Application To Profit And Loss


ABOUT:

Ratio, Proportions, Percentage are used in expressing Profit and loss

Profit and loss:

Profit: Money earned

Loss: Money lost

Seetha bought two apples for 10 Rs, if she sells it to Dinesh at 15 Rs then she makes profit of 5 Rs, if she sells it to Dinesh for 5 Rs then she makes loss of 5 Rs.

Thus Profit and Loss helps us in understanding impact of a transaction in real life.

Here in transaction 1, Profit = (15 -10)/10=1/2= 50/100= 50%

Similarly Loss in transaction 2 is 50%