Method II:

We know that 25% =

1
4

If B = 4 then A = 5
1
Required % =
= 20%.
5

Ex 1:

Sol:

Marks scored by A is 50 and marks scored

by B is 40. Then
(i) A is what % more than B?
(ii) B is what % less than A?
(iii) A is what % of B?
(iv) B is what % of A?
50 - 40
x100 = 25%
40
10
(ii)
x100 = 20%
50
50
(iii)
x100 = 125%
40
40
(iv)
x100 = 80%
50
(i)

Ex 2:

What % of 60 is 40?

Sol:

Keeping the above point in mind, answer can

be calculated as
40
x100 = 66.67%
60

Ex 3:
Sol:

What % of 40 is 60?
Similarly we get

60
x100 = 150%
40

Ex 6:

Income of A is more than B. A spends 30% of

income on food and B spends 25% of his
income on food. Who spends more on food?

Sol:

Income of A is more than B and he spends

higher % of income. (as 30% > 20%) on food.
Hence A spends more on food than B.

Ex 7:

In the above example if income of A is less

than B then who spends more on food?

Sol:

As a percentage, 30% > 25%. But here we

are taking. higher % (ie. 30%) of lower base
(i.e A) may be more or less than 25% of B.
Hence, answer is cannot be determined.

This successive increase model can be used only

when same quantity is multiplied with multiplication
factors.
Area = Length Breadth
If Length increases by 10% and breadth
increases by 20% then Area gets multiplied by
1.1 and 1.2 so it can be used.
Distance = Speed time
Expenditure = Price Consumption etc

4. Percentage Change:
% Increase =
% Decrease =

Actual Increase
Initial Value

100

Actual Decrease
Initial Value

100

Ex 4:

The ratio of As salary to Bs salary is 6 : 5.

(a) By what % does A earn more than B?
(b) By what % does B earn less than A?

For example, present population of city A is 45000

and last year it was 35000. Then we can find %
increase.

Sol:

Explain to the students, that even for the

problem of ratios the same concept explained
above can be applied and it is also not
necessary even to take the common term for
the ratio i.e. let salary of A & B be 6, 5.
6-5
(a)
x100 = 20%
5
6-5
(b)
x100 = 16.67%
6

Actual Increase = 45000 35000

= 10000
Initial population = 35000
10000
2
% Increase =
100 = 100 = 28.56%.
35000
7

Ex 5:

A is taller than B by 25%, by what percentage

B is shorter than A?

Sol:

Method I: As it is "than B"

Let B = 100 then A = 125
25
1
Required % =
=
= 20%.
125
5

60 + (20% of 60) = 60 + 12 = 72
We can do the same question in another way by
using concept of Multiplication factor.
Let Ajay's initial marks = 100% then his final exam
marks
= 100% + 20%
= 120%
120
=
= 1.2
100
The number "1.2" is the multiplication factor.
Hence final exam marks can be obtained by simply
multiplying 60 by 1.2
i.e 60 1.2 = 72 marks.

P
Multiplication factor for p% increase = 1 +
100
P

Multiplication factor for p% decrease = 1 .

100

Let's quickly see M.F for some P% changes.

% Change

M. F

30% Increase

1.3

70% Increase

1.7

8% Increase

1.08 (not 1.8)

10% Decrease

0.9

40% Decrease

0.6

7% Decrease

0.93

As we discussed earlier if his semester marks are

100% then his final exam marks will be 120%. But we
know his semester exam marks as 60. Hence doing
cross multiplication
100

60

120

120
60 = 72
100

Ex 8:

Sol:

(a) Production of wheat in 1996 was

60,000 tons and in 1997, it was 75,000 tons.
By what percentage did the production
increase?
75,000 % change = 60,000
60,000

Using multiplication factor,

(prod. in 1998) 1.25 = prod. in 1999
(prod. in 1998) 1.25 = 400
400
prod. in 1998 =
= 320
1.25
OR
If production in 1998 = 100%.
then production in 1999 = 125%.
out of given 125%. We want 100%. Hence,
100
prod. in 1998
400 = 320
125
Please note that last two methods are based on the
same concept, only way of representation is different
student can follow any method base on his comfort.
But its better to practice last method.
(c) The quantity of jowar produced in the year 1997
was 21,000 tons. During the next year the
1
production increased by 33
%. What was the
33
production in 1998?

= 25%

(b) In the year 1999, the production of

pulses increases by 25% over that of the
preceding year and reached 400
thousand tons. What was the quantity of
pulses produced in 1998?

Explain to the students that reciprocal value

1
of 33
% is 1/3 and hence the problem can
33
be solved as
1
= 21,000 + [21,000]
3
= 21000 + 7,000 = 28,000 tons

(d) The production of tobacco in the year 2000 was

160 lakhs tons and this was 20% less than the
production of the year 1999. How much tobacco
was produced in 1999?
Sol:

Given Data

Explain to the students that this problem can

either be solved using formula or by
summation as follows
400 - I
25 =
x100
I
25 I = 40000 100 I 125 I = 40000
40000
I=
125
I = 320 thousand tons
OR

Sol:

60 120
?=
= 72
100
The above process we can do in one step as out of
given 100% we want 120%. which can be obtained as
Required Data

Sol:

Let x be the production in

x 20% of x = 160
x 0.2x = 160
0. 8x = 160
x = 200 lakh tons.
OR
Using multiplication factor
160
x=
= 200
0.8
OR
Out of 80% given we want 100%.
100
x=
160 = 200
80

Note:

Make a note to the students that in

course of time if it happens that %
change is negative then it indicates that it
is a case of decrease.

Ex 11: If the population of India is 4.5 times that of

U. S. A, what % of Indias population is
population of U. S. A?
Sol:

Explain to the students the concept of a number

becoming n times is equivalent to increase of
(n 1) x 100 % increase with examples as below.
For example if a value x is doubled over a period
of time then % change is
2x - x
x100 = 100%
x
Parallely if x is tripled then
3x - x
% increase =
x100 = 200%
x
If x is made 4 times then
4x - x
% Increase =
x100 = 300%
x
if x is made n times then
nx - x
% increase =
x100 = (n -1)100%
x
% increase =

Assume population of U. S. A = x
population of India = 4.5 x
population of U. S. A as a % of
population
of India
x is
1
2
9
=
x100 = 100 = 100 = 22.22%
4.5x
9
2
Ex 12: If salary of A is 20% greater than that of
B then by what % is Bs salary less than that
of A?
Sol:

As

Explain to the students that since the

salary of A is 20% more than B let us
assume, Bs salary = 100 thus making As
salary = 120.
% by12which
0 - 20 Bs salary is less than
salary =

Using this concept explain a few problems as

below
Ex 9:

If the production of sugar tripled from

1989 to 1990 then find % increase in
production of sugar from 1989 to 1990

Sol:

Explain to the students, that if we remember

the concept above straight away we can say
% increase is 200% or solving it in
conventional method we get. If x is
production in 1989.
3x - x
% increase =
x100
x

2x
=
100 = 200%
x
Ex 10: If the population of Delhi is 220% more than
that of Hyderabad then the population of
Delhi is how many times of Hyderabad.?
Sol:

Explain to the students, that this problem is a

reverse way of the concept explained before
and since the % increase is 220% the
number of times the value is would be
220
+ i.e 3.2
100
Or solving by conventional method if
population of Hyderabad is x then
population of Delhi is
X + 220% of x = 320% of x
Required ratio of population of Delhi to
Hyderabad
1
320
x
100
=
= 3.2times
x

120

x100 = 16.67%

Note:

Explain to the students that these problems

can also be solved by a formula as given
below.
100x
% less/more than A.
(100
x)
Also say to them that same formulae can be used in
concepts like finding out % reduction/increase in a
value which has already increased/reduced by x %
and the reduction/increment in the consumption of an
item when its price is increased/reduced by x % to
make expenditure constant.
Ex 13: If As salary is 10% less than Bs salary then
by what % is Bs salary greater than that
of A?
Sol:
Explain to the students that this problem
can be solved using the convention referred
ie., by assuming some values as in before
problem and also by application of formulas
as below:
Since here the initial product is 10% less than
100x
next one then it is
% more than
100 - x

initial one
100 10
1000
i.e., =
%
= 90 = 11.11%
100 - 10

Ex 14: If the price of an item is increased by 25%, by

what % should it be brought down to bring
back to the original level?
Sol:

Explain to the students that since the price

of an item is increased by 25% let us assume
that before increase it was 100. An increase
of 25% makes it 125. Now this 125 has to be

brought back to 100 i.e., the % by which it

125 should be reduced is = 100
100
125
explain to the students that this problem can
be solved using the formula also.
Ex 15: If the price of an item is decreased by 25%
by what % should it be raised to bring it back
to original level?
Sol:

Explain to the students that this can also

be solved using the formula as below:
100x25
Required % increase =
%
100 - 25

2500 100
=
= 33.33%
75
3

Ex 16: If the price of tea is decreased by 20% then

by what % should the consumption be
increased in order to maintain constant
expenditure?
Sol:

Method I First of all explain to the

students that expenditure is equal to price of
tea x consumption of tea. Hence if expenditure,
price, consumption are represented as e, p, c
respectively. We can say
e = p x c = cost
p1, c1, = p2 c2
price of tea decreased by 20%
p2 = p1 20% p1 = 0.8 p1
p1 x c1 = 0.8 p1 x c2
c2 =

c1
0.8

= 1.25c 1

% increase =

1.25c1 - c1
x 100 = 25%
c1

Method II
Explain to the students that this can be solved
by using the formula also as
100x20
2000
Req % inc =
% =
= 25%
(100 - 20)
80

Sol:

5. Percentage point change:

Consider population of city X.
Males

Females

Total Population

1998

40

60

100

1999

50

100

150

% increase in no.of males =

10
100 = 20%
50

40
= 40% of total population.
100
50
and 1999 Males are
= 33.33% of total
150
population.
From the above data we can say that number of
males are increase by 20% but number of males are
a percentage of total population is decreased by
approx 6.67 (i.e.40 33.33) percentage points.
In 1998 Males are

Ex 18: The production of wheat formed 20% of the

total food grain production in 1996. In the
next year, the share of wheat in the total food
grain production went up by 5 percentage
points. Find the % change in production of
what from1996 to 1997 if the total food grain
production increased is by 20% from
1996 to 1997

Total
Food
grain
production
Wheat
Production

As price becomes 80% i.e

Ex 17: The production of tea increases by 150%

from 1979 to 1980 by what % should the
production of tea increase from 1980 1981
so that the production of tea in 1981 recovers
becomes five times that of 1979.

Year

From 1998 to 1999

Method III
4
times,
5
5
consumption will become
times to maintain
4
the expenditure
5
1
1
Now
=1+
and
= 25%
4
4
4
Hence consumption must be increased by 25%.

Explain to the students that if we assume

production of tea is x in 1979 then its
production in 1980 would be x + 150% of
x = 2.5 x. Now the production in 1981 has to
be 5x. Hence the % change such that
2. 5 x becomes 5x is nothing by doubling the
value i.e., 100%.

% increase in

1996

1997

100

120

20

30

30 - 20
x100 = 50%
20

Ex 19: Andy scored 75 out of 150 marks in his mid

term exam and 105 out of 150 in end term
exam.
(a) Find the % increase/decrease in his
marks.
Sol:

105 - 75
30
x100 =
x100 = 40%
75
75

(b) Find the increase in his marks in terms of

% points.

Sol: % marks in mid term exam

75
=
x100 = 50%
150
% marks in end term exam
105
=
x100 = 70%
150
Change in % points is 70 50 = 20%

Sol:

Method I: A = l b
New Area = 1.2l 1.1b
= 1.32 (lb)
Hence 32% increase in area.
Method II
Using successive percentage formula.
20 10
20 + 10 +
= 32%
100

6. Successive increase/decrease in percentages.

Many times we will come across a situation where
successive percentage changes are made and we
are asked to find overall percentage change.
For example, price of an article is increased by
20% and again it is increased by 30%. The overall
% change can be calculated as
Let initial price = 100
20%

100
120
+ 20

30%

156

+ 36

Hence overall % increase is 56%.

We can solve this question by using multiplication
factor also
Let initial price = P
Final price = P 1.2 1.3
= P 1.56
Hence overall 56% increase. As values 20% and 30%
are simple, we can use either of the methods. But if
values are 7% and 9% then it will involve a more
calculation. To avoid that we can use formula for
successive percentage change. If successive
changes of a% and b% are made, then overall
% change will be

ab
a + b +
%.
100

In this formula a and b will be positive for percentage

increase and negative for percentage decrease.
Same logic can be applied for the final answer. In the
example discussed above, using formula we can find
answer as
20
20 + 30 + 30
100

= 56%

As final answer is positive, it is 56% increase.

In the above example if it is 20% increase I and then
30% decrease then
20 (= 16
30 )100
As final answer is negative, it will be 16% decrease.
The above formula is applicable only for 2 successive
changes. For 3 successive change, first apply formula
for any 2 changes and then apply for resultant and
the third change.
20 30 +

Ex 20: The length of rectangle is increased by 20%

and its breadth is increased by 10%.
What is the percentage increase in its area?

However it cannot be used to find increase in

perimeter as in that case does not get multiplied as
the case becomes
Now perimeter = 1.1 L + 1.2 B
Thus answer will become cannot be determined if we
do not know exact values of L and B.
Ex 21: If A's income is 16% more than B's income
and B's income is 25% more than C's
income, by what percentage is A's income
more than C's income?
Sol:

Method I
25%

C B
100

16%

+20

125

145

Hence 45% more

Method II
Using successive percentage formula.
25 16
25 + 16 +
= 45%.
100

7. PROFIT AND LOSS:

I appeared for Last CAT exam. Before going for
exam I purchased 3 pencils. each at Rs.5. In my
exam hall there were 2 students who were not
carring pencils and they were knowing the fact I
was carring extra pencils. One of them offered
me Rs 7 and other offered Rs 4 for one pencil. I
accepted their offer and sold one pencil to each
at the above mentioned prices. Now if you look at
there are three prices available Rs 5, Rs 7 and
Rs 4. If we compare Rs 5 and Rs 7 we realise
that my selling price (S.P) is more than my cost
price (C.P). Hence this transaction gave me a
profit of Rs.2 (i.e. 75). If we compare Rs 5 and
Rs 4, we realise that my S.P is less than C.P.
Hence this transaction resulted in a loss Rs.1
(i.e.5-4).So we can define profit and Loss as.
Profit:
One has a profit when selling price (S.P) is more
than cost price (C.P). Hence
Profit = S.P C.P
Loss:
One has a loss when selling price is less than
cost price .Hence

Loss = C.P S.P

But just saying profit is Rs 2 will not give any idea
about how good that transaction is therefore
many times we express the profit in percentage
term. Now if you look at the value Rs 5 is
common and is not going to change. Hence while
calculating %profit or %Loss we will take C.P as
a base.

Ex.1:

(a) The C.P & S. P of an article are Rs.400 &

Rs.600 respectively. What is profit %?

Sol:

Profit is difference between S. P & C. P and

is given by 600 400 = 200. And since
everyone knows that
P
200
P% =
x100 =
x100 = 50%
C.P
400
Note: Explain to the students that unless
specified in any problem always P% and L%
should be calculated on C. P

profit
%Profit =
100
C.P.
In the above example % Profit =

Similarly % Loss =

2
100=40%
5

Loss
100
C.P.

In the above example

1
%Loss = 100=20%
5
Please note that while calculating % profit and %loss
C.P is taken as a base 100%.

(b) If the price above given are interchanged

what is % of loss.
Sol:

Explain to the students that once if we understand

the relation between these parameters we need not
remember any formulae even to solve any problem.
Now explain some examples based on these
concepts.

200
600

600 - 400
x100
600

x100 = 33.33%

Ex.2:

An article brought at Rs. 700 was sold at a

profit of 20% what is the S.P?

Sol:

Explain to the students that we know that

S.P = C. P + P
P%xC.P
and P = 20x700 =
= 140
100
100
S.P = 700 + 140 =840
Also say to them that the same problem can
also be done with the help of
100 + P
S. P = C. P

100

If someone gets 10% profit means profit = 10% of

C.P. In different words we can say if C.P = 100 the
S.P =110.
Similarly if someone suffers a loss of 30% means,
Loss = 30% of C.P
In different words we can say if C.P = 100 then S.P =70
These have to be said orally and only the final
formulae are to be written on the board.
Now explain to the students that generally we have
to calculate % Profit or %loss S. P or C. P accordingly
to the problem and these type of problems can either
be solved using the normal relations or direct
formulae as explained below:
If C.P is know and there is a P% Profit then S.P is
C.P P
S. P = C.P +
100
If the above one is written as formula it is
100 + P
S. P = C.P

100
Parallelly if C.P & L % are given then

100
S. P = C.P

100

- L
If S.P & P% are given then

C.P = S. P

100 + P
100
if S. P & L% are given then

C.P = S.P

100 - L

L%=

100 + P
Note that
is nothing but a
100
multiplication factor. For 20% increase M.F is
1.2. Hence S.P = 700 1.2= 840
Ex.3:

An article is sold for Rs. 400 at profit of 25%.

What is C. P?

Sol:

Method :
Explain to the students that we know C. P of
the article is given by
S.P = C. P + P
P = 25% of C.P = 0.25 C. P
S. P = C. P + 0.25 C. P
S.P
C.P = 400 =
= Rs.320
1.25 1.25
Say to them that this problem also can be
solved with the help of formula
100
C. P = S. P

100 + 8
Method :
As we discussed 25% Profit means if C.P
=100 then S.P =125 .S.P is given, hence
100
C.P. =
400 = 320
125

Ex.4:

A, sells an article to B at 25% profit B sells

same to C at 20% profit.
(a) By what % is the C.P of C more than
A?

Sol:

Explain to the students that in such problem it

is better to take the initial value of the article
as a base value like 100 rather than x.
Hence if we assure the C.P of the article to
A is 100 then C.P of A =100, S. P of A = 125
C. P of B = S. P of A = 125, S.P. of B = C. P
of C = 125 + 20% of 125 = 150.
% by which C.P. of C more than A is
150 = 100
x100 = 50%
100

Ex.6:

Two articles sold at same price. On one

article there is a loss of 10% and on the other
profit of 10% what is P% or L% in the whole.

Sol:

Using formula,
The percentage loss is given by
% Loss =

Ex.7:

Two articles which were brought at same

price were sold making 20% profit on one
and 10% loss on other. What %P or % L on
the whole?

Sol:

Explain to the students that if we assume

C. P of each one is Rs. 100 then Total C.P =
100+100 =200
Total S.P = 120 +90 =210
10
P%=
x100 = 5%
200

Ex.8:

The S. P of 12 oranges is equal to C. P of 15

oranges. Find P/L %

Sol:

Given:
12 SP = 15 CP
SP 15 5
=
=
CP 12 4
SP = 5k
CP = 4k
k
P% =
100 = 25%.
4k

Ex.9:

The profit made on selling 20m of cloth is

equal to S. P of 5 m of cloth. Find P%.

Sol:

20 SP20 CP = 5SP
15 SP= 20CP

(b) If the C. P of A is 600. How much did it cost

to C.
Sol:

Explain to the students that the C. Ps of A &

C are varying directly. We can say.
100 600
=
x = Rs.900
150
x
C.P of C = Rs. 900.

(c) If C brought it
price did A buy it.

for

Rs.

1200

at

what

If x is C.P of A, then C. P of B & C are 1.25x

and 1.5x respectively.
Hence C.P of C = 1200
1. 5x = 1200
1200
C.P of A = x =
= Rs.800
1.5
Note: Now explain to the students the concept of
two articles with same S. P & C. P when one sold
at P% profit and another at P% loss is then what
is the % profit or loss on the whole.

SP 21 4
=
=
CP 15 3
SP = 4k
CP = 3k
P=k
k
Profit =
100 = 33 1/3%
3k

Explain to them that if we have two articles

with same C. P one sold at P% profit and other at
P% loss then we neither have a gain nor loss on
the whole.
Whereas if the S.P of the two articles is same
and one is sold at P% profit and other at P% loss
then we will have a overall loss and the loss %
=
Ex.5:

P2
100

The C.P. of two articles is same. If one item

is sold at 10% p and other at 10% L, what is
% P or %L on the whole?
Explain to the students that one can solve
this problem even by conventional method as
below: If we assure C.P. of the articles are
100 each then the S. P of them are 110 & 90
respectively. Hence total C. P and S.P. is 200
and 200 respectively. Hence we neither have
a profit nor a loss.

P2
10 2
.=
=1.
100
100

Ex.10: A merchant dishonestly weighs 100gm short

for 1 Kg that he sells. Find his gain % if his S.
P & C. P are same.
Sol:

Let cost Price per gm be Rs 1

Bills
1000gms
w/
Price/gm
1
Price/gm
S.P
1000
C.P
P% =

1000 - 900
100
900
= 11.11%

Gives
900
1
900

Ex.11: Merchant sold a cycle at a loss of 20%.

Instead he sold it for Rs. 450 more he would
have made a 10% profit. What is his C. P?
Sol:

Method :
Explain to this students that if we assume the
C.P. is x then difference in S. P when sold at
10% P and 20% L i.e., 1.1 x & 0.8x is Rs. 450
respectively.
1.1x 0.8x = Rs. 450
x = Rs. 1500

M.P = S.P.
But if discount is given then M.P is considered as
base value (i.e. 100%).
So if some one offers a discount of 15 % then it is 15
% of M.P.
In other words we can say if M.P =100 then S.P = 85
In the case of profit we can have the following chart.
M.P
Discount
S.P

Method :
Profit
Explain to men that this problem can also be
solved in a different way. Since in the two
cases of P & L the C.P is same the profit of
10% can be accumulated as 10-(-20) = 30%
C.P. Hence. If 30% of C.P is 450 then clearly
we can say C.P is Rs. 1500

C.P
Ex.13: Two successive discounts of 20% each is
equivalent to a single discount of what %?
Sol:

According to given data

Profit =30% of S.P
Let S.P = 100
Profit =30
C.P = 70
30
%Profit =
100 = 42.28%
70
Ex.12: Arvind sells a pen at a certain S.P had he
2
sold the pen at
of actual S.P he would
3
have made a loss of 10%. What was the
Arvind actually made.
Sol:

Let C.P = 100

New S.P =90 (as 10% Loss)
2
But New S.P =
Actual S.P
3
2
90 = Actual S.P
3
3
Actual S.P = 90 =135
2
Hence 35% Profit.

MARKED PRICE OR LIST PRICE

On Last Sunday I went in a shop to purchase a shirt. I
short listed one shirt and saw a price tag on that
which was Rs.1000. Now this price is nothing but a
marked price (M.P.). Before making a payment
shopkeeper told me that a festival discount is going
on and he offered me a discount of 15% .Now can we
find the discount amount?
Discount will be 15% of 1000 i.e. Rs.150. This
indicates that discount percentage is always applied
on M.P.
Discount
%discount =
100
Marked Pr ice
If no discount is given then

Method :
Explain to them that if we assume the actual
M.P is 100 then by successive discounts of
20% each the S. P would be 80 & further 64.
Hence
the
equivalent
discount
is
100 = 64
x100 = 36%
100

Ex.14: A trader marks his S.P. at 30% above the

C.P. & later offers a discount. Find the
discount % if trader make a net profit of 17%.
Sol:

If we assume the C.P. be Rs.100 then the

marked price will be Rs.130.
The net profit is 17% i.e. the S. P will be
Rs.100 + 17% of 100 = Rs. 117. Now as we
know the S. P and M.P the discount % can
be calculated as
M.P % discount = S.P
x100
M.P
130 -117
13
=
x100 =
x100 = 10%
130
130

Ex.15: By selling at a disc of 30% as trader makes a

profit of 26% by what % does he mark up the
C.P.
Sol:

Method :
As 30 % Discount is given,
S.P = 70% of M.P
Similarly, profit is 26%
S.P = 126% of C.P.
70% of Mp = 126% of C.P
M.P 126
=
C .P
70
If C.P = 70 then M.P = 126
56
Marked up % =
100 = 80%.
70

Now after the completion of the above

examples still if we find time then the
following example can be covered.
Ex.16: A brought a Cow for 40 gold coins and sold it
to B for 30% P. If B sold it to C for a loss
of 25% find his S. P (in terms of gold coins)
Sol:

Since the C. P of A 40 gold coins is S. P is

sum of C. P & 30% profit.
S.P = 40 + 30% of 40 = 52
The S. P of A and C. P of B is 52 gold
coins. Now B is selling the Cow to C to a
loss of 25%. Hence his selling price is S.P =
52 25% of 52
= 52 13 = 39 gold coins.

Ex.17: Andy sells a scooter to Bandy for a profit of

20% & Bandy sells it to candy for a profit of
6000 making 20% P. Find Andys C.P.
Sol:

1
5
We have to increase value by 20 %
Let C.P of A = 25
20% =

A
25

1
25
5

B
30

1
30
5

C
36

Profit of C is 6 parts Rs 6000

8 PARTNERSHIP:
Explain to the students the concept of
partnership as it is the case that occurs when two
or more persons involve in a business by
investing some amount respectively. At the end
of the year the profits are shared according to the
ratio of their investments. i.e.
If the time period for which all the persons
invested is same then the profit is divided in the
ratio of investments.
If the time period is not same then the profit is
divided in the ratio of their product of time &
Investment.
If one of the Investors involves in day-to-day
activities of the business men he is called
working partners, if not sleeping partners.
Now explain the difference types of problems
which examples as below:
Ex.1:

(a) Find the ratio of shares.

Sol:

C.P of a is 25 parts Rs 25000.

Ex.18: Mohan purchased a certain amount of rice. If
he sold one third of rice at Profit of 20% then,
find the profit % he needs to make on the
remaining rice to make an overall profit of 25%
Sol:

Now CP1 =100 CP2 = 200

SP1 = 120
%profit =

Sol:

Sol:

Since we know that total profit & the ratio of

share we can calculate
8
share of A =
x 4500 = Rs.2400
15
7
share of B =
x 4500 = Rs.2100
15

Ex.2:

A started a business with an investment of

Rs. 20,000. After 2 months B joins him with
an investment of Rs. 40,000. If they make a
profit of Rs. 9,600 at end of the year. Find the
share of B.

Sol:

Since the time of investment is not same their

ratio of shares will be equal to ratio of their
product of time, interest.
i.e. ratio of shares of A & B is
A : B = 20000 x 12 : 40000x10 = 3:5
The total profit is 9600 hence share of
5
B = x9600 = 86000
8

Ex.3:

A starts a business with Rs. 30,000 after two

months B joined him with Rs. 20,000. A
leaves after 6 months while B stays on till
end of year.

SP2 = 375 120 = 255

255 - 200
100 =27.5%
200

Ex.19: If discount on an article is increased from

20% to 35% the money realized from the sale
decrease by Rs. 27. What is the total price of
the article.
Explain to the students that we know,
discount is calculated as % of M. P and
difference between 20% disc & 35% disc. i.e.
35% M.P 20% M.P= Rs. 27
15% M. P = 27
27
M. P =
x100 = Rs.180
15

Since the time period of investment is same

for both the shares will be in the ratio of their
investment i.e., 8000 : 7000 8:7

(b) Find their respective shares

Method :
Let Total C.P = 300
As overall Profit is 25%
Total S.P = 300 +75=375

A & B invests Rs. 8,000 & Rs. 7,000

respectively in a business. After one year
they make a profit of Rs. 4,500.

(a)

Find the ratio of their shares

Sol:

Since the time of investment is not same ratio

of shares is = 30,000 x 6 : 20,000 x 10
= 1,80,000 : 2,00,000 = 9 : 10

= 120 : 120
=1:1
Now hence the profit will be divided equally
but if we assume total profit to be x of it 10%
i.e. 0.1 x is paid to Abdul as salary hence the
remaining profit i.e. 0.9x is divided equally
among them i.e. 0.45x.
Amount received by Abdul
= 0.45x + 0.1x = 4400

(b) By what % does B get more/less than A?

Sol:

Ex.4:

Sol:

with the ratio of shares we can calculate the

1
above as = x100 = 11.11% more than A.
9
Aman & Bhavan started a business with
respective investments of Rs. 10,000 & Rs.
15,000. The managing partner Aman
receives a salary of Rs. 2,000 for an amount
out of total profit of Rs. 9,500 at year end.
Find total amount received by Aman.
Out of profit the salary of Aman is Rs. 2000 &
the left out Rs.7,500 is shared between them.
The ratio of shares is the ratio of investments
as
the
time
period
is
same
i.e, = 10,000
:
15,000
=2
:
3
share of Aman =

2
x7500 = Rs.3000
5

0.55x = 4400
x=

55
Amount received by Basker
= 0.45x = 0.45 x 8000 = 3600
Ex.7:

A & B run a business in a certain year the

salary of A turns out to be equal to 90% of
the balance of profit left after his salary was
paid. If A finally received a total of Rs. 35,000
after splitting the remaining profit equally,
then find the total profit made that year.

Sol:

Let us assume the total profit to be x and the

salary paid to A is y therefore
y = 20%of (x-y)
y = 0.20x 0.2y
0.2x = 1.2y
x = 6y
x
y=
6
after the salary is paid profit remaining is x
x 5x
=
6
6
this is divided equally among A & B i.e., each
5x
x
getting a share of
+
= 35,000
12
6
7x

= 35,000 x = 60,000
12

Total amount received by Aman

= Rs. 3000 + Rs. 2,000 = Rs. 5,000
Ex.5:

Anitha starts a Business with Rs. 20,000.

After 3 months Vanitha joins her with Rs.
30,000. After some more time Cynthia joins
them with Rs. 40,000. If at the end of the
year Vanitha gets Rs. 18,000 out of a total
profit of Rs. 42,000 then how many months
after Vinitha did Cynthia join the business.

Sol:

Ratio of shares of these persons is

(Let Cynthia join after x months)
20,000x12 : 30,000 x 9 : 40,000x(12-x)
24 : 27: 4(12x)
Now of the total profit share of Vanitha is Rs.
18,000
18000
27
=
47000 24 + 27 + 4(12 - x)
63 =- 51 + 48 4x
4x = 99 63 = 36 x = 9
Cynthia joined after 6 months Vanitha
joined.
After the explanation for the above problem is
over and there is some more time available
then the following problems are to be
discussed.

Ex.6:

Sol:

Abdul started on business with Rs. 10,000&

4 months later Basker joined from with Rs.
15,000. At the end of the year, out of total
profit, Abdul recovers as total amount of Rs.
4,400 which includes a salary of 10% of the
profit what was the amount Basker received.
The ratio of their shares is
10000 x 12 : 15000 x 8

4400x100

9 STOCKS & SHARES

Please refer to the SM Booklet for theory.

Ex.1:

How many shares at 10% premium can be

purchased for an amount of Rs. 1,21,000 if
the face value of share is Rs. 100.

Sol:

Market value of the share

= Face value + Premium
= Rs. 100 + 10% of 100 = Rs.110
No. of shares that can be brought
1,21,00
= 1100 shares.
0
110
What is the dividend income from a 4% stock
worth Rs.4,00,000.

Ex.2:
Sol:

The rate of return from a stock of 4% worth

4
Rs.4,00,000 =
x4,00,000 = Rs.16,000
100

Ex.3:

Which is the better investment, 6% stock at

108 or 7% stock at 109.

Sol:

Explain to them to compare investments we

have to compare rate of returns.
i.e.,

6
7
x100 &
x100
108
109

i.e.,

100 100
&
18
15.5

Hence the rate of return on 7% stock at 109

is better and hence it is the better investment.
Ex.4:

Which is better investment, 11% stock at 100

or 12% stock at 109

Sol:

As in above problem
11
12
x100 &
100 x100 109
100
100
&
9.09 9.08
Hence 12% stock at 109 is better.

Ex.5:

Mohan has 10,000 worth of 6% stock which

he sells at 120 and invests the proceeds in
7% stock at 150. His annual dividend income
now is 16.67% more than earlier income. In
this transaction was be left with a balance
from the sale money did he invest additional
incomes? And how much was the amount.

Sol:

Assuming the face value to be Rs. 100 the

10,000 worth stock is equal to 100 the 10,000
worth stock is equal to 100 units. They were
sold at 120 thereby getting 120 x 100 = Rs.
12,000. Since the stock was 6% worth annual
income on it is 6 x 100 = 600 Rs.
Next year there was increase of 16.67
thereby making it Rs. 700.
To get an annual income of Rs. 700 he must
700
have brought
units =100 units since
7
each unit costs 150 total investment is 100 x
150 = 15,000.
The amount be incurred was Rs.1,20,000
and spent Rs. 15,000. Hence he had
invested an additional amount of Rs.3,000.
Announce to the students that with this the
topic of PPL is completed.