Profit Loss Discount and Commission

  • Profit and Loss

    For the purpose of comparison, we usually express the actual profits or loss as a percentage of cost price. For example, a shopkeeper sold an article for Rs.60 which costs Rs.50 and another article sold for Rs.110 which cost Rs.100. In each case, shopkeeper makes a profit of Rs.10. It seems that in both cases […]

  • Concept of Discount

    It is usually seen that the retailers cannot sell defective items, old items, etc. at the retail-selling price. If these items are sold at lower price, then it is called sale price. The difference between marked price (selling price) and the sale price, is called discount. In other words, a reduction in the price of […]

  • Concept of Commission

    A commission is the payment, an agent gets for selling or buying something on behalf of another person. It is usually written as a percentage of cost price or selling price. Example: An agent got 2% commission on selling a plot for 1000000. Find his commission. Solution: Let       Sale Price = 1000000 Commission Rate […]