Raman purchased a car for Rs. 5 lakh and sold it for Rs. 4 lakh. Find profit/loss in this transaction

Answer

To find the profit or loss in Raman's transaction, we will follow these steps:

### Step 1: Identify the Cost Price (CP) and Selling Price (SP)
- **Cost Price (CP)**: This is the price at which Raman purchased the car, which is Rs. 5 lakh.
- **Selling Price (SP)**: This is the price at which Raman sold the car, which is Rs. 4 lakh.

### Step 2: Calculate the Loss
To determine whether Raman made a profit or a loss, we need to compare the Cost Price and Selling Price.

- **Loss** can be calculated using the formula:
\[ \text{Loss} = \text{Cost Price} - \text{Selling Price} \]

Substituting the values:
\[ \text{Loss} = 5,00,000 - 4,00,000 \]

### Step 3: Perform the Calculation
Now, we will perform the subtraction:
\[ \text{Loss} = 1,00,000 \]

### Conclusion
Raman incurred a loss of Rs. 1 lakh in this transaction.

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