A shop and a car were sold for ₹2,70,000 each. Due to increased scope of business, shop was sold at a profit of 20% but due to depreciation, car could be sold at a loss of 10%. How much profit or loss resulted in the entire transaction?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Profit ₹15,000
Profit and loss per cent are worked out on the cost price, so each cost price is found from its selling price first; the gain on one and the loss on the other are then set against each other.
The shop (sold at 20% profit, so SP = 120% of CP):
CP \(\displaystyle =270000\times\frac{100}{120}=2,25,000\)
Profit \(=2,70,000-2,25,000=45,000\)
The car (sold at 10% loss, so SP = 90% of CP):
CP \(\displaystyle =270000\times\frac{100}{90}=3,00,000\)
Loss \(=3,00,000-2,70,000=30,000\)
The whole deal:
Net result \(=45,000-30,000=\) profit of ₹15,000