Introduction to Buying and Selling

Ram went to the market and bought a t-shirt for rupees.

After few days, Ram’s friend Rohit came to his house and saw his t-shirt.

He asked Ram to sell his t-shirt to him.

And with the motive of earning some profit, Ram decided to sell the t-shirt for rupees.

In this situation, Ram bought the t-shirt for Rs ,so the cost price(CP) of the t-shirt is Rs .

So we define C.P.(Cost price) as the price at which any material is bought by the person.

And Ram sold his t-shirt for Rs , so we can say that the selling price(SP) of the t-shirt is Rs .

So we define Selling price as the price at which a product or service is sold to the buyer.

For this case,

If the cost price is less than the selling price, the seller gains money and we term this as profit.

Let’s, try to understand this with another example.

Suppose, Sam buys a pair of shoes for . So is the Cost Price of the shoes.

And then he sold that pair of shoes for rupees, which is the selling price of the shoes.

Here, we observe that the cost price of the object or item is more than the selling price.

In this situation, Sam did not gain any money and we mention it as loss.

So, if cost price is greater than selling price, we find the total loss as

Similarly, we can find the total profit on an object as

Now, when the cost price is equal to the selling price then there is no profit or loss.

Revision

If cost price is greater than selling price, we find the total loss as

Similarly, we can find the total profit on an object when sp is greater than cp

And if cost price is equal to selling price then we have no profit and no loss.

The End