Profit and loss is the record of the details regarding the expenses and revenue in a

particular period. The investors and creditors consider the profit and loss to understand
the risk level before they join any business. The statement also signifies the loss and
profit which have to be taxed for IRS use.
Thus, the investors can easily decide if a business is doing well or not through Profit and
Loss. The traders can gauge whether buying a company’s share is worth it. This
important information is mentioned in the balance sheet of the company.
It also reports the assets of a company, shareholder’s equity and statement of cash flow,
and liabilities. So, any imbalance in profit and loss means that there are problems in the
company’s operations.

1. The profit and loss account of a company signifies the following.

A. Profit and loss occurred from the sale of the company’s assets
B. Profit and loss faced by the business or company
C. Total capital put by the company
D. None of the above
Answer 2. Profit and loss faced by the business or company

2. The expenditure of the revenue of a company or a business is recorded in

which of the following?
A. Balance sheet
B. Trading account
C. Account of profit and loss
D. None of these
Answer 3. account of profit and loss

1. A person sells the car to another person at a loss of 10%. If the second
person sells the car for Rs. 54000 and receives a 20% gain, what’s the
actual price of the car?

A. Rs. 60000
B. Rs. 25000
C. Rs. 75000
D. Rs. 50000
Answer 4. Rs. 50000

1. If the selling price of 12 books is equivalent to the cost price of 18 copies,

then calculate the profit per cent.

A. 40%
B. 50%
 C. 44%
D. 20%
Answer 2. 50%

1. The cost price of 20 shoes is equivalent to the selling price of x shoes. What
is the value of x if the profit percentage is 25%?

A. 25
B. 20
C. 19
D. 16
Answer 4. 16

1. Increase of debit in the profit and loss is also called _____.

A. Gross Profit
B. Gross Loss
C. Net Profit
D. Net Loss
Answer 4. Net Loss

1. The selling price of two bicycles each is Rs. 3990, one with a gain of 54%
and another with a loss of 5%. What is the loss and gain transaction on the
total transaction?

A. No gain and no loss

B. 2.55 loss
C. 0.25% loss
D. 2.55% gain
Answer 3. 0.25% loss
1. Rick bought cold drinks of Rs. 56000. Then he sold 1/3rd of the total
purchase to a 40% loss. How much profit does he need to earn on the
remaining cold drinks to cover the loss?

A. 20%
B. 45%
C. 60%
D. 40%
Answer 1. 20%
 1. In a clothing store, the profit percentage is 320% of the price. If its selling
price remains the same and costs increase by up to 25%, then what
percentage of the selling price will become profit?

A. 100%
B. 20%
C. 70%
D. 50%
Answer 3. 70%
1. The balance between the loss and profit account is transmitted to _________.

A. Cash Flow Statement

B. Trial Balance
C. Trading Account
D. Balance Sheet
Answer 4. Balance Sheet

1. A book store sells 40 books at a profit of 10%. It earns a profit of 20% from
the sale of these 40 books. However, he got 160 books at a price of 100.
What profit should the owner sell the other books?

A. 70/3%
B. 190/52%
C. 100/3%
D. 30%
Answer 1. 70/3%
1. The capital expenditure is a part of which of the following statement?

A. Trial balance
B. Balance Sheet
C. Account of Profit and Loss
D. Trading Account
Answer 2. Trading account

1. The reduction in the price of rice by 20% helps Rita to buy 6 kg more at the
price of 240. Calculate the actual price of sugar per kg.

A. Rs. 12 per kg
B. Rs. 5 per kg
C. Rs. 10 per kg
D. Rs. 15 per kg
Answer 3. Rs. 10 per kg
 14. Ankit wants to receive a profit of 15% on the sale of tea. He buys 120 kg of
tea at Rs. 24 kg and then mixes it with 180 kg of tea, which he bought at the
price of Rs. 28 on per kg. At what price does he sell the mix of tea?
A. Rs. 9108
B. Rs. 8159
C. Rs. 9674
D. Rs. 8500
Answer 1. 9108

15. The owner of the plot faces a loss of 15% and sells it at 18700. What should
be the price at which the plot should be sold to receive a profit of 15%?

A. Rs. 25800
B. Rs. 25300
C. Rs. 21500
D. Rs. 2600
Answer 2. Rs. 25300

16. What is the profit if A sells glass bottles at a 6% profit to B and B again sells
the same glass bottles to C with a profit of 9%?

A. 15.54%
B. 15%
C. 14%
D. 15.45%
Answer 1. 15.54%

17. Rima sold an AC to Natasha with a profit of 25%. Then, Natasha faced a loss
of 15% by selling the AC to Rohit. Rima spent an amount of Rs. 50000 for
that AC. So what was the price of that AC when Rohit bought it?

A. Rs. 60000
B. Rs. 53125
C. Rs. 85000
D. Rs. 52500
Answer 2. 53125

18. Alice suffered a 20% loss by selling the vase at the price of 2880. If she
wants to gain a profit of 20%, what should be its selling price?

A. Rs. 3500
B. Rs. 4000
 C. Rs. 4320
D. Rs. 5600
Answer 3. Rs. 4320

19. A trader has 200 kg of rice available, and he sells some amount at a profit of
10% and then the rest at 25% profit. As a whole, he gains a profit of 15%.
What is the total quantity of rice sold at a profit of 25%?

A. 95 kg
B. 67 kg
C. 35 kg
D. None of the above
Answer 2. 67 kg
20. Junaid buys a motorbike at a price of Rs. 5000 and spends around Rs. 4000
for its repairing. What will be the gain percentage if he also sells his bicycle
at Rs. 60000?

A. 11(1/9)%
B. 12%
C. 4/7%
D. 3%
Answer 1. 11(1/9)%
21. Ritesh sells stickers at a price of 20 stickers for Rs. 1. How many stickers
did he buy at the price of Rs. 1 if he earns a profit of 20%?
A. Rs. 36
B. Rs. 89
C. Rs. 16
D. Rs. 24
Answer 4. Rs. 24
22. Sheena buys toffees at a price of Rs. 4 each. She again buys the same
amount of toffees at Rs. 5. Then, she mixes them in a basket and sells them
at Rs. 4. What will she get profit or loss? Also, how much profit or loss will
she get?
A. Loss- 100/9%
B. Profit- 100/9%
C. Loss- 110/8%
D. Profit- 119/6%
Answer 2. Profit 100/9%
 23. Ritu bought a 30 kg amount of wheat at a price of Rs. 22 per kg. She also
bought 20 kg of wheat at a price of 24 kg. Then, she mixed them together.
So, what should be the price of wheat per kg to gain a profit of 25%?
A. Rs. 30
B. Rs. 25
C. Rs. 32
D. Rs. 28
Answer 4. Rs. 28
24. A girl pays an amount of Rs. 369 for an article priced at Rs. 600 and got two
discounts. At first, he got a discount of 25%, so what is the second amount?
A. 18%
B. 10%
C. 20%
D. None of the above
Answer 1. 18%
25. If Jim sells a match ticket at a price of Rs. 340 with a 25% profit, so what is
the actual price of the ticket?
A. Rs. 255
B. Rs. 280
C. Rs. 272
D. Rs. None of the above
Answer 3. Rs. 272
26. Geeta sells a cupboard at around 14 below the cost price. If she received rs.
2086 extra, then she could have made a 14% profit. What is the actual cost
price of the particular cupboard?
A. Rs. 14500
B. Rs. 7500
C. Rs. 7450
D. Rs. 7000
Answer 3. Rs. 7450
27. A man sells an electronic item with a discount rate of 25%. At what
percentage upon the cost price she should sell that same item to gain a
profit of 25% upon the listed price?
A. Rs. 66.667
B. Rs. 25
C. Rs. 40
D. Rs. 33.333
Answer 1. 66.667
 28. A man buys 45 oranges at the cost of Rs. 40 and faces a loss of 20%. How
much price does he need to sell 24 oranges to gain a profit of 20%?
A. Rs. 20
B. Rs. 18
C. Rs. 32
D. Rs. 20
Answer 3. 32