RS Aggarwal Class 8 Solutions Chapter 10

Important Topics for RS Aggarwal Class 8 Solutions Chapter 10: Profits and Loss

Cost Price, Selling Price, and Marked Price

Cost The price of an item is how much it really costs to make or buy that item. For example, it costs Rs.100 to make a chair. It means that the shop owner who is selling that chair bought it for Rs.100 from the maker or made it himself. This includes taxes, fees for labor, and transportation costs.

The price at which an item is sold to a customer is called its selling price. For example, if a shopkeeper sells a chair to a customer for Rs.200, the chair’s selling price for that customer is Rs.200. The shopkeeper could sell the same chair to another customer for, say, Rs. 150 less. The chair would cost Rs. 150 to sell at that point. How much a shopkeeper or seller makes or loses depends on how much they charge for their goods.

Marked Price is the price that is written on something. For example, if a store sells chairs and puts a price tag on each one, this is a form of advertising. Then, that price is known as the chair’s marked price. A product’s selling price and its marked price might not be the same. The shopkeeper might sometimes take a discount off the price written on the item, so the price at which the item is sold might be different than the price written on the item.

Computing the Cost Price

• If we know the Selling Price of an item and profit from selling it, then,
• Cost Price = Selling Price – profit
• If we have the Selling Price of an article and loss on its selling then,
• Cost Price = Selling Price + Loss

Computing the Selling Price

If you know the item’s Cost Price and how much profit when it was sold, you can figure out its Selling Price by adding its Cost Price and its profit.

• Selling Price = Cost Price + Profit
• If we have the Cost Price of an article and loss on its selling then,
• Selling Price = Cost Price – Loss

What is a profit and what is a loss?

Profit is simply the extra money a business owner makes when the selling price is higher than the cost price.

• When S.P > C. P
• S.P – C.P = Profit
• When someone sells an item for less than what they bought it for or what it cost them, they have made a loss.
• When C.P > S.P
• C.P – S.P = Loss

How to Figure Out the Profit Percentage

The formula makes it easy to figure out the percentage of profit.

• Profit % = (Profit/C.P x 100)%

With the information given, you can also figure out the selling price and the cost price. The formula is,

• Selling Price = (100 + Profit%) / 100 × CP
• Cost Price = 100/ (100 + gain %) × Cost Price

Getting the percentage of loss

The formulas below make it easy to figure out the loss percentage:

• Loss % = (loss/ CP × 100)%

From the information given, you can also figure out the item’s selling price and cost price.

• Selling Price = (100 – loss %) /100 × CP
• Cost Price = 100 /(100 – loss %) × SP

How to figure out Value-Added Tax (VAT)

The government must be paid VAT = (Output VAT- Input VAT)

Output VAT means the tax that is paid when goods are sold. The output VAT is added to the price of the goods when they are sold.

Input VAT = The tax you pay when you buy something is what Input VAT stands for. The cost price of the goods is used to figure out how much VAT is due.