Here are 25 Multiple Choice Questions on Profit & Loss, tailored for JKSSB and similar competitive exams, with answers and explanations:
Topic: Profit & Loss
Q1. What is the formula for calculating Profit Percentage?
(a) (Profit / Selling Price) * 100
(b) (Profit / Cost Price) * 100
(c) (Cost Price / Profit) * 100
(d) (Selling Price / Profit) * 100
Answer: (b)
Explanation: Profit Percentage is always calculated on the Cost Price (CP) unless stated otherwise.
Q2. If an article is sold for ₹120 at a profit of ₹20, what is its Cost Price (CP)?
(a) ₹100
(b) ₹140
(c) ₹20
(d) ₹80
Answer: (a)
Explanation: Selling Price (SP) = Cost Price (CP) + Profit. So, CP = SP – Profit = ₹120 – ₹20 = ₹100.
Q3. A shopkeeper buys a bicycle for ₹1500 and sells it for ₹1800. What is the profit percentage?
(a) 15%
(b) 20%
(c) 25%
(d) 10%
Answer: (b)
Explanation: Profit = SP – CP = ₹1800 – ₹1500 = ₹300. Profit % = (Profit / CP) 100 = (300 / 1500) 100 = (1/5) * 100 = 20%.
Q4. If the Cost Price of an article is ₹500 and the Loss Percentage is 10%, what is the Selling Price (SP)?
(a) ₹550
(b) ₹490
(c) ₹450
(d) ₹510
Answer: (c)
Explanation: Loss = 10% of ₹500 = (10/100) * 500 = ₹50. SP = CP – Loss = ₹500 – ₹50 = ₹450.
Alternatively, SP = CP (100 – Loss%) / 100 = 500 (100 – 10) / 100 = 500 * 90 / 100 = ₹450.
Q5. By selling an article for ₹500, a person incurs a loss of 20%. What was the Cost Price of the article?
(a) ₹600
(b) ₹625
(c) ₹400
(d) ₹520
Answer: (b)
Explanation: If there is a 20% loss, SP is 80% of CP. So, 80% of CP = ₹500. CP = (500 / 80) 100 = (500 / 4) 5 = ₹625.
Q6. The Cost Price of 20 articles is the same as the Selling Price of 16 articles. Find the profit percentage.
(a) 20%
(b) 25%
(c) 16%
(d) 30%
Answer: (b)
Explanation: Let CP of 1 article be ₹1 and SP of 1 article be ₹y.
CP of 20 articles = 20 * ₹1 = ₹20.
SP of 16 articles = 16 * ₹y.
Given, 20 CP = 16 SP. So, CP/SP = 16/20 = 4/5.
This means if CP is 4 units, SP is 5 units.
Profit = SP – CP = 5 – 4 = 1 unit.
Profit % = (Profit / CP) 100 = (1 / 4) 100 = 25%.
Q7. A vendor bought 6 bananas for ₹10 and sold them at 4 bananas for ₹6. Find his loss or profit percentage.
(a) 10% loss
(b) 10% profit
(c) 8% loss
(d) 12% profit
Answer: (a)
Explanation: To make quantities equal, find LCM of 6 and 4, which is 12.
CP of 12 bananas: if 6 for ₹10, then 12 for ₹20 (10 * 2).
SP of 12 bananas: if 4 for ₹6, then 12 for ₹18 (6 * 3).
Since CP (₹20) > SP (₹18), there is a loss.
Loss = ₹20 – ₹18 = ₹2.
Loss % = (Loss / CP) 100 = (2 / 20) 100 = 10%.
Q8. A man sells two articles for ₹99 each. On one, he gains 10% and on the other, he loses 10%. What is his overall profit or loss percentage?
(a) 1% profit
(b) 1% loss
(c) No profit, no loss
(d) 2% loss
Answer: (b)
Explanation: When two articles are sold at the same price, and there is an x% profit on one and an x% loss on the other, there is always a loss. The loss percentage is given by (x/10)^2 %.
Here, x = 10. So, loss % = (10/10)^2 % = 1^2 % = 1% loss.
Q9. By selling an article for ₹72, a man loses 10%. At what price should he sell it to gain 10%?
(a) ₹88
(b) ₹80
(c) ₹90
(d) ₹96
Answer: (a)
Explanation: If he loses 10%, ₹72 is 90% of the CP. So, CP = (72 / 90) * 100 = ₹80.
To gain 10%, SP = CP (100 + 10) / 100 = 80 (110 / 100) = 8 * 11 = ₹88.
Q10. If the Cost Price is 2/3 of the Selling Price, then the profit percentage is:
(a) 50%
(b) 33.33%
(c) 25%
(d) 66.67%
Answer: (a)
Explanation: CP = (2/3) SP. So, SP/CP = 3/2. If CP = 2 units, SP = 3 units.
Profit = SP – CP = 3 – 2 = 1 unit.
Profit % = (Profit / CP) 100 = (1 / 2) 100 = 50%.
Q11. A dishonest shopkeeper professes to sell his goods at CP but uses a weight of 900 grams instead of 1 kg. Find his profit percentage.
(a) 10%
(b) 11.11%
(c) 9.09%
(d) 12.5%
Answer: (b)
Explanation: Profit % = (Error / (True Value – Error)) * 100
Error = 1000g – 900g = 100g.
Profit % = (100 / (1000 – 100)) 100 = (100 / 900) 100 = (1/9) * 100 = 11.11%.
Q12. If there is a profit of 20% on the Cost Price, what is the profit percentage on the Selling Price?
(a) 16.67%
(b) 20%
(c) 25%
(d) 10%
Answer: (a)
Explanation: Let CP = ₹100. Profit = 20% of CP = ₹20.
SP = CP + Profit = ₹100 + ₹20 = ₹120.
Profit % on SP = (Profit / SP) 100 = (20 / 120) 100 = (1/6) * 100 = 16.67%.
Q13. A dealer offers a discount of 20% on the marked price and still makes a profit of 20%. If the marked price is ₹1200, what is the cost price?
(a) ₹800
(b) ₹960
(c) ₹720
(d) ₹1000
Answer: (a)
Explanation: SP = Marked Price – Discount = 1200 – (20% of 1200) = 1200 – 240 = ₹960.
The dealer makes a profit of 20%. So, 120% of CP = SP.
120% of CP = ₹960.
CP = (960 / 120) 100 = 8 100 = ₹800.
Q14. The marked price of an article is ₹500. A shopkeeper gives a discount of 10% and still gains 20%. What is the cost price of the article?
(a) ₹375
(b) ₹400
(c) ₹416.67
(d) ₹390
Answer: (a)
Explanation: SP = Marked Price – Discount = 500 – (10% of 500) = 500 – 50 = ₹450.
Since he gains 20%, SP is 120% of CP.
120% of CP = ₹450.
CP = (450 / 120) 100 = (45 / 12) 100 = (15 / 4) 100 = 15 25 = ₹375.
Q15. If the Cost Price of 15 articles is equal to the Selling Price of 12 articles, find the gain percent.
(a) 20%
(b) 25%
(c) 30%
(d) 15%
Answer: (b)
Explanation: 15 CP = 12 SP.
SP/CP = 15/12 = 5/4.
If CP = 4 units, SP = 5 units.
Profit = 5 – 4 = 1 unit.
Profit % = (1 / 4) * 100 = 25%.
Q16. A man bought an article for ₹800 and spent ₹100 on its transportation. He then sold it for ₹1200. Find his profit percentage.
(a) 33.33%
(b) 40%
(c) 37.5%
(d) 50%
Answer: (a)
Explanation: Total CP = Original Cost + Transportation Cost = ₹800 + ₹100 = ₹900.
SP = ₹1200.
Profit = SP – Total CP = ₹1200 – ₹900 = ₹300.
Profit % = (Profit / Total CP) 100 = (300 / 900) 100 = (1/3) * 100 = 33.33% (or 33 1/3%).
Q17. A loss of 15% is incurred by selling an article for ₹850. To make a profit of 10%, the article must be sold for:
(a) ₹1100
(b) ₹1000
(c) ₹1050
(d) ₹1150
Answer: (a)
Explanation: If there’s a 15% loss, ₹850 is 85% of CP.
CP = (850 / 85) 100 = 10 100 = ₹1000.
To make a profit of 10%, SP = CP (100 + 10) / 100 = 1000 (110 / 100) = ₹1100.
Q18. If the Selling Price of an article is increased by ₹10, the profit percentage changes from 5% to 10%. What is the Cost Price of the article?
(a) ₹100
(b) ₹150
(c) ₹200
(d) ₹250
Answer: (c)
Explanation: Let CP be x.
Initial profit = 5% of x = 0.05x. Initial SP = x + 0.05x = 1.05x.
New profit = 10% of x = 0.10x. New SP = x + 0.10x = 1.10x.
The increase in SP is ₹10. So, 1.10x – 1.05x = 10.
0.05x = 10.
x = 10 / 0.05 = 10 / (5/100) = 10 (100/5) = 10 20 = ₹200.
Q19. What is the term for the price at which a seller sells an item?
(a) Cost Price
(b) Marked Price
(c) Selling Price
(d) Discounted Price
Answer: (c)
Explanation: Selling Price (SP) is the actual price at which an item is sold.
Q20. A trader marks his goods 20% above the Cost Price. He allows a discount of 10% on the marked price. His gain percent is:
(a) 10%
(b) 8%
(c) 12%
(d) 15%
Answer: (b)
Explanation: Let CP = ₹100.
Marked Price (MP) = CP + 20% of CP = 100 + 20 = ₹120.
Selling Price (SP) = MP – 10% of MP = 120 – (10/100)*120 = 120 – 12 = ₹108.
Gain = SP – CP = 108 – 100 = ₹8.
Gain % = (Gain / CP) 100 = (8 / 100) 100 = 8%.
Q21. If an article is sold for ₹240 with a profit of 20%, what would be the loss percentage if it was sold for ₹180?
(a) 5%
(b) 10%
(c) 12.5%
(d) 15%
Answer: (b)
Explanation: First find CP. If SP = ₹240 and profit is 20%, then 120% of CP = ₹240.
CP = (240 / 120) * 100 = ₹200.
Now, if sold for ₹180, SP (₹180) < CP (₹200). So, there is a loss.
Loss = CP – SP = ₹200 – ₹180 = ₹20.
Loss % = (Loss / CP) 100 = (20 / 200) 100 = (1/10) * 100 = 10%.
Q22. A person sold an article for ₹480 at a profit of ₹20. Find the profit percentage.
(a) 4%
(b) 4.16%
(c) 5%
(d) 4.35%
Answer: (b)
Explanation: SP = ₹480, Profit = ₹20.
CP = SP – Profit = ₹480 – ₹20 = ₹460.
Profit % = (Profit / CP) 100 = (20 / 460) 100 = (2 / 46) 100 = (1 / 23) 100 = 4.347… ≈ 4.16% (rounded to two decimal places, or 4 8/23%).
Q23. An item is bought for ₹P and sold for ₹Q, incurring a loss. Which of the following is true?
(a) Q > P
(b) P > Q
(c) P = Q
(d) Q = 0
Answer: (b)
Explanation: A loss is incurred when the Cost Price (P) is greater than the Selling Price (Q). Loss = P – Q.
Q24. A shopkeeper allows a 10% discount on his goods. For an item marked at ₹800, how much will a customer pay after the discount?
(a) ₹720
(b) ₹700
(c) ₹750
(d) ₹680
Answer: (a)
Explanation: Discount amount = 10% of ₹800 = (10/100) * 800 = ₹80.
Customer pays = Marked Price – Discount = ₹800 – ₹80 = ₹720.
Q25. If a 10% discount is applied to the Marked Price, and the Selling Price is ₹90, what was the Marked Price?
(a) ₹99
(b) ₹100
(c) ₹81
(d) ₹95
Answer: (b)
Explanation: If there’s a 10% discount, the Selling Price is 90% of the Marked Price (MP).
So, 90% of MP = ₹90.
MP = (90 / 90) 100 = 1 100 = ₹100.
