Question
upstudy study bank question image url

Profit and loss profit is the difference between the selling price and the cost price of an orticle. f the selling price is less than the cost price, the difference is called a loss. A shopkeeper or retailer purchases his goods for a certain price. This amount s called the cost price or CP. The price that the shopkeeper sells the goods to a customer is called the selling price or SP. Profit (or loss) can be calculated as SP - CP.

Ask by Cummings Griffin. in South Africa
Mar 05,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Profit is the difference between the selling price and the cost price when the selling price is higher. Loss is the difference when the selling price is lower.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Mind Expander

Did you know that the concept of profit and loss has been around since ancient civilizations? Merchants from Mesopotamia to the Roman Empire were keeping track of their goods' cost and selling prices to ensure they remained profitable. They may not have had spreadsheets, but they certainly understood the basic principles of business that still apply today. In today’s world, understanding profit and loss is crucial for any budding entrepreneur. For instance, a small coffee shop needs to know the cost of beans, rent, and wages versus what they bring in through sales. By analyzing these numbers, they can make informed decisions—like whether to raise prices, cut costs, or even expand the menu—to boost profits and ensure sustainability over the long haul!

Related Questions

2 QUESTION 1 : CONCEPTS,JOURNALS AND POSTING (78 marks; 70 Minutos) 1.1. CONCEPTS REQUIRED: Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question number (1.1.1-1.1.5). 1.1.1 Trading stock, bank and debtors are examples of non-current assets. (1) 1.1.2 A bank overdraft is a facility that allows the business to use more money than they have in their current banking account. (1) 1.1.3 Non-current liabilities are payable within a period of one year. 1.1.4 A creditor is a person or business that is owed money for goods or services they supplied on credit. 1.1.5 Equipment such as a cash register and printers are used to generate income for the business. 1.2 CASH JOURNALS JADE CREATIONS The following information was taken from the books of Jade Creations for March 2021. Jade Creations uses a mark-up of \( 60 \% \) for all merchandise sold. REQUIRED: 1.2.1 Complete the following Journals in the financial records of Jade Creations for March 2021: - Cash Receipts Journal - Cash Payments Journal 1.2.2 Post to the Bank Account in the General Ledger. Balance the account at the end of March 2021. Note: The opening balance is recorded in the answer book. RANSACTIONS FOR MARCH 2021 Paid Thato Suppliers for trading stock, R12 800 and stationery, R350 (EFT 190). Cash sales for the week amounted to R6 520 (CRR 01). Received an EFT 05 from R Rose for the rent for March 2021, R5 300. Invested R20 000 in a fixed deposit at UK Bank at an interest of \( 9 \% \) per annum, (EFT 191). Transferred weekly wages to the account of Sheila, R2 500, and EFT 192. Grade 10 Controlled test-Question paper 07 April 2021

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy