RD Sharma Class 7 Solutions Chapter 12 Profit and Loss
The Money paid by the shopkeeper to by the goods from a manufacturer or a wholesaler is called the cost price of the shopkeeper. The cost price is abbreviated as C.P.
The price at which a shopkeeper sells the goods is called the selling price of the shopkeeper. The selling Price is abbreviated as S.P.
Effective cost = Cost Price + Overhead Charges
If S.P. > C.P. , then there is a gain given by Gain = S.P. – C.P.
If C.P. > S.P. , then there is a loss given by Loss = C.P. – S.P.
Gain or Loss is calculated on the cost price.