Profit and Loss - Level 3 (Advanced)
- IIMwalaBanda
- Aug 1
- 5 min read
Updated: Aug 5
Q1. A trader has 100 kg of rice, part of which he sells at a profit of 10% and the rest at a loss of 5%. If his overall profit on the whole 100 kg is 4%, find the ratio of the quantities sold at profit and at loss. (A)
(a) 2:3
(b) 3:2
(c) 1:2
(d) 4:1
Q2. A shopkeeper buys two grades of rice at ₹40/kg and ₹60/kg, mixes them, and sells the mixture at ₹57.50/kg, earning a profit of 15%. Find the ratio in which the two grades were mixed. (A)
(a) 1:1
(b) 2:1
(c) 1:2
(d) 3:2
Q3. A trader bought a batch of identical articles for a total of ₹9,600. He sold 3/5 of the articles at a profit of 20% and the remaining 2/5 at a loss of 10%. Find his overall profit. (A)
(a) ₹600
(b) ₹720
(c) ₹768
(d) ₹800
Q4. A shopkeeper sells two watches at ₹1,995 each — one at a gain of 25% and the other at a loss of 25%. Find his overall result on the two transactions combined. (A)
(a) Gain of 6.25% (₹250)
(b) Loss of 6.25% (₹266)
(c) Loss of 5% (₹210)
(d) Gain of 5% (₹200)
Q5. A shopkeeper claims to sell goods at cost price. He uses a false weight that gives only 960 grams for every 1000 grams he charges for, but he also genuinely gives customers a 4% discount on the price he'd charge for 1000 grams. Find his overall profit or loss percentage. (A)
(a) 4.17% profit
(b) 4% loss
(c) No profit, no loss
(d) 8% profit
Q6. A trader intends to buy 1000 g of a raw material for ₹1,000 but is cheated and receives only 900 g for the same money. He then sells the finished goods at a price per gram that he believes reflects a 10% loss (based on his intended 1000 g cost basis). Find his actual profit or loss percentage. (A)
(a) 10% loss
(b) 15% loss
(c) 19% loss
(d) 21% loss
Q7. Two friends buy a car together for ₹6,00,000, investing in the ratio 3:2. They later sell the car for a total of ₹7,25,000. Find the overall profit percentage on the transaction. (A)
(a) 18%
(b) 20%
(c) 20.83%
(d) 25%
Q8. A retailer buys an article and marks it up by 30%. During a sale, he offers a discount, but to maintain the same profit percentage as if he had sold at a 10% markup with no discount, what discount percentage must he offer on the 30%-marked-up price? (A)
(a) 10%
(b) 12%
(c) 15.38%
(d) 20%
Q9. The cost price of article A is 60% of the selling price of article B, and the cost price of article B is 60% of the selling price of article A. Both articles are sold at the same price. If A is sold at a profit of p% and B at a profit of q%, find p and q. (A)
(a) p = q = 50%
(b) p = q = 66.67%
(c) p = 2q
(d) p + q = 100%
Q10. A shopkeeper increases the marked price of an article by 25%. He then offers a discount on this new marked price such that the article is finally sold at the original marked price, thereby gaining 20% over cost price. Find the discount percentage he offered on the increased marked price. (A)
(a) 15%
(b) 18%
(c) 20%
(d) 25%
Q11. Three partners buy goods worth ₹1,20,000 for a joint venture, contributing in the ratio 2:3:5. They sell the entire stock for ₹1,50,000 and decide to split the total profit equally among themselves instead of by investment ratio. Find how much more or less the largest investor receives under the equal split compared to an investment-ratio split. (A)
(a) ₹5,000 more
(b) ₹5,000 less
(c) ₹3,000 less
(d) ₹2,000 more
Q12. Ramu mixes 2 litres of mineral water costing Rs. 15 per litre with 18 litres of milk that he bought for Rs. 900. After selling 2 litres of this mixture to Shamu, Ramu adds tap water so that the ratio of milk to tap water is 9:10. If tap water is free and Ramu claims to sell at cost price of milk, what is his profit%?
A) 96% profit
B) 100% profit
C) 104.5% profit
D) 110% profit
Q13. A fuel dealer purchases 120 litres of petrol at ₹35 per litre. To increase his margin, he blends it with kerosene that costs him ₹24 per litre. He then sells the mixture at ₹36 per litre, but adjusts the meter so that every “1 litre” shown is actually only 0.96 litre delivered. If his overall gain is 25%, determine how many litres of kerosene he must have added.
A) 80 litres
B) 90 litres
C) 100 litres
D) 120 litres
Q14. Three items — P, Q, and R — are sold at prices that stand in the ratio 29 : 27 : 32. The percentage gains on these items are in the ratio 4 : 2 : 5 respectively. The cost price of P is the same as that of Q, while the cost price of R is ₹480. Find the overall percentage gain made on all three items together.
A) 12%
B) 14.8%
C) 16%
D) 18%
Q15. Rani buys more apples than oranges. She sells each apple for ₹23, earning a 15% profit, and each orange for ₹10, earning a 25% profit. After selling all her apples and oranges, she collects a total of ₹653. What is her overall profit percentage?
A) 15%
B) 16%
C) 17.5%
D) 18%
Q16. A trader buys coffee of three different grades at ₹900, ₹600, and ₹400 per kg, respectively, in the ratio 3 : 2 : 5. She mixes all the coffee and sells one‑fifth of the mixture at ₹750 per kg. At what price per kg should she sell the remaining coffee to make an overall profit of 40%?
(a) ₹742
(b) ₹736
(c) ₹845
(d) ₹752
Q17. A person invests ₹10,000 in a scheme. At the end of the first year, he suffers a loss, but his balance remains above ₹6,000. This balance is reinvested for another year, where the percentage gain is five times the percentage loss of the first year. If his total wealth after two years amounts to a 35% overall gain on the initial investment, what was the percentage loss in the first year?
(a) 8%
(b) 9%
(c) 10%
(d) 12%
18. A shopkeeper purchases 35 kg of sugar and fixes a marked price to earn a 20% profit. He manages to sell 5 kg at this marked price and another 15 kg at a 10% discount. Unfortunately, 3 kg of sugar gets spoiled and cannot be sold. To achieve an overall profit of 15% on the entire transaction, he increases the marked price of the remaining sugar by p% before selling it. The value of p is closest to:
(a) 25
(b) 22
(c) 31
(d) 35
Scroll to the bottom for answer key and refer above video for solutions or visit @iimwalabanda YouTube page
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