Correct Answer - Option 1 : loss of Rs. 1000
Given:
A horse and a cow was sold for Rs. 12,000 each
Horse sold at a loss of 20%
Cow sold at a gain of 20%
Concept used:
Loss = CP - SP
Calculation:
Let the cost price of the horse be H and that of the cow be C.
Horse sold at a loss of 20%
⇒ H × (80/100) = 12,000
⇒ H = 15,000
The cow sold at a gain of 20%
⇒ C × (120/100) = 12,000
⇒ C = 10,000
Total CP = H + C = Rs. (15,000 + 10,000) = Rs. 25,000
Total SP = Rs. (2 × 12,000) = Rs. 24,000
Net loss = Total CP - Total SP = Rs. (25,000 - 24,000) = Rs 1000
∴ Net loss of Rs 1000 in the entire transaction.
