An **income statement** or **profit and loss account** (also referred to as a * profit and loss statement* (P&L),

*,*

**statement of profit or loss***,*

**revenue statement***,*

**statement of financial performance***,*

**earnings statement***,*

**statement of earnings***, or*

**operating statement***) is one of the financial statements of a company and shows the companyâ€™s revenues and expenses during a particular period. Source:*

**statement of operations**

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## Videos on Profit and Loss

#### Aptitude Made Easy – Profit & Loss â€“ Basics and Methods, Profit and loss shortcuts, Math tricks

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Cost Price ( CP): Price at which the seller brought the product. Selling Price ( SP): Price at which the seller sells the product to you or the customer. Marked Price ( MP): It is the price displayed on the product. ( Also, called MRP ) Profit ( P): When SP > CP, the seller makes a profit. **P = SP â€“ CP ; P% = ( P / CP ) x 100**

- Loss ( L ) : When SP < CP, seller suffers a loss.

**L = CP â€“ SP ; L% = ( P / CP ) x 100** Remember that both profit and loss are always calculated on the cost price of the product. Discounts ( D): The concession given by the seller on the market price ( MP ) of the product is called discount. SP = MP â€“ Discount Markup = MP â€“ CP ; Markup % = Â [ ( MP â€“ CP ) / CP ] x 100

- Remember that discount percentages are always calculated on the Marked Price ( MP ) of the product.

The main formula for this is as follows : **Initial Value ( CP ) x Multiplication Factor ( MF ) = Final Value ( SP )** For two successive profits or losses on an item, the formula for the resultant profit/loss % is:-Â Â **x + y + ( xy / 100)** **Note: Both â€˜xâ€™ and â€˜yâ€™, here are profit/loss percentages, as given in the question. For-profit use â€˜+â€™ sign and for loss use â€˜â€“â€™ sign. If the result is in + then, there is an overall profit, if it is in â€˜â€“â€™ then there is an overall loss.** For more than two successive profits or losses on an item, the above formula for resultant profit/loss % is applied iterative-ly.

- If two items, which have theÂ
**same CP**, are sold such that one is at a profit of x% whereas the other is at a loss of x%. Then in the entire transaction, the sellerÂ**neither suffers a loss nor receives profit**. - However, if two items with theÂ
**same SP**, areÂ sold such that one is at a profit of x% whereas the other is at a loss of x%. Then in the entire transaction, theÂ**seller suffers a loss**, which is given by the following formula:-

**Overall Loss% = x^2 / 100Â [ square of the common profit or loss % divided by 100 ]**