Profit and Loss Practice Questions for CAT & IPMAT 2026 — Advanced Set 4 with Answers
- Jul 31, 2025
- 4 min read
Updated: Apr 13
Profit and Loss Question Sheet 4
Q.1 By selling 14 oranges for a rupee, a man loses 12%. How many for a rupee should he sell to gain 12%?
Q.2 A merchant sold goods worth Rs 2000 at a loss of 10%. At what price should he have sold them to gain 10%?
Q.3 A trader marks his goods 40% above cost price and allows a discount of 15%. What is his profit percent?
Q.4 A shopkeeper uses a weight of 800g instead of 1 kg. Find his actual profit percent.
Q.5 A sells an article to B at a profit of 20% and B sells to C at a loss of 10%. If C pays Rs 216, find cost price for A.
Frequently Asked Questions — Profit and Loss for CAT & IPMAT 2026
What is the basic formula for profit and loss?
Profit = Selling Price (SP) - Cost Price (CP). Loss = CP - SP. Profit% = (Profit/CP)×100. Loss% = (Loss/CP)×100. SP = CP×(1 + Profit%/100) and SP = CP×(1 - Loss%/100).
How many Profit and Loss questions appear in CAT each year?
Profit & Loss typically contributes 1–3 questions per year in CAT QA. However, it overlaps with percentage problems, successive discount/markup questions, and partnership calculations — so the effective impact is higher.
What are the most common types of P&L questions in CAT and IPMAT?
Common types include: successive discounts/markups, cost price when profit% and SP are given, dishonest dealings (false weights), partnership profit distribution, and compound interest-based P&L mixing.
How do I solve questions involving successive discounts?
For two successive discounts of x% and y%, the effective discount = x + y - xy/100. Example: 20% then 10% discount = 20 + 10 - 20×10/100 = 28% effective discount. This formula saves significant time in exams.
What is the concept of marked price and how is it different from cost price?
Marked Price (MP) is the price listed on the product (before discount). Cost Price (CP) is what the seller paid. Selling Price (SP) is after discount: SP = MP×(1-discount%/100). Profit or loss is calculated based on CP, not MP.
How are dishonest trader (false weight) problems solved?
Profit% = (True weight - False weight) / False weight × 100. For example, if a trader uses a 900g weight as 1kg, profit% = (1000-900)/900 × 100 = 11.11%. CAT tests this concept in both direct and applied forms.
Is Profit & Loss important for IPMAT IIM Indore preparation?
Yes, P&L is important for IPMAT. IIM Indore's IPMAT paper frequently tests arithmetic topics including P&L, percentage, and ratio. The questions are moderate in difficulty — focus on formula fluency and speed over complex derivations.
How should I practice P&L questions to improve my CAT score?
Start with the core formulas, practice 20 basic problems to build speed, then solve 20 moderate questions involving successive changes and dishonest traders. Finally, attempt 10 advanced questions and time yourself. Review your errors carefully.
Frequently Asked Questions — Profit and Loss for CAT & IPMAT 2026
What is the basic formula for profit and loss?
Profit = Selling Price (SP) - Cost Price (CP). Loss = CP - SP. Profit% = (Profit/CP)×100. Loss% = (Loss/CP)×100. SP = CP×(1 + Profit%/100) and SP = CP×(1 - Loss%/100).
How many Profit and Loss questions appear in CAT each year?
Profit & Loss typically contributes 1–3 questions per year in CAT QA. However, it overlaps with percentage problems, successive discount/markup questions, and partnership calculations — so the effective impact is higher.
What are the most common types of P&L questions in CAT and IPMAT?
Common types include: successive discounts/markups, cost price when profit% and SP are given, dishonest dealings (false weights), partnership profit distribution, and compound interest-based P&L mixing.
How do I solve questions involving successive discounts?
For two successive discounts of x% and y%, the effective discount = x + y - xy/100. Example: 20% then 10% discount = 20 + 10 - 20×10/100 = 28% effective discount. This formula saves significant time in exams.
What is the concept of marked price and how is it different from cost price?
Marked Price (MP) is the price listed on the product (before discount). Cost Price (CP) is what the seller paid. Selling Price (SP) is after discount: SP = MP×(1-discount%/100). Profit or loss is calculated based on CP, not MP.
How are dishonest trader (false weight) problems solved?
Profit% = (True weight - False weight) / False weight × 100. For example, if a trader uses a 900g weight as 1kg, profit% = (1000-900)/900 × 100 = 11.11%. CAT tests this concept in both direct and applied forms.
Is Profit & Loss important for IPMAT IIM Indore preparation?
Yes, P&L is important for IPMAT. IIM Indore's IPMAT paper frequently tests arithmetic topics including P&L, percentage, and ratio. The questions are moderate in difficulty — focus on formula fluency and speed over complex derivations.
How should I practice P&L questions to improve my CAT score?
Start with the core formulas, practice 20 basic problems to build speed, then solve 20 moderate questions involving successive changes and dishonest traders. Finally, attempt 10 advanced questions and time yourself. Review your errors carefully.
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