Profit and Loss for Bank Exams
By : Akash Mishra
Updated : Oct 7, 2020, 12:05
The Profit & Loss is a business financial statement which explains expenses, costs and revenues incurred in a financial quarter or a financial year. The statement explains to us about financial stability, financial ability and the inability of a concerned governing body, institution, company or any organisation. Profit & Loss topics for bank exams as well as their calculation helps the management or the owner of the business to understand the financial condition of the business and take decisions accordingly.
We have found the best Profit & Loss formula for bank exams as well as Profit & Loss problems for bank exams for the students who aspire to get success in the fields of SBI Clerk, SBI PO, IBPS Clerk, IBPS PO, IBPS RRB Clerk, NABARD Grade A & B, RBI Grade A & B. We will provide important Profit & Loss notes for bank exams to ensure we are the best from roots.
Important Profit & Loss Topics for Bank Exams
The table below highlights the Profit & Loss syllabus for bank exams:
Profit Percentage Formula
100 x Profit/Cost Price
Loss Percentage Formula
100 x Loss/Cost Price
Selling Price - Cost Price(when SP>CP)
Cost Price - Selling Price(when CP>SP)
Marked Price - Selling Price
Marked Price - Discount
Profit & Loss Tricks for Bank Exams
Now, we will learn some tips/tricks to solve any Banking Question related to Profit & Loss.
- Cost Price = ⦃ 100/(100+Profit %)⦄ x Selling Price
- Cost Price = ⦃ 100/(100-Loss %)⦄ x Selling Price
- Selling Price = ⦃(100+Profit%)/100⦄ x Cost Price
- Selling Price = ⦃(100-Loss%)/100⦄ x Cost Price
Importance of Profit & Loss Section of Competitive Banking & Government Exams
Profit & Loss questions are very important in Banking examinations because Banking is all about money.
- Profit & Loss is essential for all sectors of bank exams as it determines the potential of any student to analyse the problems and know how to solve them at ease at the quickest of the moment.
- Profit & Loss calculation works like a defence in terms of any unknown present, past or future progression of any work. It works in all fields of business transactions.
- Trading accounts is important here. It helps us to know the gross profit or loss, gross profit and sales, amount of expenses, purchases relating to any manufacturing units.
- Another most important topic is the Balance Sheet. This is the core as it clarifies all the doubts of all financial positions concerning any governing body.
Most Recommended Best Books for Profit & Loss
After thorough research, we recommend a few books for the Profit & Loss online test for bank exams.
Profit & Loss
By Ludwig von Mises
How to read a Profit & Loss Statement
A book by Ramachandran & Ram Kumar Kakani
Profit & Loss
New Pattern Data Analysis & Interpretation
An initiative by Disha Publications
Bank PO Quantitative Aptitude
By Arihant Experts
Why Prepare Profit & Loss from BYJU'S Exam Prep?
- BYJU'S Exam Prep gives the best opportunity to understand the basic concepts and utilise them with the best skills.
- BYJU'S Exam Prep has a stock of best Banking questions and answers.
- It provides the most classified notes for Bank exams.
- BYJU'S Exam Prep has best-in-class opportunities for conducting online test examinations for Banking as well as Profit & Loss quiz for bank exams.
- If you are looking to find out the best tricks to solve Profit & Loss questions then BYJU'S Exam Prep is your choice.
- BYJU'S Exam Prep has accumulated the most comprehensive manner to elaborate the formulas for Banking exams.
- Practical Illustration of any concept regarding Profit & Loss is one of the blooming features that only BYJU'S Exam Prep armed you with.
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FAQs on Profit & Loss in Banking Examination
- What is a Fixed Cost:
- Anything which does not change under any given condition is a Fixed Cost. It is always constant.
- What is a Variable Cost:
- Number of units determines its variation.
- What is a Balance Sheet:
- Anything that records the asset of a Company or its ShareHolder and the liabilities of the same which may include the current or past transactions is a Balance Sheet.
- What is a Point of No Return:
- It states the fact that a governing body is not making any profit or loss at the stage.
- What is a Comparative Financial Statement:
- In two or more accounting periods, the statement that shows in percentage terms the total of income earned and expenses incurred is a Comparative Financial Statement.
- While preparing a common size statement for Profit & Loss, which item is assumed to be 100:
- The revenue that gets triggered and generated from the Operations are generally assumed to be 100 while preparing a common-size statement of a Profit & Loss.
- What is a Bad Debt:
- Every company, governing bodies, organisations invest to grow. If one cannot recover the money which has been invested is called a Bad Debt.
- What is an ROI:
- Any business hub or unit invests upon an idea or a product keeping in mind the fact of feasibility and time for the return. It is called the Return on Investment or ROI.