Profit, Loss, Discounts, Successive Discount, True Discount, Banker՚s Discount Tricks and Formulas

Get unlimited access to the best preparation resource for CA/Foundation : get questions, notes, tests, video lectures and more- for all subjects of CA/Foundation.

Profit & Loss

  • If the value of a machine is ‘P’ in a year, then its value after ‘N’ years at a depreciation of ‘R’ p. c. p. a is
  • If the value of a machine is ‘P’ in a year, then its value ‘N’ years ago at a depreciation of ‘R’ p. c. p. a is
  • Selling Price

Discount

Buy X and Get Y Free

  • If articles worth ₹ x are bought and articles worth ₹ y are obtained free along with x articles, then the discount is equal to y and discount percentage is given by

Successive Discounts

When a discount of is followed by another discount of then

False Weights

  • If an item is claimed to be sold at cost price, using false weights, then the overall percentage profit is given by

True Discount

Suppose a man has to pay ₹ 156 after 4 years and the rate of interest is 14 % per Annum. Clearly, ₹ 100 at 14 % will amount to ₹ 156 in 4 years. So, the payment of ₹ 100 now will clear off the debt of ₹ 156 due 4 years hence. We say that: Sum due due 4 years hence;

  • Present Worth (P. W.)
  • True Discount (T. D.)
  • .
  • Amount
  • Interest is reckoned on R. W. and true discount is reckoned on the amount
  • Let rate per annum & time then,
  • When the sum is put at compound interest, then P. W.

Banker՚s Discount

  • Banker՚s Discount (B. D.) is the S. I. on the face value for the period from the date on which the bill was discounted and the legally due date.
  • Banker՚s Gain for the unexpired time
  • When the date of the bill is not given, grace days are not to be added
  • on bill for unexpired time
  • ) .)

Developed by: