## RD Sharma Solutions For Class 7 Maths Chapter 12

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

**1. What is the formula of profit and loss?**

It is very important for students to remember the formula of profit and loss for solving all the questions of profit and loss very easily. It is very important to familiarize ourselves with the concepts of profit and loss to get an idea about how the business world works. The term 'Profit and Loss' is very relevant in our lives.

The formulas are as follows:

The formula for profit is SP-CP.

The formula for loss is CP-SP.

Students are advised to remember these formulas for their exams.

**2. What are some profit and loss examples?**

There are many real-life examples to explain the concepts of profit and loss. Transactions happen everywhere. All businesses run on this concept thus it is of utmost importance for students to understand this concept very well, not only to score well in examinations but to live their life.

An example is: If you buy a pen for Rs.7 and sell it for Rs. 10, you make a profit of Rs. 3. Whereas loss is considered if you sell the pen for a price lesser than Rs. 5 say, Rs.3. Here you make a loss of Rs.2 then.

**3. What is CP and SP in profit and loss?**

CP and SP are the terms that are commonly used in profit and loss questions.

CP or Cost Price is the price at which you buy the item.

SP or Selling Price is the price at which you sell the item.

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

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

**When the loss percentage is given:**

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

**When the profit percentage is given:**

CP=\[\frac{SP\times 100}{Profit percent+100}\]

Thus, they stand for the prices that are used in a transaction, business or exchange which involves profit or loss or none at all.