Introduction to Profit & Loss

Welcome to our comprehensive Profit and Loss course! Whether you’re an entrepreneur, financial analyst, or simply interested in mastering finances, this course is your guide. We’ll start with the basics, covering revenue, expenses, and net profit. Then, we’ll dive into advanced topics like profit margins, cost analysis, and financial ratios, using real-world examples. By the end, you’ll not only understand profit and loss principles but also how to apply them strategically in various business scenarios. Join us and gain the skills needed to excel in managing profitability!

Example:

Sam bought a book for ₹100 and sold it for ₹150. What is his profit or loss?

Standard Formula:

Profit=Selling Price−Cost Price

Loss=Cost Price−Selling Price

Solution:

• The cost price (CP) of the book is ₹100.
• The selling price (SP) of the book is ₹150.

Using the standard formulas:

• Profit = SP – CP
• Loss = CP – SP

Let’s calculate:

Profit:

Profit=₹150−₹100

            =₹50

So, Sam made a profit of ₹50 by selling the book.