RS Aggarwal Solutions for Class 7 Chapter 11 explains the Concept of Profit and Loss. The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. The P&L statement is synonymous with the income statement. The extra money earned by selling an article is called profit or gain When Selling Price (S.P.) is greater than the Cost Price (C.P.). The money lost by selling an article is called Loss. When Cost Price (C.P.) is greater than the Selling Price (S.P.), we have a loss. Profit and Loss are based on Cost price and selling price of the product. Other parameters are gain percentage and loss percentage.