MASTERING PROFIT AND LOSS AND PARTNERSHIP QUESTIONS FOR BANKING EXAMS IN DETAIL

Why These Topics Matter?

Profit & Loss and Partnership questions are frequently asked in the Quantitative Aptitude section of banking exams. Together, they usually contribute 3–5 questions in prelims and mains. Mastery over these topics helps you score quickly with minimal effort once concepts and formulas are clear.

PART 1: PROFIT AND LOSS

Key Terminologies and Formulas

 Important Formulas

1. Profit = SP – CP
2. Loss = CP – SP
3. SP = CP × \left(1 + \frac{\text{Profit %}}{100} \right)
4. SP = CP × \left(1 – \frac{\text{Loss %}}{100} \right)
5. CP = SP × \left( \frac{100}{100 + \text{Profit %}} \right)
6. CP = SP × \left( \frac{100}{100 – \text{Loss %}} \right)
7. When two articles are sold at same SP but one at profit% and one at loss%
   1. Net loss % = \frac{\text{(Profit%)² – (Loss%)²}}{100}

Problem-Solving Strategy

1. Understand the question type – Is it basic profit/loss, discount-related, or successive transaction?
2. Always keep the base as Cost Price unless specified.
3. Use equations where required for combined transactions.
4. Practice unit-based questions (e.g., “gain of Rs. X per item”).
5. Apply successive discount formulas if multiple discounts are given:
   1. Net Discount = x+y−xy100x + y – \frac{xy}{100}x+y−100xy

Common Question Types

• Find SP/CP/Profit/Loss when two of the three are known.
• Discount-based problems.
• Successive transactions (e.g., seller sells at a gain and then buyer sells at loss).
• Profit sharing in combined items (weighted average).
• Marked Price and multiple discounts.

Sample Practice Question (Profit and Loss)

Q: A shopkeeper sells an article at 20% profit. If the CP was Rs. 500, find the SP.

Solution:
SP = CP × (1 + Profit%)
= 500 × (1 + 20/100) = 500 × 1.2 = Rs. 600

PART 2: PARTNERSHIP

 Key Concepts

In partnerships, two or more people invest capital in a business and share profits/losses according to their investment ratio and time of investment.

Basic Formula

• Profit Sharing Ratio = Capital×Time
• If partner A invests Rs. X for T months, and partner B invests Rs. Y for T month
  1. A:B = X×TX×TX×T : Y×TY×TY×T

Variations in Partnership Problems

1. Simple Partnership
   1. All partners invest at the same time.
2. Time-Based Partnership
   1. Partners invest at different times.
   2. Use weighted investment: Capital × Time.
3. Working and Sleeping Partners
   1. Working partner receives salary/commission in addition to profit share.
4. Incoming or Outgoing Partner
   1. Compute profit for specific duration using time split.

Common Question Types

• Profit sharing between 2 or 3 partners.
• Finding one partner’s investment when profit share is known.
• Time-based profit calculation.
• Addition of new partner and changes in sharing ratio.
• Ratio comparisons and total profit finding.

Sample Practice Question (Partnership)

Q: A invests Rs. 6000 for 12 months, and B invests Rs. 4000 for 9 months. Find the profit-sharing ratio.

Solution:
A:B = 6000×12 : 4000×9
= 72000 : 36000 = 2:1

Tips & Tricks

• Always convert time into months when calculating profit-sharing ratios.
• Cross-multiply for partnership problems quickly.
• Don’t forget to include salaries or commissions for working partners.
• Check whether time or capital is variable across partners.
• Practice shortcut-based questions to manage time better in exams.

Common Mistakes to Avoid

Practice Plan

Recommended Resources

Books:

• Quantitative Aptitude by Magme Medal
•  Arithmetic by Magme Medal
•  Practice PDFs (Magme Medal)

Online:

• PracticeMock, Testbook (Magme Medal)
• YouTube short video tutorials for tricks (Magme Medal)

Final Takeaways

• Practice shortcuts but master concepts first.
• Build calculation speed—mental math is a must.
• Focus on variety in questions (discounts, combined investments, salary scenarios).
• Attempt previous year papers regularly for exam-level familiarity.