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LOSS AND GAIN, Is one of the imaginary accounts in Double Entry Book Keeping, and so called in order to supply the want of real or personal titles in recording gains and losses, which could not with propriety be placed to real or personal accounts. It is by this Rule, that merchants discover the gain or loss in business, and the rate per cent. in buying or selling goods.

Q. What does the words buy or bought, sell or sold imply in this rule?

A. Buy or bought, means the first cost of the goods, sell or sold, the sales made. Q. What does the first cost or invoice refer to? A. The debtor side of a merchandise account. Q. What does the items soid refer to? A. The credit side of a merchandise account. Q. How is a gain ascertained?

A. By taking the difference between the first cost and the sales.

Q. How is a loss ascertained?

A. When the amount sold is less than the first cost, take the difference, that difference will shew the loss.




First cost and a gain given to find the rate per cent.

RULE.—Take the difference between the first cost and the sales. Then say as the first cost is to the difference, so is 100 to the rate per cent.

Ex. 1. Bought coffee at 10 cts. per lb. and sold it for 12 cts., how much is the gain per et.? Ans. 20 pr. ct.

Sold for 12
Bought for 10

As 10 :

2 gain : : 100 = 20 pr. ct. Ans.


Given the first cost and a loss to find the rate per cent.

RULE.- As the first cost is to the loss, so is 100 to the rate per cent.

Ex. 2. Bought sugar at 8 cts. per lb. (which was damaged,) and had to dispose of it at 5 cts. per lb., how much is the loss


Ans. 371 pr. ct.
Bought for 8 cents.
Sold for 5

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To gain a certain per centage. Rule.--As 10 per cent is to of a hundred, add it to the first cost. Thus, ty of $1.00 is 40 cts. which added, make $4.40, the selling price required; or, agreeably to the common method, say as 100: 110 :: $4.00 = $4.40 as before. The first method is more concise, and therefore, the best.

1. Admitting I purchase cloth at $4 per yard, and wish to gain 10 per cent, how much is the selling price?

2. Bought calico at 20 cts. per yard, and want to gain 25 per cent, how much must be the selling price per yard?

Ans. 25 cts.


Selling price,gain and rate per cent given to find the first cost.

Rule.--Add the gain per cent. to 100, then say as 100 with the given per centage added, is to 100, so is the retail price to the first cost.

1. Suppose the retail price to be $5 per yard for cloth, and the gain 25 per cent, how much is the first cost?

Ans. $4.00 per yard.



When a certain loss per cent. has to be sustained on the first

cost to find the retail price. Rule.—Multiply the first cost by the given per centage, and divide by 100 for the amount of loss sustained, the amount subtracted from the first cost will give the result; or, as 100 : 84 : : 840 : $705.60 as required.

Suppose I purchase a lot of goods for $840, at auction, and owing to their being damaged, have to sustain a loss of 16 per cent below the first cost, how much will they be sold for?

Ans. $705.60.



To find the profit per pound, per yard, &c. when the first

cost and sales of a certain number of yards, pounds, cwts. &c., are given.

RULE.—Find the whole gain, and divide it by the number of yards, pounds, or cwts., &c.

Ex. 5. Bought a chest of tea, containing 340 lbs. for $289, and sold it for $408, what was the profit on each pound?

Ans. 35 cts. per lb.


When there is a loss per cent. sustained by the sale and the

first cost is required. RULE.—Subtract the rate per cent. from 100, then say as 100 less the rate per cent is to 100, so is the amount of the sale to the first cost.

Ex. 6. Sold a lot of dry goods for $540, and had to sustain a loss of 10 per cent., what did they cost me?

Ans. $600.


When you purchase goods and wish to gain a certain sum

on the whole purchase, so as to be able to sell them at a certain per centage.

Rule.-Add the sum you wish to gain to the amount of the purchase, then divide that amount by the number of yards, pounds, and cwts. for the answer required.

Ex. 7. A merchant tailor bought 100 yards of cloth for $256, how much must he sell it per yard to gain $44 on the whole?

Ans. $3 per yard. 1. Bought knives at 20 cents each, and sold them for 25 cents, how much is gained per cent.? Ans. 25 pr. ct.

2. Suppose I buy cloth for $5 per yard, and sell it for $6, how much is the gain per cent.? Ans. 20 pr. ct.

3. A store-keeper sold 100 yards of silk at $1.50 per yard, which cost him $1.25 per yard, how much did he gain by the sale?

Ans. $20 on the whole. 4. George Brown, merchant, Baltimore, purchased the following bill of goods, viz: 10 pieces domestic muslin, each 29 yards at 10 cents per yard, and 16 pieces calico, each 274 yards at 20 cents per yard, how much is the retail price per yard on the muslin and calico, and the whole gain allowing a gain of 25 per cent. for the sale of the goods?

A. The retail price of the muslin is 123 cts. per yard, and the calico 25 cts. per yard—whole gain $29.25.

5. Sold a yard of cloth for $1.55, by which was gained at the rate of 15 per cent., what would have been the gain per cent. if it was sold for $1.72? Ans. $27.61 +

6. A. sold cloth at 84 cents per yard, and gained 10 per cent., should it be sold for $1.20, what would be the gain?

Ans. $574. 7. Richard Rich purchased of D, Draper, 18 pieces of broad cloth at $8 per piece, of which he sold 10 at $9.60 per piece, 5 pieces at $9 per piece, and the balance he wishes to dispose of, on terms to gain 12 per cent. on the whole, at what rate must the remainder be sold at per yard?

Ans. $6.76. 8. Sold a lot of dry goods for $5.50, and gained 10 per cent., how much was the first cost? Ans. $5.00.

9. Bought at auction a hhd. of molasses for $50, and having found, that there was a leakage of 5 gallons, I sold it immediately, at 10 per cent. loss, how much did I receive for it?

Ans. $45. 10. Bought rum at $1.25 per gallon, and by accident, so much leaked out, that I am willing to lose 20 per cent., at what price must I sell it per gallon? Ans. $1.00.

11. Bought for cash $1740 worth of hardware, and sold the lot for $2000 on a credit of 3 months, what is the gain per cent. per annum?

Ans. 5957. 12. Bought goods to the amount of $1400 cash, and sold them at 4 months credit for $1600, what is the gain per cent. per annum?

Ans. 429c. 13. Bought 3000 gallons of molasses at a credit of 2 months, for 30 cents per gallon, and sold it again at 35 cents per gallon, on a credit of 3 months, required the gain per cent?

Ans. 644. EXERCISE QUESTIONS. 1. I purchased 100 boxes of prunes at $2.10 each, and by selling them at $3.50 per cwt the gain is 25 per cent, the weight of each box is required? Ans. 84 lbs.

2. If I sell linen for 75 cents per yard, and gain 12} per cent., what would the prime cost of 30 pieces, each 33} yards, stand me in the whole?

Ans. $670. 3. Bought a quantity of leather at 22 cents per lb., how should I sell it to gain 10 per cent profit?

Ans. 24c. 2m. 4. Admitting that a yard of muslin was sold for 32 cents, which cost 37į cents, what is the loss per cent.?

Ans. 143. 5. Sold 500 penknives at 17 cents a piece, and by so doing lost 9 per cent, what is the loss on the whole?

Ans. $8.40 + 6. Bought a hhd. of wine for a certain sum, but 15 gals. having leaked out, I sell the remainder for $2.21.63 per gal., and thereby lose 5 per cent. on the cost, what was the cost?

Aps. $112.

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