, or prepare the goods for sale, they should generally be included in the effective cost price.
Q2. How should successive discounts be calculated?
Successive discounts must be applied one after another.
For example, 20% and 10% discounts:
100 × 80% × 90% = 72
So the effective discount is 28%, not 30%.
Q3. How are damaged goods treated in overall Profit & Loss questions?
The original purchase cost of the damaged goods remains part of the total cost. If damaged goods are sold, their recovery is included in the total selling price.
Q4. Why are multiplier methods useful in Banking exams?
They allow several percentage changes to be combined quickly and reduce lengthy calculations, especially in questions involving markup + discount + commission + cashback
