Question

A house and store were sold for $\text{Rs.}12,000$ each. The house was sold at a loss of $20\%$ of the cost and the store at a gain of $20\%$ of the cost. The entire transaction resulted in

• A. No loss or gain
• B. Loss of $\text{Rs.}1000$
• C. Gain of $\text{Rs.}1000$
• D. Gain of $\text{Rs.}2000$
• E. None of these

Answer 1

The correct option is B Loss of $\text{Rs.}1000$

$12,000=H-\frac{1}{5}H\therefore H=15,000$

$12,000=S+\frac{1}{5}S\therefore S=10,000$

$H+S=25,000$.

Therefore, the sale resulted in a loss of $Rs.1000$.