1. Profit and Loss 2. Discount 3. Overhead Expenses 4. Goods and Services Tax (GST)

**Profit,
Loss, Discount, Overhead Expenses and GST**

** **

__1. Profit
and Loss__

**Try these**

• If the selling price of an article is less than the cost price
of the article, then there is a ________.

**Solution: **Loss

• An article costing ₹5000 is sold for ₹4850. Is there a profit or
loss? What percentage is it?

**Solution: **Loss

Percentage of Loss = [ (C.P – S.P) / C.P ] × 100

= [(5000 – 4850) / 5000] × 100

= [150 / 5000] × 100 = 3%

• If the ratio of cost price and the selling price of an article
is 5:7, then the profit/ gain is_________%.

**Solution: **

C.P = 5*x*

S.P = 7*x*

Profit = 7*x *– 5*x* = 2*x*

Profit Percentage = 7*x *– 5*x* = [ 2*x* / 5*x*
] × 100 = 40%

**Cost Price (C.P)**

The amount
for which an article is bought is called its ** Cost Price**
(C.P).

**Selling Price (S.P)**

The amount
for which an article is sold is called its ** Selling Price**
(S.P).

**Profit or Gain**

When the
*S.P* is more than the *C.P,* then there is a ** profit or gain**.

Therefore,
Profit/Gain = S.P − C.P

**Loss**

When the
*S.P* is less than the *C.P,* then there is a ** loss**.

Therefore,
Loss = C.P − S.P

It is to
be noted that the profit or loss is always calculated on the cost price.

**Formulae:**

** **

__2. Discount__

During the
month of Aadi and festival seasons, shopkeepers offer a certain percentage of rebate
on the marked price of the articles in order to increase the sales and also to clear
the old stock. This rebate is known as ** discount**.

**Marked price**

In big shops
and departmental stores, we see that every product is tagged with a card and a price
marked on it. This price marked on the card is called the ** marked
price**.

Based on
this marked price, the shopkeeper offers a certain percentage of discount. The price
payable by the customer after deduction of discount is called the ** selling price**.

That is,
Selling Price = Marked Price – Discount

__3. Overhead
Expenses__

Traders,
retailers and shopkeepers are involved in the buying and selling of goods. Sometimes,
when articles like machinery, furniture, electronic items etc., are bought, a few
expenses may happen on their repairs, transportation and labour charges etc., These
expenses are included in the cost price and are called as *overhead
expenses.*

Total Cost Price = Cost Price + Overhead Expenses

Discount
% = [ Discount / marked price ] × 100%

** **

__4. Goods
and Services Tax (GST)__

The goods and services tax (GST) is the only common tax
in India levied on almost all the goods and the services meant for domestic consumption.
The GST is remitted by the traders and the consumers alike and is also one of the
main sources of income to both the Central and State Governments.There are 3 types
of GST namely Central GST (CGST), State GST (SGST) and Integrated GST (IGST). For
union territories, there is UTGST.

The GST is
shared by the Central and the State Governments equally. There are also many products
like Egg, Honey, Milk, Salt etc., which are exempted from GST. Products like Petrol,
Diesel etc., do not come under GST and they are taxed separately. The GST council
has fitted over 1300 goods and 500 services under four tax slabs namely 5%, 12%,
18% and 28%.

Tags : Life Mathematics | Chapter 4 | 8th Maths , 8th Maths : Chapter 4 : Life Mathematics

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8th Maths : Chapter 4 : Life Mathematics : Profit, Loss, Discount, Overhead Expenses and GST | Life Mathematics | Chapter 4 | 8th Maths

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