Question

Ravi bought a car for $\text{Rs.}3,00,000$ and sold it to his friend for $\text{Rs.}2,80,000$. How much profit or loss is incurred by Ravi?

• A. Profit
• B. Loss
• C. $\text{Rs.}80,000$ Loss
• D. Neither Profit nor Loss

Answer 1

The correct option is B Loss

Given, Cost Price$(C.P.)$ of the car $=\text{Rs.}3,00,000$

Selling Price$(S.P.)$ of the car $=\text{Rs.}2,80,000$

In this case, $C.P.>S.P.$

$\Rightarrow$ Ravi sold the car to his friend at a loss of $C.P.-S.P.=\text{Rs.}(3,00,000-2,80,000)=\text{Rs.}20,000$